A new debate has emerged over whether a continued shift by Bitcoin miners toward artificial intelligence could impact the network’s security and its role as a store of value.
While some argue that miners leaving the network would leave it more susceptible to a “51% attack,” others argue it will simply trigger the Bitcoin network to rebalance itself as designed, making it enticing for miners again.
“AI has killed Bitcoin forever,” crypto trader Ran Neuner said on Sunday, arguing that it has become Bitcoin mining’s biggest competitor because both industries compete for electricity.
“AI is willing to pay much more for it,” he added, explaining that Bitcoin (BTC) mining revenue per megawatt is around $57 to $129, but AI data center revenue per megawatt is up to eight times higher at $200 to $500 for the same electricity, which is why miners are starting to pivot.
Earlier this month, Core Scientific secured up to $1 billion in credit for AI hosting, MARA Holdings recently filed with the SEC signaling its intent to sell some of its BTC as part of an AI pivot and Hut 8 signed a $7 billion AI infrastructure agreement with Google in December, argued Neuner.
Meanwhile, Cipher Mining cut its hashrate to focus on AI compute, and Bitmain cofounder Jihan Wu has stopped mining and pivoted to AI, he added.
“So if I were a miner, it wouldn’t be a tough decision. And that’s why every day more and more miners are leaving the network.”
It sounds like a doomsday scenario for Bitcoin, but not everyone agrees.
Bitcoin pioneer and cryptographer Adam Back argued that difficulty adjustments would only force the least efficient miners out, and profitability would improve.
“What happens to Bitcoin is simple: tick tock, next block! Difficult adjusts downwards, the least efficient and AI switchers move out, and Bitcoin mining profitability converges to AI profitability. QED.”
“If AI outbids miners for electricity, miners just turn off until the difficulty adjusts and it’s profitable again, that’s literally how Bitcoin works,” added investor Fred Krueger.
Bitcoin energy demand is variable
However, Neuner…
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