According to Galaxy Research, Bitcoin mining is facing a change in decentralization, while AI decentralization may accelerate in the opposite direction. Galaxy Research head Alex Thorn said Bitcoin mining is becoming more centralized over time, while artificial intelligence may move toward a more distributed model.
Bitcoin vs AI Decentralization
Bitcoin mining decentralization has changed significantly since its early days. Initially, individuals could mine Bitcoins using personal computers. Today, this process requires specialized ASIC machines and large-scale mining farms.
“Bitcoin mining started out decentralized” but has since become concentrated due to high costs and infrastructure demands, Thorne said. This trend raises concerns about whether Bitcoin mining decentralization can be sustained over the long term.
Conversely, AI decentralization may increase as technology evolves. Alex Thorn points out that artificial intelligence began in centralized systems, relying largely on data centers and cloud computing.
“AI may follow the opposite path,” he said, which he explained by explaining how data constraints and memory constraints will force researchers to develop open-source solutions. The new system enables users to operate models on their own devices, eliminating the need for them to connect to remote servers.
The expansion of edge computing technology requires organizations to adopt AI decentralization as an essential step. Edge enables AI models to work across devices without the need to access a centralized cloud platform.
According to Grand View Research, the global edge AI market will grow from $25 billion in 2025 to $119 billion by 2033. The market expansion is driven by the growth of IoT devices and increased data privacy requirements as well as the need for immediate data processing.
The geographic distribution of Bitcoin mining decentralization continues to progress despite existing centralizing forces. Mining operations in the United States have shifted to Paraguay and Ethiopia as energy expenses have increased, KuCoin reported.
