Bitcoin Hashrate Enters Uncharted Territory Amid AI-Driven Mining Shift
Bitcoin's network hashrate is experiencing its first sustained bear market according to Twenty One Capital CEO Rapha Zagury. The shift may reshape mining economics as operators increasingly compete with artificial intelligence (AI) and high-performance computing for power and infrastructure.
Zagury pointed out that Bitcoin's hashrate approached 1.3 zettahashes per second late last year before beginning a gradual decline, making it the longest period below a hashrate record without recovery. This matters because rising network hashrate increases competition between miners, while falling hashrate allows surviving operators to capture a larger share of Bitcoin production.
The current downturn is distinct from 2021's China mining crackdown when mining machines largely moved to other jurisdictions and eventually came back online. Instead, AI is pulling power away from bitcoin mining, potentially boosting economics for miners that stay committed.