Bitcoinâs big strength? Decentralization. But hereâs the harsh truth: itâs under threat, and many holders are blind to the risk.
The 51% Attack Risk:
Bitcoinâs true strength lies in its decentralization. If a single actor gains 51% of the networkâs computing power, itâs game over. This risk, the 51% attack, is what every BTC holder should be worried about. â ď¸
Mining Centralization:
Right now, the top 5 mining pools control over 80% of Bitcoinâs total hashrate. Weâre talking about the very foundation of Bitcoinâs security being controlled by a small number of entities. đą
Proxy Pools:
It gets worse. Some smaller pools are essentially proxy pools for the bigger ones. For example, Antpool doesnât just mine 20% of the blocks, it controls 30% when proxy pools are factored in. This is huge. đ§
U.S. vs China:
Of the top 5 pools, 2 are based in the U.S. and 3 in China, giving the U.S. 40% control and China 55%. Let that sink in. Itâs wild that 5 pools dominate a decentralized network. đ
Potential Risks from Governments:
These pools are regulated. Governments can pressure them to enforce policiesâlike transaction censorship. Just look at the F2Pool incident in December where a transaction was censored. Was it censorship or just a mistake? Itâs a fine line. âď¸
What Can We Do?
Decentralization needs to be fought for. Hereâs how we can help:
đ Support smaller mining pools
đ Encourage solo mining
đ Redirect hashrate to decentralized pools
đ Promote home mining, even at a small scale
The Battle for Decentralization is ongoing, but we can still change the tide. Bitcoinâs success shouldnât rest in the hands of just a few. Letâs push for a truly decentralized future.
#BTCvsMarkets #MarketRebound #USChinaTensions