Cryptocurrency exchange, BitMEX analysts warn of increased centralization in Bitcoin mining, with one organization owning 47% of the network’s hashrate from nine main pools.
This disclosure arises from a user known as Mononaut on X, who highlighted the accumulation of bitcoins from famous pools like AntPool, F2Pool, Binance Pool, and others by an unknown custodian, while also controlling entry addresses for ULTIMUSPOOL and 1THash, and getting awards from Luxor.
Alex Bergeron, a cryptocurrency specialist, underlined the high degree of mining centralization in Bitcoin’s network. Despite income swings, miners haven’t capitulated following the recent block reward halving, citing CryptoQuant CEO Ki Young Ju.
The ramifications are enormous, with BitMEX experts noting that a mining pool needs a substantial reserve (400 BTC for 50% hashrate control) for a high likelihood of surviving over a year. Even for a 5% control, a pool requires 500 BTC.
These trends highlight a fundamental challenge in Bitcoin’s decentralization ethos, spurring discussions on minimizing centralization risks in mining operations.
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