Many industries, including crypto, continue to welcome AI technology because of its benefits. And just recently, Elon Musk predicted that this technology could become ‘smarter than the smartest human’ in about one or two years. PwC mentioned that its continued adoption might result in a 14% increase in the global GDP by 2030. With blockchain – crypto’s technology – already offering captivating benefits, what might things look like if these two technologies are combined?

Well, we cannot overemphasize why it is important for you as an investor to stay informed about the current trends in the crypto industry. For example, prices of currencies vary from time to time depending on the country you are trading from, and staying informed about such changes can help ensure you aren’t left out. Let’s say, for instance, you are an Indian investor; regularly checking the conversion rate of BTC to INR can help ensure you make better trading decisions. In this article, you will discover how recent technologies like AI are affecting the crypto industry and many more fascinating facts.

Artificial Intelligence in Bitcoin Mining

Bitcoin mining is among the areas in this industry that have opened up to AI, although there are many discussions surrounding it. A good example is Thomas Chippas, CEO of Argo Blockchain, who, despite agreeing that AI could benefit crypto mining, suggested that it doesn’t solve mining computational problems directly. He said that the technology could enhance resource allocation and fleet performance by processing the enormous amounts of data produced by the mining rigs.

It’s no wonder major Bitcoin mining firms have started turning to rigs that can run and train AI systems. Part of why this has been happening is that the companies believe that AI training might be a safer source of revenue than the unpredictable crypto industry. J.P. Morgan reported that about 14 of these companies increased in value by 24% in June 2024 alone.

This transition has, however, not been without controversies. Some experts claim that AI is not environmentally friendly – ChatGPT alone can use up to ten times more power than searching on Google. A SemiAnalysis report showed that more than 500,000 of Nvidia’s A100 HGX servers might be required if people used ChatGPT for their searches in the place of Google.

This, put together with their notorious consumption of energy, intensifies the pressure that Bitcoin miners have when it comes to environmental conservation. Researchers at the University of Cambridge found that mining in Switzerland alone used more energy than the rest of the entire nation. As discussions about becoming more energy efficient become popular, you want to ensure that your company remains compliant so that you appeal to sustainability-conscious partners.

What are Things Like for Small Miners?

After the recent halving event happened in April 2024, verifying transactions became more competitive, and profitability was reduced. Miners resorted to using advanced ASIC rigs to improve their productivity and reduce power consumption. This, however, did not sit well with smaller miners because they needed more sophisticated equipment to remain competitive. And as the industry is likely to welcome AI even more in the future, smaller miners may encounter more challenges.

Thomas Chippas claimed that this adoption could widen the barriers to entry, which might reduce the diversity of those who participate in the network. What might this imply for those who think crypto should decentralize finance, especially now that we will likely have few players in the ecosystem?

Examples of AI Tokens in the Crypto Industry

Besides integrations in the crypto mining sector, you’ve probably encountered tokens that could be used in blockchain protocols, decentralized websites and so on. You can use them to purchase services and access data on a website; the website can similarly use the tokens to reward customers. As of May 2024, there were about 90 AI tokens in the crypto industry, leading to a market value of about $39 billion, according to Exploding Topics.

Fetch.ai, one of the most popular AI tokens, set its value increase by 329% between mid-February and mid-March 2024. Towards the end of March, Fetch.ai merged with SingularityNET and Ocean Protocol to form ASI (artificial superintelligence). This collaboration came after the three companies sought to develop a decentralized approach to AI that was opposite to AI protocols and platforms, where large tech companies dominate.

More Examples

Near Protocol (NEAR) is another token, and by August 2024, its market capitalization had reached $4.5 billion. It applies sharding to separate a network of computers into segments that allow nodes to handle only a fraction of transactions. While NEAR borrows from other cloud computing companies like AWS, its infrastructure is more decentralized – operated on a distributed network of computers.

For those seeking to take advantage of an unlimited number of smart contracts to host data, the Internet Computer (ICP) token is just right for you. As if that’s not enough, it is scalable while maintaining a low carbon footprint. Render token takes advantage of Ethereum’s blockchain infrastructure to provide a platform for animation and motion graphics.

The render network often has creators with access to its GPU power, allowing them to create high-quality images faster and lower costs. On the other hand, Node operators provide creators with GPU processing power and receive render tokens as perks.

Conclusion

It’s clear enough that even though integrating AI into the crypto industry still has many questions, this technology can enhance productivity. Its computational ability and sophisticated algorithms can help enhance operational efficiency, ensuring optimal use of resources. And since we are yet to exhaust the potential of AI, there’s no telling how much this technology will affect the crypto sector in the coming days.

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