Bitcoin mining is one of the most lucrative businesses today. It is dominated by Chinese capital. But Beijing’s supremacy in the field of cryptomonies, is not reduced to the power of hash, but also to the Bitcoin mining pools.
According to studies, almost all Bitcoin mining pools are of Chinese origin. The research comes from Bitcoin.com. It should be noted that this is the first time these data have come to light.
Previously, access to this information was extremely complex. However, it has now been possible to determine precisely, the study explains, where 99% of the mining pools come from, from the legendary Slushpool to the more recent Lubian.com.
Chinese dominance in mining pools is absolute
As is known, Bitcoin mining is dominated by farmers from the People’s Republic of China. In that nation, 65% of Bitcoin’s hash power is concentrated, according to data from Cambridge University’s Centre for Alternative Finance.
Although the trend is for this Asian dominance to thaw, the percentage is still huge when compared to the United States, which is the second largest hash power and is less than 10 percent.
Now, according to the data mentioned above, Bitcoin mining pools are also part of the Chinese monopoly on the process of generating digital currencies. Only one mining pool, the study explains, is not Chinese. It is Slushpool, which is owned by a firm in the Czech Republic.
Another important fact is that many of the new Bitcoin mining pools occupy large spaces. For example, 58coin&1thash, recently launched in 2019, covers 8.2% of the world’s miners.
In China, virtually all of Bitcoin’s mining pools are located in China.
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Competition that expands
But if from the outside you can see how China has a monopoly on mining pools, there is also data showing expansion to other countries. For example, Lubian, one of the Bitcoin mining pools that recently surprised all the competition by announcing its start of operations in Iran.
The importance of this pass is that, while there may be a process of decentralization of Bitcoin mining activity, much of it may be with Chinese capital. Lubian’s reasons for migrating to Iran are due to the low cost of electricity, as well as the recent authorization by the Persian authorities.
Finally, although as explained the data show some certainty towards a deconcentration of the mining activity, this does not happen in terms of the mining groups. Chinese capital in this territory seems to be indisputable for Western companies.
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Concentration within the monopolies themselves
As if the concentration of Bitcoin Code mining pools in China were not enough, there is also a dominance of a few groups within China. These are the 4 giants, F2Pool (16.68%), Poolin (12.50%), BTC.com (11.48%) and Antpool (10.46%).
Between these 4 groups, they dominate 51% of the mining of all Bitcoin blocks. The other 49% is split between the rest, of which Huobi.pool and 58coin&1Thash share more than 16%.
Despite the decentralized nature of the crypto currency trade and its freedom of possession, their generation tells a very different story. In this, as in all traditional businesses, a small group is responsible for almost all the cake.