Crypto returns will remain muted as investors chase AI gains, economist says

AI-crypto mega-trend could add $20 trillion to global GDP

However, Bitwise Senior Crypto Research Analyst Juan Leon sees the intersection between AI and crypto as forming a mega-trend that could add as much as $20 trillion to the global economy. 

"The intersection of artificial intelligence and crypto is going to be even bigger than people imagine, as the two industries could add a collective $20 trillion to global GDP by 2030," Leon said in a recent report .

Bitcoin miners diversifying into AI

The race for AI supremacy is causing an unprecedented shortage of data centers, AI chips, and electricity. Bitcoin mining operations are specifically designed to process and store massive amounts of data, possessing the very resources—powerful chips, state-of-the-art cooling systems, and essential infrastructure—that AI companies desperately need.

Artificial intelligence cloud provider CoreWeave offered to acquire bitcoin miner Core Scientific for $1.6 billion earlier this month — a 55% premium above its market price, though the bid was rejected. That followed a 12-year, $3.5 billion partnership deal  between the two firms, enabling CoreWeave to host its AI-related services in Core Scientific’s data centers.

Other mining firms, such as Hut 8 and IREN, have also pursued similar AI diversification initiatives in recent months, seeking to expand their revenues following  April’s bitcoin halving . This cut miners' block subsidy rewards by 50%, reducing the average new daily supply of bitcoin from 900 to 450.

Leveraging AI for DeFi trading