The decrease in Bitcoin hash rate threatens decentralization amid miner migration

HodlTheDoor · 2026-02-14T01:20:03+00:00

The Bitcoin network faces significant challenges to its decentralization and security due to market changes in cryptographic computing. A 38% drop in BTC price has reduced mining profitability, threatening network infrastructure. Many miners have redirected resources to AI processing, decreasing network hash rate by 12%, which compromises security and increases centralization risks. This shift may lead to a reliance on transaction fees for network security, undermining Bitcoin's decentralized principles.

HodlTheDoor

2026-02-14 01:20:03

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The Bitcoin network is facing serious challenges to its decentralization and security caused by systemic changes in the cryptographic computing market. A 38% drop in BTC price since October has led to a critical reduction in mining profitability, threatening the network infrastructure.

Bitcoin Price and Mining Profitability Reach Lowest Levels

According to NS3.AI, historically low mining revenues have forced many operators to operate at a loss. The current BTC price is $69,000, with a 4.19% increase over the past 24 hours. However, this is not enough to restore profitability for miners tied to high-cost electricity contracts.

Massive Reorientation of Capacity Toward AI Computing

Faced with unacceptable conditions, a significant portion of mining farms has shifted their computational resources to processing AI models, where profit margins remain much higher. This transition reduces the total computing power dedicated to securing the blockchain: the network hash rate has dropped by 12%, creating a direct threat to protocol security.

Long-term Risks to Decentralization and Network Stability

The reduction in active miners and their computational power leads to mining concentration in the hands of large operators capable of sustaining losses. This undermines the fundamental principle of Bitcoin decentralization, making the network more vulnerable to coordinated attacks. Additionally, experts fear that in the long run, the network will become more dependent on transaction fees to maintain adequate security levels, as block rewards continue to decrease. Thus, the tectonic shift in the distribution of computational power directly threatens Bitcoin’s decentralization and stability as a decentralized system.

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