As the old mining machines are giving less profit due to an increase in cost, the manufacturers of Bitcoin miners are moving to Artificial intelligence technology.
According to a report by analytics firm TokenInsight, the biggest players in the mining industry are on the way to shift from old apparatus for mining towards AI chips. Keeping this as a long term goal, the development and research over chips is continued.
Manufacturers of Bitcoin mining rigs have revenue in billions of dollars. Per the report, the revenue of Bitmain was $300 million in the first quarter of 2020.
Profit is Decreasing
But with time, profit of the producers is decreasing. After the bitcoin halving, the costs of mining rigs have increased which has diminished the profit ratio of the firms.
Some mining rigs manufacturers such as WhatsMiner and with the coming of new cryptocurrencies with the option of Proof-of-Stake are undermining the profitability of the big players. TokenInsight said:
Also read:“From a long-term perspective, blockchain mining has changed from its original high-yield state to deterministic and stable returns.”
High-Efficiency Chips
Artificial Intelligence will solve this problem due to its high efficiency. AI chips are innovative processors that are capable to run millions of calculations per second. The shifting to new technology will open new opportunities to have profit in bulk amounts.
According to the report,” he research team believes that AI chips have broad prospects and that they have a high degree of overlap with mining machine chips in terms of design and manufacturing.”
“Mining machine manufacturers’ experience in mining machine chips can also be quickly transplanted to the field of AI chips. As a result, AI chips are bound to become a battleground for mining manufacturers,” TokenInsight added.
Bitmain even started working over AI in 2018 and rolled out Sophon featuring millions of operations per second. After Bitmain, Canaan and Ebang have also started to work over it.
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