Opinion: Bitcoin Mining is Becoming Centralized, Unlike AI

Bitcoin mining is becoming more centralized, contrasting with the evolving landscape of artificial intelligence, according to Alex Thorn, head of Galaxy Research.

Bitcoin mining started out decentralized with personal computers (CPUs, GPUs) but has shifted towards centralization with the rise of ASICs and large-scale operations. In contrast, AI began in centralized environments but is expected to become more decentralized as open models improve and become more accessible.

— Alex Thorn (@intangiblecoins) April 12, 2026

Thorn highlighted that early Bitcoin mining was feasible for anyone with a standard computer. However, as the network's difficulty escalated and specialized hardware became essential, large industrial entities with cheap electricity began to dominate the space.

In Thorn's view, the future of AI differs markedly. He believes that open-source AI models will eventually rival closed models in performance, leading to more compact and affordable solutions. This shift could enable AI to function directly on personal devices instead of relying on centralized cloud services.

Edge AI Growth

The trend of deploying AI on local devices is known as Edge AI.

According to Grand View Research, the Edge AI market was valued at $24.9 billion by the end of 2025, with projections suggesting it will grow to $29.9 billion in 2026 and exceed $118 billion by 2033.

This growth is fueled by the rise of Internet of Things (IoT) technologies, which drive demand for real-time data processing and AI automation across various sectors. Additionally, there is a growing emphasis on data privacy and edge computing.

Moreover, CoinShares analysts recently reported that 20% of Bitcoin miners have capitulated as declining revenues challenge the industry, pushing miners to adapt to AI demands.