US Bitcoin Mining Hub Plan Falters Amid AI Surge and Crypto Slump
Donald Trump's ambitious plan to make the US a hub for Bitcoin mining is facing significant challenges, thanks to the rapid growth of artificial intelligence (AI) technology and a prolonged downturn in cryptocurrency prices.
The AI boom has triggered a shift in focus among miners, with many converting their facilities into data centers tailored to meet the industry's growing demands. By the end of this year, public miners are expected to generate most of their revenue from AI-related activities.
According to Luxor, Bitcoin mining is currently using 18% less compute power compared to October last year, indicating a significant decline in the market's overall activity. Furthermore, the center of gravity for Bitcoin mining is shifting away from the US towards China and Russia, reversing a years-long trend.