Mining pools take another step towards consolidation, partnering with BitDeer

14 Dec, 2018
by Arthur Sillers
Analysis
Mining pools take another step towards consolidation, partnering with BitDeer

According to Bitcoin Exchange Guide, BitDeer has announced a partnership with arguably the world’s most significant coin mining pools BTC.com and AntPool, uniting them into an increasingly monopolized mining scene through their power-sharing platform.

While crypto mining was supposed to the be the great democratizing and self-regulating basis behind cryptocurrency, with competition ensuring that no one has control over Bitcoin as a whole. Supposedly, basic economics would mean that Bitcoin mining would never be monopolized, and it would stay a decentralized currency with no individual gaining control over it.

Recently, BCH’s contentious hash war has been blamed for tanking the market as whole. The hash war was a contested hard fork and a battle fought over the future of Bitcoin Cash played out over huge mining pools, including significantly by BTC.com (the very mining pool which is now partnered with AntPool through BitDeer) poised against CoinGeek, which is run by Craig Wright as an individual.

The results of the hash war and its effects on the market have been examined thoroughly, but no one is pointing to a future in which mining couldn’t be used this way again. Instead, mining pools continue to consolidate, and while services like AntPool ostensibly allow individuals a greater ability to buy into them, there is clearly a difference between temporarily renting mining power and having executive control over it, and as seen in the hash war, there aren’t norms against this type of executive decision making.

There isn’t much sense in thinking that mining will not continue to centralize, and as it does so, unless crypto developers can recreate a structural competitive aspect to mining itself, crypto itself will continue to centralize as well.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Read more about: Mining

Poll

Is mining monopolization a real problem for adoption?

(3 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage