Cryptocurrency + AI: How to leverage blockchain technology to hop on the AI train?

In recent times, the US stock market has been hitting new highs, with funds flocking to AI stocks, while cryptocurrencies have been moving in the opposite direction with declines. The issuer of Bitcoin spot ETF, Bitwise, recently released a report on the intersection of cryptocurrency and artificial intelligence (AI), stating that the convergence of AI and cryptocurrencies will be even greater than people imagine, with many practical applications that can help blockchain technology support the growth of AI.

US stock market hitting new highs! Funds flocking to AI stocks, while cryptocurrencies lose appeal.

Bitcoin Miners Pivot to AI

Many Bitcoin mining companies have already caught up with the AI trend! The competition among AI giants is causing an unprecedented shortage of data centers, AI chips, and power supply. The world's four major cloud companies, Amazon, Google, Meta, and Microsoft, are expected to spend nearly $200 billion on data center expansion by 2025, mainly to meet the growing demand for artificial intelligence. However, the new facilities are quickly filled up: according to a report by commercial real estate company CBRE Group in March, approximately 83% of the under-construction data center capacity has been pre-leased driven by AI companies and cloud service providers. Data centers cannot keep up with the booming development of artificial intelligence.

Bitcoin miners have been dealing with and storing large amounts of data. They possess the resources that AI companies urgently need—powerful chips, state-of-the-art cooling systems, and supporting infrastructure.

AI cloud provider CoreWeave proposed a $1.6 billion acquisition of Bitcoin mining firm Core Scientific, a 55% premium over its market price. In the same week this proposal was announced, Core Scientific unveiled its largest miner-AI partnership to date: a $3.5 billion deal to host CoreWeave's AI-related services in its data centers over the next 12 years.

Other mining companies like Hut 8, Iris Energy, and Bitdeer have also announced similar AI hosting plans in recent months.

Bitdeer turns losses into profits, focusing on AI cloud services and proprietary mining equipment.

Using Blockchain Technology to Prevent AI Abuse

Public blockchains that support encryption technology are available for anyone to use and are not controlled by central entities. Entrepreneurs are already using this technology to address the most serious potential abuses of artificial intelligence.

For example, the startup Attestiv creates "digital fingerprints" for videos based on metadata such as the time and location of recording. It then stores the fingerprint on a public blockchain. Any platform that views the video can check it against the original fingerprint and let viewers know if the video has been tampered with. In theory, similar methods could be used to verify original research, even all data from government officials, which many experts believe blockchain could play a critical role in balancing AI.

Cryptocurrency Combined with AI Assistants to Execute More Functions

Another area where cryptocurrencies and artificial intelligence may intersect is in the virtual assistant field. AI assistants like Apple's Siri or Amazon's Alexa can help people buy plane tickets or make restaurant reservations, and advancements in AI are making these tools more popular.

However, from booking to payment, privacy and trust issues are involved. Perhaps pairing AI assistants with smart contracts and digital native currencies like Bitcoin or stablecoins could help AI assistants perform more functions.