Bitcoin Mining Centralizes as AI Decentralizes: Galaxy Research | Crypto Security News
Crypto security news: Bitcoin Mining Centralizes as AI Decentralizes: Galaxy Research. This update explains what happened, why it matters for wallets, exchanges, traders, and users, and what the market should watch next.
Crypto Security Update
Bitcoin mining runs the risk of becoming more centralized as time goes on, while artificial intelligence could be moving in the opposite direction, according to Galaxy Research head Alex Thorn.Thorn said that while Bitcoin mining began decentralized, with users mining Bitcoin on their personal computers, it has since become far more centralized, requiring ASIC miners or industrial-scale farms. “AI may follow the opposite path,” said Galaxy’s research head Alex Thorn on Sunday, explaining that AI started centralized in giant hosted clusters, but as frontier models experience “data scarcity, context limits, and memory bottlenecks, open-source models could close the gap.” “If local models keep getting smaller, cheaper, and more efficient, AI may become increasingly personal and on-device.”The divergence strikes at the heart of crypto’s core promise: decentralization. If Bitcoin mining were to continue down a path of centralization, it could begin to raise concerns about the network’s long-term resilience.AI may move opposite to BTC mining and become more decentralized over time. Source: Alex ThornEdge AI market to grow 300% in the next eight yearsEdge AI computing refers to the deployment and running of AI models directly on local devices or “at the edge” of the network, rather than sending all data to centralized cloud servers or massive data centers for processing.The global AI edge market is anticipated to grow from about $25 billion in 2025 to a projected $119 billion by 2033, according to Grand View Research.Related: Researchers discover malicious AI agent routers that can steal cryptoThe edge market is experiencing significant growth driven by the “rapid expansion of IoT (Internet of Things) and connected devices,” stated GVR. This increases the demand for real-time and low-latency data processing, growing the adoption of AI-enabled automation across industries, and “rising focus on data privacy and localized intelligence at the network edge,” GVR added.Edge AI market is predicted to surge by 300% by 2033. Source: Grand View ResearchBitcoin mining is decentralizing geographically Crypto exchange KuCoin reported on Friday that Bitcoin mining has become increasingly unviable in the United States as the cost to mine a single BTC has surpassed $100,000 in some regions due to surging energy costs. This is resulting in a geographic migration with hash rate actively moving toward the “Global South,” with Paraguay and Ethiopia emerging as the leading destinations due to surplus hydroelectric power.This could help to decentralize mining, at least from a geographical perspective.“This decentralization of mining power across different continents enhances the security of the network by making it less vulnerable to any single country’s political or environmental shocks,” it stated.Magazine: Bitcoin quantum-safe without upgrade? CZ’s 2031 crypto vision: Hodler’s DigestCointelegraph 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
Why This Security News Matters
First, this development may affect exchange safety, wallet security, user trust, and broader market sentiment. In addition, it may influence platform security practices, fund recovery efforts, and regulatory pressure. As a result, traders and crypto users should watch the next updates closely.
What To Watch Next
Watch for official statements, post-mortem reports, wallet warnings, exchange responses, and fund recovery updates. In particular, any new details about phishing, exploits, private key exposure, or security patches could directly affect the broader crypto market.
