China's AntPool Surges Ahead in the Bitcoin Mining Race, Challenging U.S. Dominance
The Bitcoin mining battle has reached new heights as the competition between China and the United States intensifies, with China recently reclaiming its dominance. In a recent surge, AntPool, a Chinese-based mining pool, mined nearly one-third of all newly minted Bitcoin (BTC) within a 24-hour period, showcasing a significant concentration of block production and mining rewards.
Data from mempool.space on September 22 shed light on the distribution of Bitcoin's daily block discovery across various mining companies and pools. As of the latest data available, AntPool had mined 42 out of 135 blocks, outpacing its American competitor, Foundry USA, which discovered 36 blocks.
For years, AntPool and Foundry USA have consistently maintained their positions as the dominant forces in Bitcoin mining, outstripping their competitors by a significant margin. For instance, ViaBTC, a rival mining pool, only managed to produce 10% of the blocks during this period, while F2Pool and MARA lagged even further behind. This increasing centralization within the Bitcoin mining sector has sparked concerns among industry experts, researchers, and developers, as reported by Finbold. Luke Dash Jr., a Bitcoin Core developer, even warned that the time required to confirm BTC transactions might soon extend to at least two hours, indicating that the widely accepted standard of 30 to 60 minutes could become obsolete.
Moreover, emerging research indicates that the centralization of Bitcoin mining could be even more pronounced than surface-level statistics suggest. According to a study conducted by the well-known pseudonymous Bitcoin researcher b10c (@0xb10c) in April, AntPool appears to exert a dominant influence that goes beyond simple block discovery. The investigation, conducted alongside the Mononaut analyst team, revealed evidence suggesting that at least six Bitcoin mining pools share both a custodian and block template with AntPool. These findings hint at the possibility of undisclosed agreements that significantly increase the concentration of mining power, further centralizing Bitcoin mining operations.
AntPool is headquartered in Beijing and is a subsidiary of BitMain, the world's largest Bitcoin mining equipment manufacturer. On the other hand, Foundry USA, backed by the Digital Currency Group (DCG), has established itself as the leader in the long-term Bitcoin mining race. Over the past three years, Foundry USA has mined 41,647 out of over 160,000 blocks, accounting for more than a quarter of all BTC mined during this period. AntPool follows closely, with a 20.5% share.
Despite the fierce competition, both AntPool and Foundry USA require miners to go through a Know Your Customer (KYC) process, limiting participation in accordance with each country's regulations. While Foundry USA has maintained its lead in the long-term mining scene, China's AntPool has steadily expanded its influence in the short term, signaling an escalating rivalry between these two economic superpowers.
From an investment perspective, the growing centralization of Bitcoin mining has the potential to challenge the cryptocurrency's decentralized ethos, which could, in turn, impact the price of BTC on the market. As the tug-of-war between the United States and China intensifies, the balance of power in the Bitcoin mining industry may significantly influence the future of cryptocurrency on a global scale.