Antpool’s 7-Block Streak Raises Fears of Bitcoin Mining Centralization

Bitcoin mining centralization concerns have resurfaced with AntPool, the second largest BTC mining pool.

On May 17, Antpool drilled seven consecutive blocks between elevations 843,893 and 843,904 in one hour and thirty-eight minutes.

AntPool mines 7 consecutive blocks

During this period, the mining pool confirmed more than 20,000 transactions and earned 23 BTC-21.875 BTC in mining rewards and 1.283 BTC in payouts.

This impressive influx has caught the attention of the crypto community, with major pools such as Antpool and Foundry USA emerging. These two mining pools control about 50% of Bitcoin's hashrate, raising the concern of centralization. For context, Foundry USA mined the block before the AntPool stream and the two blocks immediately after, resulting in ten consecutive blocks mined by these two pools in one day.

Read More: Top Cryptocurrency Mining Pools To Join 2024

Bitcoin developer Luc Dashjar has previously warned of the dangers of dominance by large mining pools. Such centralization threatens Bitcoin's decentralized nature, potentially leading to censorship and regulatory issues. Crypto analyst TOBTC also shared similar concerns.

“This trend toward centralization, driven by economies of scale, allows these pools to monitor transactions, as seen in F2Pool's compliance with OFAC sanctions. “Such a concentration of power poses an existential threat to Bitcoin's decentralized nature and its fundamental principle of trust,” TOBTC said.

Meanwhile, the current economic reality makes it challenging for smaller miners to compete, so the dominance of these pools is hardly surprising. According to banking giant JMorgan, hashrate and power consumption on the BTC network have pushed the average mining cost to $45,000.

Moreover, the recent regulatory oversight may increase the pressure on Bitcoin miners. Bitcoin mining is now seen as a national security issue in the US. President Joe Biden recently announced that China-backed MineOne Partners Ltd. They ordered him to stop building a crypto mine in Wyoming and sell his property.

Read More: Making Passive Income From Crypto Mining: How To Get Started

Meanwhile, other countries are concerned about energy consumption. Venezuelan authorities recently announced plans to disconnect all crypto mining farms from the power grid. Similarly, the Norwegian government is focused on regulating data centers and limiting energy use for Bitcoin mining.