Cardano founder Charles Hoskinson has backed the view that Bitcoin mining will become increasingly profitable in the coming years, citing the rise of artificial intelligence. Given the growth trajectory, Hoskinson invested in the Trump-linked American Bitcoin, tipping the company to make “serious cash.”
Bitcoin Miners To Gain From AI Companies, Says Hoskinson
As Bitcoin mining companies’ revenues have waned in recent years, Charles Hoskinson is confident of a reversal in fortunes for the sector in the coming months. In an X post, the Cardano founder disclosed that AI will be the key catalyst to boost Bitcoin miners’ revenues, predicting a five-year window for a resurgence.
According to Hoskinson, AI companies can leverage the large data centers run by Bitcoin miners rather than building out from scratch. Already, mining companies have invested heavily in power infrastructure, cooling systems, and large-scale compute facilities – the key requirements for AI service providers.
The Cardano founder predicted that rising AI demand will “absorb” Bitcoin mining’s infrastructure within half a decade. His post forecasts that AI companies will begin renting or buying compute capacity from mining companies, significantly expanding their revenues streams.
Rising energy costs, falling asset prices, difficulty increases, and block reward halvings have adversely impacted the profitability of Bitcoin mining in recent years. Rather than slugging it out, several mining companies have undergone a complete rebrand to AI data centers, while others have floated new divisions to cater to the growing market.
“Mining is good business thanks to AI. Bitcoin mining pays for the data center and infrastructure,” said Hoskinson. “AI absorbs it in 3-5 years.”
Spurred by his belief, the outspoken Cardano founder participated in American Bitcoin’s $200 million funding round. American Bitcoin, co-led by Eric Trump, Donald Trump Jr., and Hut 8 Mining, operates as a BTC mining and accumulation company with an ambitious plan to overtake Strategy as the top Bitcoin mining company.
“This team gets it and will make serious cash,” said Hoskinson, hinting at American Bitcoin’s imminent pivot to provide compute for AI companies.
Hoskinson’s investment in American Bitcoin elicited mixed reactions from Cardano investors, with ADA slipping by 2% over the last day. The Cardano founder has previously revealed his admiration for Bitcoin as the premier cryptocurrency, tipping the asset to reach $1 million in the future. Furthermore, Hoskinson has branded Bitcoin DeFi as the catalyst to push Cardano’s total value locked (TVL) to unprecedented levels.
Source: https://zycrypto.com/cardanos-hoskinson-says-ai-will-absorb-btc-mining-infrastructure-within-3-years/
