Cipherhoodlum on Nostr: 🔥 Mining Centralization 🔥 Bitcoin’s mining power is becoming dangerously ...
🔥 Mining Centralization 🔥
Bitcoin’s mining power is becoming dangerously concentrated, and it’s a major threat to the network’s security and decentralization. Right now, just four mining pools—Antpool, Foundry USA, ViaBTC, and F2Pool—control over 80% of Bitcoin’s hashrate. This level of dominance by a few entities increases the risk of censorship, regulatory interference, and even coordinated attacks on the network.
Antpool alone controls 24% of Bitcoin’s mining power and has deep ties to Bitmain, the world’s biggest mining hardware manufacturer. Even though it was spun off as a separate company, Micree Zhan, Bitmain’s co-founder, still owns nearly 80% of it through Great Simplicity Investment Corporation. Recently, Antpool mined seven consecutive blocks, processing over 20,000 transactions in just two hours. This level of control over block production is a major red flag.
Adding to the concern, multiple other mining pools—BTC.com, Binance Pool, Poolin, EMCD, and Rawpool—are using identical block templates to Antpool. This strongly suggests that decisions about which transactions get processed may not be as independent as they should be. If a single entity influences these pools, transaction censorship could become a serious problem.
On the other side, Foundry USA has become the largest mining pool, controlling over 30% of Bitcoin’s hashrate. It is owned by Digital Currency Group (DCG), one of the most influential crypto conglomerates in the world. With Antpool and ViaBTC still linked to China, and Foundry USA dominating mining in the U.S., Bitcoin is becoming trapped between two competing superpowers. If either China or the U.S. pressures miners to comply with political or regulatory demands, Bitcoin’s censorship resistance could be at risk.
This level of centralization also changes Bitcoin’s security model. The old rule of six confirmations being enough is no longer valid when mining power is concentrated. If Antpool, with 24% of the network, were to attempt a reorganization, a transaction would need at least 28 confirmations before it becomes more likely to be permanent than at risk. If Foundry USA and Antpool worked together, controlling over 50% of the network, a transaction would need hundreds of confirmations to be truly secure. In a worst-case scenario where the largest mining pools collude, even 1,000 confirmations may not be enough to guarantee finality.
The concentration of mining power in just a few hands isn’t just a technical issue—it’s a fundamental threat to Bitcoin’s future. If these large pools collude or come under government pressure, they could control which transactions get included in blocks, delay payments, or even reverse transactions. Bitcoin’s security model depends on decentralization, and right now, it’s moving in the wrong direction. If this trend continues, Bitcoin’s promise of financial freedom and neutrality could be permanently damaged.
Bitcoin’s mining power is becoming dangerously concentrated, and it’s a major threat to the network’s security and decentralization. Right now, just four mining pools—Antpool, Foundry USA, ViaBTC, and F2Pool—control over 80% of Bitcoin’s hashrate. This level of dominance by a few entities increases the risk of censorship, regulatory interference, and even coordinated attacks on the network.
Antpool alone controls 24% of Bitcoin’s mining power and has deep ties to Bitmain, the world’s biggest mining hardware manufacturer. Even though it was spun off as a separate company, Micree Zhan, Bitmain’s co-founder, still owns nearly 80% of it through Great Simplicity Investment Corporation. Recently, Antpool mined seven consecutive blocks, processing over 20,000 transactions in just two hours. This level of control over block production is a major red flag.
Adding to the concern, multiple other mining pools—BTC.com, Binance Pool, Poolin, EMCD, and Rawpool—are using identical block templates to Antpool. This strongly suggests that decisions about which transactions get processed may not be as independent as they should be. If a single entity influences these pools, transaction censorship could become a serious problem.
On the other side, Foundry USA has become the largest mining pool, controlling over 30% of Bitcoin’s hashrate. It is owned by Digital Currency Group (DCG), one of the most influential crypto conglomerates in the world. With Antpool and ViaBTC still linked to China, and Foundry USA dominating mining in the U.S., Bitcoin is becoming trapped between two competing superpowers. If either China or the U.S. pressures miners to comply with political or regulatory demands, Bitcoin’s censorship resistance could be at risk.
This level of centralization also changes Bitcoin’s security model. The old rule of six confirmations being enough is no longer valid when mining power is concentrated. If Antpool, with 24% of the network, were to attempt a reorganization, a transaction would need at least 28 confirmations before it becomes more likely to be permanent than at risk. If Foundry USA and Antpool worked together, controlling over 50% of the network, a transaction would need hundreds of confirmations to be truly secure. In a worst-case scenario where the largest mining pools collude, even 1,000 confirmations may not be enough to guarantee finality.
The concentration of mining power in just a few hands isn’t just a technical issue—it’s a fundamental threat to Bitcoin’s future. If these large pools collude or come under government pressure, they could control which transactions get included in blocks, delay payments, or even reverse transactions. Bitcoin’s security model depends on decentralization, and right now, it’s moving in the wrong direction. If this trend continues, Bitcoin’s promise of financial freedom and neutrality could be permanently damaged.