tl;dr
Two major mining pools, Foundry (33.63%) and AntPool (17.94%), control over 51% of Bitcoin’s total mining power, raising concerns about centralization within the Proof-of-Work system. This concentration risks enabling a 51% attack, where controlling entities could manipulate transactions, threatenin...
Data shows that two major mining pools currently control over 51% of Bitcoin’s total mining power. Bitcoin, once celebrated as the epitome of decentralization and financial independence, now faces scrutiny due to this concentration within the Proof-of-Work (PoW) mechanism. Analyst Jacob King reveals that Foundry holds a 33.63% market share of Bitcoin’s mining hashrate, while AntPool controls 17.94%. Combined, they dominate more than half of the network’s hashrate, sparking fears about centralization in Bitcoin mining.
This dominance means that if Foundry and AntPool combine forces, they could surpass the critical 51% threshold of hashrate control. Theoretically, this opens the door to a 51% attack, where controlling pools might manipulate network transactions. Jacob King bluntly states, “Once reality sets in about how centralized, manipulated, and useless Bitcoin truly is, everything will collapse faster than ever. It’s essentially a giant game of musical chairs!” Such sentiments echo through the community, where many acknowledge that Bitcoin mining has become “extremely centralized.”
Statistician Evan Van Ness reports that three mining pools consistently hold over 80% of the global hashrate, marking the first time in over a decade that mining concentration has hit such a perilous level. This situation undermines the core principle of decentralization that Bitcoin relies upon, shaking community confidence. Experts are increasingly questioning whether PoW remains the right mechanism to underpin a global financial system given its vulnerabilities, especially the threat of a 51% attack.
If such an attack were to happen, the controlling mining entities could manipulate transaction validation, block or reverse confirmed transactions, and even enable double-spending. These actions would severely damage the integrity of the Bitcoin network, causing financial losses and eroding trust in Bitcoin as a safe-haven asset. Despite record-high hashrate and difficulty, the potential for a 51% attack adds psychological pressure to the market, amplifying concerns about systemic risk.
However, executing a 51% attack on Bitcoin demands immense infrastructure, energy, and financial resources, making it logistically difficult. Furthermore, mining pools have strong economic incentives to avoid such attacks because undermining Bitcoin’s value would also harm their own investments. Yet, the mere perception of vulnerability is enough to unsettle investors and highlight possible challenges ahead for Bitcoin’s role in the wider financial ecosystem.