Why Should Bitcoin Miners Switch their GPUs to AI Crypto Ecosystem?
In the past, the graphics processing unit (GPU) devices were used in the video cards for desktop computers and didn’t make much difference, except for video game enthusiasts who could spot the gap between an average PC and a computer that hosted graphic-intensive video games. GPUs were quite optional probably because the technology at that time didn’t revolve around video games and streaming videos at all.
However, as of today, GPUs are as relevant or even more important as central processing unit (CPU) devices, which stay at the core of every computer, mobile phone, and smart device. How was this possible? It’s because GPUs found their use cases in several areas, but we’ll focus on two key niches: cryptocurrency mining and artificial intelligence.
GPUs for Crypto Mining
The emergence of blockchain (the technology that underpins Bitcoin) back in 2008 opened the door for cryptocurrency mining — a process by which users could get rewarded with new virtual coins in exchange for their effort of validating transactions and adding new blocks in a blockchain network. Mining is mostly supported by blockchain networks that rely on the Proof of Work (PoW) consensus mechanism. In the first two years of Bitcoin existence, miners could generate decent profits with average CPU hardware units, which was possible because of low demand and insignificant competition. In fact, to understand the attitude of some miners at that time, you can think of James Howells, who generated 7500 Bitcoins in 2009 with little or no effort, and later accidentally threw away the hard drive that hosted the private keys. That hard drive would cost now about $70.4 million based on the current BTC rate.
Anyway, as the time passed, competition increased, and miners had to spend more computing power to generate the same portion of Bitcoins. Eventually, it supported the demand for GPUs, which have become more and more powerful to suit the always-updating mining requirements. At one point, Bitcoin became so popular that entire companies were founded with the sole intention of mining. It is clear that such companies had more resources than average miners, and they started to use special hardware known as Application-Specific Integrated Circuit (ASIC), created specifically for mining. This is where ordinary miners started to lose the competition, as ASICs are much more expensive than GPUs, and boosted the mining efficiency by 100 and even more times compared to average GPUs. Bitcoin mining became a luxury available for big players only, which created a monopoly in the market, with the top 5 mining pools having the control over about 70% of the hash power.
GPUs for Artificial Intelligence
Besides the crypto mining industry, GPUs have also become priceless for the AI and machine learning space. Data scientists and AI researchers have used GPUs for machine learning to streamline a series of process and applications, such as speech recognition, natural language processing, image classification, and video analytics among others. The highly parallel structure of GPUs makes them much more efficient for algorithms than CPUs, which is why the AI industry finds them indispensable. Soon, companies like IBM, Facebook, Adobe, Baidu, and Microsoft started to use GPUs for their machine learning projects.
How Does AI Crypto Plan to Leverage GPUs?
AI Crypto is the startup that wants to generate AI solutions for the benefit of everyone. The team aims to create a blockchain-powered AI ecosystem where the participants could share their hardware-based computing power and other resources in exchange for rewards provided in the form of AIC tokens. The AI researchers would eventually use these resources to come up with innovative solutions. Thus, we’ll have a win-win situation — on the one hand, network users will contribute with value by sharing their GPU power and getting rewarded in a rightful way, and on the other hand, AI researchers will benefit from affordable GPU power and will use it to accelerate the AI adoption.
Today, the average miners that apply GPU resources are not using 100% of their hardware units. Considering the already massive waste that became typical for Bitcoin mining, AI Crypto wants to provide smart solutions and use all the GPU computing power for the AI industry. In the AI Crypto Ecosystem, everyone can share their GPU power and generate a passive income based on that.
So why should you waste your GPU power for inefficient mining activities when you can generate a higher income with the AI Crypto ecosystem and contribute with value on top of that? The question is rhetorical.
Moreover, if the Bitcoin price keeps below $10,000, mining this coin is not even profitable for retail miners. Speaking of large-scale mining firms, Morgan Stanley equity analyst Charlie Chan said in a note to investors:
We estimate the break-even point for big mining pools should be US$8,600, even if we assume a very low electricity cost (US$0.03 kW/h).
You can check Morgan Stanley’s table showing break-even points for BTC mining:
We can conclude that Bitcoin mining has become inefficient because it is energy-consuming, it created the conditions for monopoly and centralization, and it uses significant amounts of dirty energy. Moreover, it is not even profitable for average miners to generate new Bitcoins, at least considering the current BTC price.
Our verdict is that AI Crypto Ecosystem represents the smartest method to leverage your GPU resources. By taking part in the ecosystem, you will provide some portions of the GPU’s computational capacity to the public network to supply resources required for AI calculations. In return, you will get rewarded with AIC coins.
All-In Coins, AIC!
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