Bitmain’s Mining dominance was concern earlier this year, and could jeopardize Bitcoin.
The Chinese mining company was 9% away from controlling share needed to stage a 51% attack.
Although there has never been a consensus attack on Bitcoin, other Proof-of-Work (PoW) networks have been affected, for example: Verge (XVG) has had two confirmed attacks this year.
When GHash touched above 50% of the BTC network back in 2016, administrators quickly requested miners to switch to other mining pools.
When Bitmain controlled 42% of the network, the company launched a promotional ‘zero-fees’ offer for new miners joining Antpool.
About 2 months ago, the chances of the Bitmain hash rate increasing by an additional 9% seemed a very real possibility, but a total hash rate increased by a further 4,000 TH/s, during this period, suggesting competitors stepped up efforts and took a larger stake of the BTC network.
Bitmain was about to become the Mining king of Bitcoin, and that is not good for Cryptocurrency because decentralization factor is a real Value for that type of technology, and a good reason for standing out of fiat (Government Money).
So, if suddenly a company begins to have a control of most mining hash rate, cryptocurrency loses it’s most intrinsic value.
Fortunately, recently Bitmain hashrate fell about 10%, and now needs 18% more of the hash rate to dominate Bitcoin, double what it needed earlier this summer.
Data collected over the last seven days by Coin Dance shows Bitmain’s two mining pools, Antpool and BTC.com, experienced a collective 9% drop.
In late June, they made up 42% of the network’s hashing power, but at the time of writing, Antpool makes up 13.4% with BTC.com at 19.6%. This gives Bitmain a combined hash rate of 33%.
Bitmain’s declining hash power coincides with its efforts to expand overseas.
The company announced on Monday it was building a $500m blockchain data center and mining facility in the town of Rockdale, just north of Austin, Texas.
The company’s co-CEO, Jihan Wu, is reportedly planning to host an IPO at the end of September; mooting the possibility of Hong Kong as a venue.
Bitmain is valued at $12bn after a pre-IPO funding round in early July. High profile investors included the Chinese tech company and WeChat operator, Tencent, as well as Japan’s Softbank, which holds a 15% stake in the taxi-app, Uber.
ViaBTC, a rival mining pool principally made up of former employees from Tencent, has also surpassed Antpool to become the second largest mining pool in the BTC network, today.
Data collected from the past 24 hours shows Antpool makes up 13.89% of the hash power; ViaBTC is at 15.97%, a 2% lead.
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