Bitcoin’s Decentralization Crisis: Mining Pools Now Control Over 51% of Network Hashrate

Bitcoin's foundational promise faces its greatest test yet as mining concentration hits dangerous levels.

The Hashrate Heist

Mining pools have quietly amassed over 51% of the network's computational power—crossing the threshold that Satoshi Nakamoto himself warned could undermine the entire system. This isn't theoretical anymore; it's happening right now.

Centralization Creep

Three major pools now control enough hashrate to potentially coordinate attacks that were once unthinkable. They could reverse transactions, double-spend, or freeze out smaller miners. The very antithesis of Bitcoin's decentralized ethos.

The Mining Industrial Complex

What started as bedroom operations have evolved into billion-dollar industrial enterprises. The barrier to entry? Sky-high. The energy requirements? Astronomical. The decentralization? Questionable at best.

Wall Street's already placing bets on which pool will eventually become 'too big to fail'—because nothing says 'decentralized revolution' like creating new financial institutions that look exactly like the old ones.

TLDR

• Foundry and AntPool mining pools now control over 51% of Bitcoin’s total hashrate, creating potential attack risks
• This represents the highest mining concentration in over a decade, raising decentralization concerns
• A 51% attack could enable transaction manipulation and double-spending but would cost around $1.1 trillion to execute
• Bitcoin price declined toward $110,530 support level while facing broader macroeconomic pressures
• Empty blocks are increasing, suggesting miners prioritize speed over transaction fees and network efficiency

Two major Bitcoin mining pools now control more than 51% of the network’s total computing power. This concentration has sparked concerns about potential attacks and the future of Bitcoin’s decentralized structure.

Foundry currently holds 33.63% of Bitcoin’s mining hashrate. AntPool controls another 17.94% of the network’s power. Together, these two pools command over half of all bitcoin mining activity.

This marks the first time mining concentration has reached such levels in more than a decade. The development has raised questions about Bitcoin’s Core principle of decentralization.

Mining Concentration Reaches Critical Threshold

Analyst Jacob King highlighted the concentration issue on social media platforms. He noted that the two pools could theoretically combine their power to manipulate the network.

Two Bitcoin mining pools now control over 51% of the network. The door is wide open for a 51% attack, which could completely destroy BTC.

For context, the last and only time this happened was 11 years ago, in 2014, with GHash,io. They had to voluntarily reduce their hashrate to… pic.twitter.com/SMLpVrGGdG

— Jacob King (@JacobKinge) August 19, 2025

Statistics from other analysts show that the top three mining pools frequently control over 80% of Bitcoin’s global hashrate. This level of concentration has become a growing concern within the cryptocurrency community.

A 51% attack WOULD allow controlling parties to manipulate transaction validation. They could potentially reverse confirmed transactions or enable double-spending scenarios.

Such an attack could compromise the integrity of the Bitcoin network. It would likely cause financial losses and damage confidence in Bitcoin as a secure asset.

Foundry USA recently mined eight consecutive blocks in a row. This unusual event has been seen as evidence of growing centralization risks within the network.

The rise in empty blocks has also become a concern. These blocks contain no transactions and generate minimal fees for miners.

Economic Barriers and Market Impact

Experts estimate that executing a 51% attack on Bitcoin would cost approximately $1.1 trillion. This massive expense creates a strong economic barrier against such attacks.

The high cost involves purchasing substantial infrastructure and energy resources. These requirements make a 51% attack logistically challenging despite the mining concentration.

Economic incentives may also discourage such attacks from mining pools themselves. A successful attack could cause Bitcoin’s price to collapse, harming the attackers’ own investments.

However, the mere perception of vulnerability has already affected market confidence. Investors are showing concern about the systemic risks posed by centralized mining power.

Bitcoin’s price has declined toward the $110,530 support level. Technical indicators show bearish momentum in the short term.

If the price holds above $110,530, analysts believe a rebound toward $120,000 remains possible. A breakdown below this level could signal further declines toward $107,000 or $100,000.

Macroeconomic factors are also influencing market sentiment. Federal Reserve policy shifts and concerns over new stablecoin legislation have added pressure to crypto markets.

The newly passed Genius Act stablecoin bill has raised fears about potential withdrawals from the stablecoin sector. These concerns create additional challenges for Bitcoin and other cryptocurrencies.

Bitcoin’s hashrate and mining difficulty currently sit at record highs. Despite these technical strengths, centralization concerns continue to weigh on market psychology and investor confidence.