Comparing Decentralization Trends in Bitcoin Mining and Artificial Intelligence: Researcher Insights

According to Alex Thorn, head of Galaxy Research, Bitcoin mining may become more centralized over time, while artificial intelligence could develop in the opposite direction.

Thorn pointed out that although Bitcoin mining was initially decentralized, allowing users to mine on personal computers, it has now evolved into a centralized model requiring ASIC miners or industrial-scale mining farms.

Artificial intelligence may exhibit a contrasting decentralization trend compared to Bitcoin mining. Source: Alex Thorn

The edge AI market is expected to grow by 300% over the next eight years.

GVR noted that the edge market is experiencing significant growth, primarily driven by the rapid expansion of the Internet of Things (IoT) and connected devices.

This growth has increased the demand for real-time and low-latency data processing, driving the adoption of AI automation across various industries, while also enhancing the focus on data privacy and local intelligence at the network edge, GVR added.

The edge AI market is projected to surge by 300% by 2033. Source: Grand View Research

Geographical Decentralization of Bitcoin Mining

This trend has led to a geographical migration of hash power, with current hash power actively moving towards the “Global South,” where Paraguay and Ethiopia have become major destinations due to their abundant hydroelectric resources.

This may help to some extent in decentralizing mining from a geographical perspective.

“This decentralization of mining capabilities across different continents enhances the security of the network, making it less susceptible to political or environmental shocks from any single country,” the report stated.