Antpool and Foundry Dominate the Crypto Industry
Date: 2023-11-25 Author: Dima Zakharov Categories: BUSINESS
Dominance in Crypto Mining
Antpool and Foundry have emerged as dominant players in the cryptocurrency mining industry, collectively owning a substantial 53.4% share of the global hashing power. This concentrated control has sparked worries among experts regarding the decentralization of cryptocurrencies.
Increasing Hashing Power
Recent analytics indicate that Antpool has outpaced its competitor, significantly expanding its hashing capabilities. According to Bradley Park, a Web3 analyst from CryptoQuant, "China is actively engaged in mining ahead of the approval of a Bitcoin ETF."
Competition Amid Bitcoin Halving
With the approaching Bitcoin halving, heightened competition between China and the USA in mining performance is anticipated. This is due to the expected rise in the cost of BTC production, stemming from increased electricity expenses and mining complexity.
Varied Expert Opinions
While some view the halving of miner rewards as optimistic for BTC prices, others argue it depends on major central banks accelerating M2 money supply growth. Concerns also exist that in the pursuit of dominance, certain companies might compromise Bitcoin's network decentralization.
Impact of Rising Mining Difficulty
Lucy Hu, a senior analyst at Metalpha, predicts that the recent surge in prices and the impending halving will lead to the dominance of advanced setups like Antminer S21. This trend favors companies equipped with the latest mining hardware.
Miner Reserves and Predictions
CryptoQuant data indicates that miner BTC reserves have almost returned to early 2023 levels, notably showcased by Antpool. Hu reassures, "Miners are expected to sell just enough BTC to sustain their business operations until BTC ETFs are approved."
