China Overshadows U.S. in Bitcoin Mining, Sparking Centralization Concerns

The competition in Bitcoin (BTC) mining has escalated recently, with China taking the lead over the United States.

AntPool, a major mining pool, accounted for nearly one-third of all newly mined BTC in the past 24 hours, significantly concentrating block production and rewards.

Data from mempool.space as of September 22 showed that AntPool mined 42 out of 135 blocks, while Foundry USA followed with 36. These two mining leaders have maintained a considerable gap over their competitors, with ViaBTC mining just 10% of the blocks and F2Pool and MARA contributing even less.

This centralization in Bitcoin mining has raised concerns among experts, researchers, and developers. Bitcoin Core developer Luke Dash Jr. recently warned that transactions may require at least two hours to be considered secure, making current standards of 30 to 60 minutes seem outdated.

Additionally, a study by an annonymous analyst suggests that the centralization issue might be more severe than initial data indicates. The research, along with an investigation by Mononaut, revealed that at least six mining pools share the same custodian and block template as AntPool, hinting at hidden agreements.

AntPool, based in Beijing, is a subsidiary of BitMain, the largest manufacturer of Bitcoin mining equipment. In contrast, Foundry USA, which leads in long-term mining efforts, has mined 41,647 blocks—over a quarter of all BTC issued in the last three years, compared to AntPool’s 20.5%. Foundry USA also requires miners to complete a KYC process, ensuring compliance with regulatory standards.

As the mining race heats up between the U.S. and China, the centralization of Bitcoin mining could pose risks to the cryptocurrency’s value proposition, potentially influencing BTC’s market price.