Bitcoin mining is growing more centralized over time, while artificial intelligence may be decentralizing, according to Galaxy Research head Alex Thorn. Thorn notes mining now relies on specialized hardware and large farms, whereas AI started centralized but open-source models could flourish. Meanwhile, mining is shifting geographically due to high U.S. energy costs, and the edge AI market is projected to grow 300% by 2033.
Bitcoin mining began decentralized but now requires industrial-scale operations, said Galaxy’s research head Alex Thorn. *“AI may follow the opposite path,”* Thorn stated, explaining AI started in giant hosted clusters.
He suggested open-source models could close the gap as frontier models face limitations. “If local models keep getting smaller, cheaper, and more efficient, AI may become increasingly personal and on-device,” Thorn said.
The global edge AI market is anticipated to grow from about $25 billion in 2025 to a projected $119 billion by 2033, according to Grand View Research. This growth is driven by demand for real-time processing and data privacy at the network edge.
Bitcoin mining has become unviable in parts of the U.S. where costs exceed $100,000 per BTC, reported crypto exchange KuCoin. This is causing a hash rate migration toward regions with cheaper energy like Paraguay and Ethiopia.
Such geographic shifts could decentralize mining power across continents. This enhances network security by reducing vulnerability to single-country shocks, the report stated.
