- Mike Novogratz shared his opinion on Bitcoin mining trends in 2024
- He argues that this year will be a key year, and AI and HPC in this
- The efficiency of computing will increase significantly
Mike Novogratz has called 2024 a crucial year for Bitcoin mining, predicting a bigger role for artificial intelligence (AI) and high-performance computing (HPC).
What Exactly Is Mike Novogratz Pointing Out?
Mike Novogratz refers significantly to the Galaxy Digital report, giving it his assessment.
The outstanding factors he mentioned are the integration of AI and HPC, which is changing the mining industry, creating new opportunities, and emphasizing the urgent need for access to electricity.
Galaxy Digital has revised its year-end hash rate target to 775 exahashes per second (EH/s), expecting public miners to control up to 30% of the network’s total hash rate and expects mining machines to become significantly more efficient, let less key factors like uncertainty over their deployment remain.
This complements another estimate that Bitcoin mining complexity has declined, falling below 80 trillion for the first time since the last halving event in early July. As a result, Bitcoin mining companies raised a record amount of equity capital in the first quarter of 2024 to increase their cash reserves and improve equipment efficiency.
However, the other key factor lies beyond technology and is the fundamental market principle: to remain economically viable. So, for Bitcoin mining to continue to grow, its price must remain between $65,000 and $70,000.
Conclusions
We live in an age of a critical sum of technologies that exponentially evolving and reinforcing each other.
Of course, basic laws and principles always play a role, including energy prices, which can bring unexpected surprises in the context of global political and economic uncertainty.
However, with sufficient efficiency of technologies, we have repeatedly overcome resource constraints by optimizing production and computing by multiples. Therefore, it is precisely this kind of development, where optimization is a mandatory criterion for scaling, that benefits the sustainability and progress of the crypto industry.
