A recent report by Coin Metrics highlights the growing centralization risk in Bitcoin mining. Two major mining pools have controlled over 50% of Bitcoin’s hash rate since January 2023, raising concerns about centralization. Despite discussions about spot ETFs subsiding, the hash rate has consistently grown, reaching over 400 EH/s this month. The mining difficulty has also reached a new all-time high. The upcoming halving event has led American miners to ramp up their production efforts and deploy modern machinery. The anticipated launch of the Antimer S21 mining machine in 2024 will further complicate the mining landscape. The concentration of hash rate in a few major mining pools is seen as a major concern for the Bitcoin community. Foundry and Antpool have collectively controlled over 50% of the hash rate, with Antpool steadily increasing its share. Overall, the report highlights the complexity and risks involved in Bitcoin mining.
AI Sentiment: Negative