Bitcoin: After the digital gold rush – why Bitcoin miners are betting on AI
The business model of Bitcoin miners is coming under pressure. Increasing numbers of them are discovering AI as a more lucrative source of income - with dramatic consequences for the most important cryptocurrency.
On August 19, 1848, gold was discovered in California, drawing hundreds of thousands of people to the West Coast. Driven by the desire for wealth and a life free from economic hardships, most were left disappointed with their hopes unfulfilled. Ultimately, profits often went to others: merchants, banks, and entrepreneurs who supplied gold seekers with shovels, clothing, or transportation.
Levi Strauss, the alleged creator of jeans, capitalized on this by selling durable workwear to gold prospectors, laying the foundation for his business.
Fast forward to today, the Bitcoin industry is witnessing a similar moment. No longer is it the mining of Bitcoins that holds the greatest value for many miners, but the infrastructure surrounding it. The data centers, power connections, and cooling systems they initially built for the digital gold rush are now increasingly repurposed for other purposes. What impact does this have on the security of the Bitcoin network?
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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