logo

Bitcoin hashrate: Two mining pools control more than 50% of Bitcoin hash rate

Bitcoin hashrate Two mining pools control more than of Bitcoin hash rate

New statistics about the source of the Bitcoin hashrate revealed that more than half of the asset’s hashrate is controlled by two mining pools.

Recent data suggests that the Bitcoin network has been becoming increasingly centralized between two major mining pools. The mining pools have come to dominate the network’s hash rate after its block reward was halved on May 11. Both of these mining pools are located in China.

Bitcoin hash rate

According to data regarding Bitcoin’s pool distribution, three mining pools control the majority of the Bitcoin hashrate. These are the F2Pool, AntPool, and BTC.com, which account for 21.8, 16.0, and 15.1 percent, respectively. Both AntPool and BTC.com are part of Bitmain, meaning that Bitmain and F2Pool collectively account for 52 percent of the network’s hashrate. 

Is Bitcoin becoming centralized

Bitcoin hashrate is becoming centralized, which is a negative thing for the asset as it damages its decentralized nature. Furthermore, it gives two companies that account for over 50 percent of the network’s hashrate, significant control over the BTC network.

The centralization might have increased due to the recent Bitcoin halving event that forced many miners to close shop due to reduced profitability. The halving reduced the block reward on the Bitcoin network by 50 percent, causing loss to a lot of miners. This was evident in network statistics that showed that Bitcoin’s hashrate had seen a slight decline since its halving.

The network’s hashrate is becoming more and more concentrated in China even before the block reward halving event. A 2019 report by CoinShares claimed that “as much as 65% of Bitcoin hashpower” resided in China.

This is bad for the Bitcoin network as the Chinese government’s harsh cryptocurrency policies put these pools in danger of falling out with the government. If these mining pools are forced to shut down, the Bitcoin hashrate would see a sharp decline that might cause the network to face immense short-term network congestion. 

 

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

Related News

Hot Stories

How to Mine Vertcoin 2022 (Complete Guide)
Dogecoin price analysis: DOGE slowly fails to retrace, looks to retest $0.073 overnight?
How to Mine Safemoon 2022 (Complete Guide)
How to Mine Ergo 2022 (Complete Guide)
Uniglo (GLO), Bitcoin (BTC), Litecoin (LTC) And Elrond (EGLD) Are The Best Cryptos For Early Retirement

Follow Us

Industry News

Huobi`s crypto mogul seeks to sell his stake for $3B
Are gaming NFTs dead?
MakerDAO is “seriously” considering moving away from USD
FTX CEO unhappy as crypto firms fail to aid each other
BlackRock launches spot BTC private trust