"Every potential mining investment now goes through this filter: is it better to use this site for AI purposes or mining," Spencer Marr, president of bitcoin mining firm Sangha Renewables, told CoinDesk. "Every time they choose AI or other forms of high-performance computing, that means hashrate won't climb, and hashprice won't be negatively impacted."
Establishing a floor on hashprice would be valuable for miners as it would guarantee that computing power will never go below a certain threshold in terms of value, no matter the conditions.
Hashrate is a term that refers to the total combined computational power backing a Proof-of-Work blockchain, in this case Bitcoin. Hashprice, meanwhile, is the amount of bitcoin that a miner can expect to earn each time their machines perform a certain number of hashes, or computations, on a given timeframe.
The rise of artificial intelligence (AI) data centers might turn into a boon for bitcoin miner economics - even the ones that don't work with AI. The reason? The competition between AI data centers and bitcoin miners for cheap electricity could end up establishing a floor on hashprice, a crucial metric used by miners to measure their revenue.
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