Data shows that two large mining pools currently control over 51% of Bitcoin's total mining power.
Bitcoin has long been considered a symbol of decentralization and financial independence. However, the latest development reveals the downside of concentration within the PoW mechanism.
Can Bitcoin face a 51% attack?
According to analyst Jacob King, Foundry currently holds a 33.63% market share of Bitcoin's mining hashrate, while AntPool represents 17.94%. Together, these two pools dominate over 50% of the network's hashrate, raising concerns about centralization in Bitcoin mining.
This means that if these two Bitcoin mining pools joined forces, they would surpass the 51% threshold of hashrate control. In theory, this would open up the possibility of an attack aimed at manipulating the network.
"When reality sets in about how centralized, manipulated, and useless Bitcoin really is, everything will collapse faster than ever. It's essentially a big game of musical chairs!" Jacob shared.
Market share of Bitcoin mining pools. Source: Jacob King on X
Some community members have also openly acknowledged that Bitcoin mining has become 'extremely centralized.' Statistics from Evan Van Ness show that three mining pools often hold over 80% of the global hashrate.
Top 3 pools holding over 80% of the hashrate. Source: Evan Van Ness on X
This is the first time that mining concentration has reached such a dangerous threshold in over a decade. This has shaken the community's confidence in decentralization, which is the foundation of Bitcoin. Many experts are questioning whether the Proof of Work (PoW) mechanism is still suitable to serve as the backbone of the global financial system. Its vulnerabilities, such as the risk of a 51% attack, raise concerns about its long-term viability.
Some analysts warn that this situation could transform Bitcoin from a decentralized asset into a perceived 'risk and burden' for institutional investors. This shift could also impact the broader financial system.
If a 51% attack were to occur, the controlling mining pools could manipulate transaction validation and block or reverse confirmed transactions. This could also allow double spending, compromising the integrity of the Bitcoin network. Such a scenario would cause financial losses and destroy trust in Bitcoin as a safe-haven asset.
Although the hashrate and difficulty are currently at a record level, concerns about a potential 51% attack have added psychological pressure to the market.
Bitcoin Difficulty. Source: Blockchain.com
Experts note that executing a 51% attack on Bitcoin is extremely expensive, requiring substantial infrastructure and energy resources. This high barrier makes such an attack logistically challenging, despite the concentration of mining power.
Moreover, the economic incentives of mining pools may limit the likelihood of a 51% attack, as it could cause the price of Bitcoin to collapse. Such a collapse would directly harm those controlling the hashrate.
However, the perception that Bitcoin is vulnerable to a 51% attack can generate significant concern among investors. This fear alone is enough to heighten worries about systemic risk.
The article Experts warn that Bitcoin may face a 51% attack with mining centralization was first seen on BeInCrypto Brazil.
