Mining firms' AI pivot sparks debate on hash rate vs. profitability

The shift by Bitcoin mining companies toward the AI infrastructure business could pose a serious threat to network security, Capriole Investments founder Charles Edwards pointed out on X. He projected that for major mining firms, the share of revenue from mining is expected to plummet from the current 90% to the 30% range within the next two to three years. Edwards also expressed concern that the hash rate, the foundation of BTC's security, is rapidly declining ahead of the threat from quantum computing, and that many miners have halted the introduction of new mining equipment. In response, Blockstream CEO Adam Back argued that if the BTC hash rate falls, the profitability for remaining miners increases, eventually reaching an equilibrium between mining profits and AI conversion profits. He added that higher mining profitability would lead to less selling by miners, which could in turn create a virtuous cycle that drives up the price of BTC.