BitMEX: 47% Bitcoin Hashrate Centralization Warning

IndustryTrends

BitMEX analysts have raised the alarm over the centralization of Bitcoin mining, with one entity reportedly controlling 47% of the network's hashrate.

This centralization stems from the entity's control over coinbase outputs from nine major mining pools, including AntPool and F2Pool.

A substantial reserve of 400 BTC is needed for a mining pool to have a high chance of survival and control over 50% of the hashrate for a year.

 The centralization is attributed to mining pools' efforts to eliminate revenue variance, making large balance sheets essential for absorbing potential losses.

 The situation poses a significant challenge to Bitcoin's foundational principle of decentralization, sparking discussions on how to mitigate these centralization risks.

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