Thread - Nostr Hypermedia

Bitcoin miners are pivoting to AI hosting. Everyone thinks that's bearish. It's the opposite. Hut 8 signed a $7 billion AI data center lease backed by Google. Core Scientific is being acquired by CoreWeave for $9 billion. Cipher Mining cut its hashrate 51% to build AI infrastructure. AI hosting generates $200-$500 per MWh vs Bitcoin mining's $57-$129. So miners are diversifying into the most profitable use of energy on the planet while keeping their Bitcoin operations running. They're building revenue streams that let them mine through bear markets without panic-selling their BTC. And for the miners who do leave? That's the part everyone forgets. Bitcoin has an immune system called the difficulty adjustment. When miners leave, difficulty drops. Mining gets cheaper for everyone who stays. Margins improve. The network rebalances. It's done this every single cycle for 16 years. China banned mining in 2021. Hash rate dropped 50% overnight. Fully recovered within 8 months. Hit new all-time highs. The "AI is killing Bitcoin" narrative assumes mining is a static system. It's the most adaptive energy market on Earth.

Replies (2)

Moid moid@nostrplebs.com 1 week ago

There is a lot of AI doom around, and it is possible that all of the doom comes to fruition, but we should also look to the positive possibilities - namely AI can help to wargame attack vectors.

OFFGRID OFFGRID@coinos.io 1 week ago

We need to have started building more reactors years ago. The problematic part of all this AI infrastructure is it's outdated and needs to be replaced within four years ish on average. trillion dollars into road infrastructure and it can last 60 years. AI won't generate enough to pay for the multiples of trillions, it's going to cost to create that infrastructure that would be outdated before it can be economically replaced. At some point, there is going to be a financial break. A few $20 subscriptions here and there is a going to cut it.