Bitcoin’s Decentralization Crisis: Two Mining Pools Now Dominate Global Hashrate

Bitcoin's foundational promise of decentralization faces its toughest test yet as mining power consolidates into dangerously few hands.

Hashrate Hegemony Emerges

The network's security model—once distributed across thousands of independent miners—now hinges on just two colossal mining pools controlling the majority of global computational power. This isn't theoretical risk; it's mathematical reality playing out in real-time across the blockchain.

Centralization Creep Accelerates

Market forces relentlessly push smaller operators toward extinction while the giants expand their dominance through sheer economies of scale. The irony? Bitcoin was supposed to escape exactly this kind of financial consolidation that traditional bankers perfected over centuries.

Network Security at Crossroads

Every percentage point of additional concentration pushes the network closer to theoretical attack vulnerabilities—the very scenario Satoshi Nakamoto designed Bitcoin to avoid. The protocol's elegant mathematics can't compensate for human tendencies toward consolidation and control.

Wake-up call for purists who still think crypto mimics Wall Street's worst habits while pretending to be revolutionary. Sometimes the revolution just installs new oligarchs.

What This Means For Bitcoin’s Future Stability

For context, the last time this occurred was in 2014 with mining pool GHash.io. The backlash was swift, while community panic spread, developers sounded alarms, and GHash was forced to voluntarily reduce its hashrate. Still, the damage was done, and BTC plunged over 87% in the months that followed, entering one of its deepest bear markets. 

Related Reading: bitcoin Jackpot: Solo Bitcoin Miner Nets $360,000 To Beat 1 In 800 Odds

Furthermore, GHash faced relentless DDoS attacks, intense scrutiny from maxis, and eventually shut down in 2015. King argues that history is repeating itself. While the firm tried to cover up centralization risks, the truth is back in plain sight.

According to King, this brewing crisis could be the pin that pops what he calls BTC’s mega-bubble. OTC data shows that many large whales are already rotating out of BTC and preparing for an exit ahead of potential chaos. In his opinion, even Michael Saylor, long hailed as a BTC guru by maximalists, appears to be shifting his stance. 

King claims that Saylor has quietly prepared a strategy to dilute and dump his holdings and abandon his earlier promises of long-term conviction, as he knows exactly what’s coming. He also noted that the entire market structure rests on three fragile pillars: the fraudulent stablecoin inflows, retail-driven FOMO, and carefully engineered narratives pushed by the maxi cartel. Once reality pierces through these illusions and centralization risks are fully acknowledged, the collapse will be faster and more brutal than ever.

BTC Price Action

Fiege_max shared a bold assessment that there was an 85% chance that BTC had already peaked at $123,000. Currently, the analyst is increasingly confident that the top for BTC is indeed achieved. While BTC has had an incredible year of relentless uptrend, which is quite different from 2021, there was never truly a full-fledged altseason. However, the market still offered plenty of opportunities along the way. 

The analyst warned that traders should prepare for their exit and not let greed dictate their decisions, as the easy mode is behind us, and the market is entering a long period of hard mode.

Fiege_max clarifies that this does not mean the market is finished or that prices will collapse in a straight line. Instead, he urges realistic targets. He frames his commentary as a matter of perspective and objectivity on his viewpoint as a trader, and hopes it pushes the idea that the market is drawing to a close.