The centralization of Bitcoin mining has been criticized following recent events within the network. The hash power of two large mining pools, Foundry USA and AntPool, exceeds more than 51% of Bitcoin's total hash power. Foundry possesses about 33.63%, and AntPool has about 17.94%.
This distribution has led to speculation that there may be a 51% attack on the Bitcoin blockchain. Such an incident would allow a majority mining group to manipulate the transaction order of double-spend coins. Such attacks are both expensive and uncommon; however, the mere potential has drawn the concern of analysts and market participants.
These fears increased as the Foundry mined eight consecutive blocks, and this is an uncommon occurrence. Although the analysts think that it is unlikely that an attack will happen, the event highlights that the network is more centralized. The centralization of control can be seen as a lack of trust, especially after the 51% attack on Monero (XMR) a few days ago.
Other than a heightened concentration in mining, specialists have noticed changes in network performance. Empty blocks are becoming common which indicates that the miners are not processing transactions. Such a trend could be linked with operational priorities or variations in network demands.
The cost of transactions has also reduced; recent prices are at one satoshi per vByte, indicating that block space is in less demand. Lower fees, as such, positively impact users but are very often indicative of a reduced level of activity in the network that can lower miners' revenues and medium to long-term network security.
Other analysts are convinced that this concentration of the hash power and its low network usage may hinder trust in the Bitcoin infrastructure. These developments have given rise to larger debates on the future of decentralization of mining.
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The value of Bitcoin is about to reach a crucial point; it has come down to about $113,000 after hitting an all-time high of $124,457. The second key support is at 110,530. Any fall past this level would be followed by further losses to $107,000 or even $100,000.
Market conditions are volatile. Although miners do not have a direct financial interest in damaging the network, a rise in risk perception after Monero was hacked still affects the mood. Ongoing changes in mining distribution and price levels will likely determine the future course of the market reaction.