‘Bitcoin security is bleeding out’ – Why BTC miners are pivoting to AI
Bitcoin [BTC] miners are in a decent spot as market misery deepened to ranges final seen in 2019. The ripple results may have an effect on Bitcoin community safety.
In line with Charles Edwards, founding father of enterprise agency Capriole Investments, BTC miner transaction charges have fallen to a 7-year low regardless of the crypto asset’s worth rising 13x. For him, this is among the causes miners are pivoting to synthetic intelligence (AI).
Miners’ complete income is dictated by transaction charges and block rewards (that are sliced each 4 years in what is known as halving cycles). With declining block rewards, transaction charges have lengthy been anticipated to fill within the income gaps to maintain miners afloat.
Nevertheless, the development may pose a threat to community safety, Edwards cautioned.
It’s no surprise all of the miners are leaving for AI. What does this imply for Bitcoin safety going ahead if this development holds?
Bitcoin miner income drops to $30M
The Bitcoin worth has additionally declined by half from +$126K in late 2025 to above $60K in 2026. This devaluation has impacted miners too. As of July, the day by day block subsidy has dropped under $30 million whereas transaction charges have been at $210K.
This was a twofold drop from mid-2025 day by day miner revenues of $60 million. In truth, when zoomed out to the 2024 document of $95 million in income, the present ranges have been thrice decrease.
As such, the crypto winter and contracting mining revenues have put BTC miners in a decent spot. In line with MacroMicro, the typical price of mining BTC was about $70.5K as of the 4th of August. In different phrases, on the present worth of BTC at $64.7K, it’s costlier to mine BTC for smaller gamers.
Worse nonetheless, in 2026, the miner misery has prolonged for 250 days and counting. In line with Edwards, this was 3x longer than the 2022 bear market (91 days) or 2018 (63 days). He added that the market state of affairs was accelerating capital in the direction of AI.
Bitcoin’s safety is bleeding out. The present miner capitulation has been going for 3X longer. That is the results of each single public Bitcoin miner pivoting to AI.
As miners shift focus to AI, the drop in hash charge means a better threat of the 51% assault. However the downturn might be seen as historic patterns related to bear markets.
However there’s a contrarian take.
Final month, MARA CEO Fred Thiel warned that low transaction charges income was Bitcoin’s ‘basic problem’ after it did not turn into a cost. In line with him, Bitcoin mining shall be powerful after 2028’s halving cycle, slashing rewards from 3.125 BTC to 1.5625 BTC.
Moreover, upcoming quantum dangers and Bitcoin’s gradual response to upgrades imply one other spherical of safety FUD may dent market sentiment.
Total, BTC is dealing with a double safety risk from AI and quantum pc developments. Whether or not these will devalue it additional in the long run stays unclear.
Closing Abstract
- BTC miner misery has been 3x longer in 2026 in comparison with historic patterns
- This has accelerated the AI pivot, which may improve safety threat to the Bitcoin community
