Bitcoin (BTC) News – Is Bitmain’s influence on Bitcoin (BTC) mining decreasing?

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Up until last year, Bitmain had a stranglehold when it came to hardware for Bitcoin (BTC) mining. The problem was that it did not help the Bitcoin (BTC) developers and investors to achieve proper decentralization. For mining hardware, they were dependent on a single entity. That however seems to be changing slowly but surely.

Is Bitmain’s influence on Bitcoin (BTC) mining decreasing?

Recently, blockchain research Organisation published a report revealing the entities which were verifying the Bitcoin (BTC) transactions. These figures were dominated by Antpool, and also ViaBTC. All three of these miners are closely related to Bitmain. The percentage of Bitcoin (BTC) which was mined by them was over 90%. That however has now reduced to around 78%.

The good news is that the leftover market share has been captured by a non-Bitcoin (BTC) miner. It clearly indicates that the smaller Bitcoin (BTC) miners are validating much more transactions. Currently, the percentage stands at around 22%. It is assumed that in the coming few months, the percentage will increase even more.

The main aim of cryptocurrencies is to decentralized control over money. If mining control remains in the hands of a single entity, decentralization is not possible. With the increasing number of unknown cryptocurrency miners, the influence of Bitmain on the Bitcoin (BTC) mining industry is certainly decreasing. It will help the Bitcoin (BTC) blockchain achieve proper independence. As a result, it will become very easy for the Bitcoin (BTC) developers to secure the network even more.

When you look at the trend, you will realize that it is possible that the number of unknown miners increases even more.

The bit of issue up until now is that there are many mining pools which combined have 53% of the Bitcoin (BTC) computational mining power. If they collude, Bitcoin (BTC) will be in danger. On the other hand, once the number of unknown cryptocurrency minors continues to increase, the percentage will eventually go down and the risk of the 51% attack will reduce significantly. It will make Bitcoin (BTC) much more secure in the longer term. The probability of any kind of attack will decrease as well.

The 51% attacks are increasing at a rapid pace. That is why, any move towards proper security and avoidance of 51% attack probability will help the entire cryptocurrency as well as the investors.

Thus, not only the dominance of Bitcoin is decreasing but Bitcoin (BTC) is actually becoming much more secure.

About Riddhi 224 Articles
I am an electronics engineer and follow the crypto space closely.

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