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Wednesday, August 30, 2017

Bitmain's Mining Monopoly Compromises Bitcoin's Decentralized Nature

Bitmains Mining Monopoly Compromises Bitcoins Decentralized Nature


Bitmain must be regarded as the most influential company in the Bitcoin ecosystem based on their processing power, but does than mean they have the power to manipulate the market?

Allegations have been levied that the recent hard fork into Bitcoin Cash was a move by Bitmain’s leader Jihan Wu to undermine Bitcoin, although he has denied this. Mining centralization seems to be a real thing, and this could be hurting Bitcoin’s claim of being governed by no one.

There was a time when mining Bitcoin was anyone’s game, and people using their home computers would truly spread the wealth, and thus the power across a large user base.

However, as the difficulty has risen, professional mining groups with specialized computer chips emerged and formed these groups - or pools - mostly in China, to dominate the creation of the digital coin.


Full story at http://bit.ly/2wJYDhd


Source: CoinTelegraph


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