AI may beat bitcoin in decentralisation, study finds

Bitcoin mining decentralisation is facing a shift while AI decentralisation may be accelerating in the opposite direction, according to Galaxy Research. Galaxy Research Head Alex Thorn said Bitcoin mining is becoming more centralised over time, while artificial intelligence could move toward a more distributed model.

Bitcoin vs AI decentralisation

Bitcoin mining decentralisation has changed significantly since its early days. Initially, individuals could mine Bitcoin using personal computers. Today, the process requires specialised ASIC machines and large-scale mining farms.

Thorn said, “Bitcoin mining began decentralised" but has since become concentrated due to high costs and infrastructure demands. This trend raises concerns about whether Bitcoin mining decentralisation can be maintained in the long term.

In contrast, AI decentralisation could increase as technology evolves. Alex Thorn explained that artificial intelligence started in centralised systems, relying on massive data centres and cloud computing.

He added, “AI may follow the opposite path", which he explained by describing how data shortages and memory constraints will force researchers to develop open-source solutions. The new system enables users to operate models on their own devices, which eliminates their need to connect to remote servers.

The expansion of edge computing technology requires organisations to adopt AI decentralisation as a necessary step forward. Edge AI enables models to operate on devices without needing to access centralised cloud platforms.

The global edge AI market will increase from $25 billion in 2025 to $119 billion by 2033, according to Grand View Research. The market expansion occurs because of IoT device growth and the need for immediate data processing together with heightened data privacy requirements.

Geographic distribution of Bitcoin mining decentralisation continues to progress despite existing centralisation forces. Mining operations in the United States have shifted to Paraguay and Ethiopia because KuCoin reported that energy expenses have risen.