The rapid growth of artificial intelligence data centers is sparking controversy over its potential impact on the bitcoin network. As AI computing requires vast amounts of electricity, concerns are being raised that this will divert resources away from bitcoin mining.
According to crypto trader Ran Neuner, AI has become a significant competitor to bitcoin mining due to its high earning potential per megawatt of electricity. He pointed out that while bitcoin mining generates revenue between $57 and $129 per megawatt, AI data centers can earn up to 8 times more.
Several mining companies have already begun investing in AI businesses, citing the lucrative opportunities in this sector. Core Scientific has secured a credit line of up to $1.1 billion for AI hosting services, while MARA Holdings has submitted documents to the US SEC hinting at the possible sale of some bitcoin to advance its AI transformation.
Some industry insiders believe that if miners continue to exit the market, it could lead to a decline in hash rate and increase the risk of a '51% attack' on the network. However, others argue that the difficulty adjustment mechanism will automatically lower mining difficulty, increasing profitability for remaining miners and attracting more hash power back to the network.