Bitcoin mining risks becoming more centralized over time, while artificial intelligence may move in the opposite direction, Galaxy Research head Alex Thorn said.
Thorn noted that Bitcoin mining began as a decentralized activity—users mining on personal computers—but has shifted toward specialized ASIC hardware and industrial-scale farms. By contrast, AI started in centralized clusters powering massive data centers, yet open-source models and improvements in efficiency could enable decentralization.
“If local models keep getting smaller, cheaper, and more efficient, AI may become increasingly personal and on-device,” Thorn said.
That divergence touches on crypto’s foundational promise of decentralization. Continued concentration of Bitcoin mining could raise questions about the network’s long-term resilience and vulnerability to concentrated control.
Edge AI market to grow 300% in the next eight years
Edge AI refers to running AI models on local devices or at the network edge instead of routing all processing to centralized cloud servers. The global edge AI market is projected to expand from roughly $25 billion in 2025 to about $119 billion by 2033, according to Grand View Research.
Growth is being driven by the rapid expansion of IoT and connected devices, demand for real-time and low-latency processing, rising deployment of AI-enabled automation across industries, and a greater focus on data privacy and localized intelligence.
Bitcoin mining is decentralizing geographically
A recent KuCoin report said Bitcoin mining has become increasingly unviable in parts of the United States as the cost to mine a single BTC has exceeded $100,000 in some regions amid rising energy prices. This economic pressure is driving hash rate toward the “Global South,” with countries like Paraguay and Ethiopia emerging as attractive destinations because of abundant hydroelectric power.
This geographic migration could produce a different form of decentralization: spreading mining power across continents can enhance network security by reducing susceptibility to any single country’s political or environmental shocks.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy