AI Data Center "Gold Rush" Sparks Controversy: Will It Impact Bitcoin Network Security

March 16 — As electricity demand from AI data centers surges, the market is fiercely debating whether this will undermine Bitcoin mining or even threaten the Bitcoin network’s security. Cryptocurrency trader Ran Neuner said on social media that AI has become Bitcoin mining’s biggest competitor, as both rely heavily on electricity resources. He noted Bitcoin mining generates roughly $57 to $129 per megawatt-hour, while AI data centers can bring in $200 to $500 per megawatt-hour — up to eight times more than mining. As a result, more and more mining firms are pivoting to AI businesses. Neuner listed several mining companies that have embraced AI: - Core Scientific recently secured a $1 billion credit line for its AI hosting business; - MARA Holdings filed documents with the U.S. SEC, hinting it may sell Bitcoin to fund its AI transformation; - Hut 8 signed a $7 billion AI infrastructure deal with Google in December 2023; - Cipher Mining also cut its mining power to focus on AI computing. Additionally, Jihan Wu (Bitmain co-founder) is reportedly no longer mining and has moved into the AI space. Neuner argues that if miners keep exiting, a drop in Bitcoin’s hash rate will raise the risk of a “51% attack” on the network. The Bitcoin network’s hash rate is currently down about 14.5% from its October 2023 peak. However, some industry insiders disagree. Adam Back — a Bitcoin OG developer and cryptographer — noted that even if some miners switch to AI, Bitcoin’s difficulty adjustment mechanism will automatically lower mining difficulty, letting remaining miners become more profitable and drawing hash power back to the network.