Summary
The crypto mining industry has split into two and confused on which side to go with. After the recent halving event of Bitcoin many miners have shifted to AI in hopes of increasing stocks while there is a major portion still holding onto bitcoin.The halving event that occurred six months ago has made reward for bitcoin miners 3.125 BTC, which is very little compared to what it could reward in prior years. A halving event occurs in order to prevent inflation and stabilize the coin in the market. It reduces the number of bitcoins entering circulation. As the supply decreases, halving events have historically led to increased demand and price appreciation. This is the reason why people are still holding onto it.
Meanwhile people who have left bitcoin and invested in AI are experiencing immediate gain. Core Scientific got out of bankruptcy after shifting its focus to AI by upgrading data centers to handle high performance computing. Similarly TeraWulf’s stock has become more than double after investing in AI data centers. This shows how investing in AI right now might be the right choice but many speculate bitcoin will take over in the long run.
An another portion of miners are holding onto bitcoin to avoid losses, if they leave the shares stay afloat and sell at the correct time. This uncertainty and splitting of miners has created buzz over the internet, each path carries risk but each option also allows miners to maintain profitability while they wait for Bitcoin’s next bullish cycle.
Learn about Bitcoin’s role in shaping the future of Defi here.