Bitcoin News Today: Bitcoin’s Decentralization Ideal Under Threat as Two Pools Near 51% Control

Bitcoin miners have raised alarms over the growing risk of a 51% attack on the network, days after Monero experienced a similar incident. Current data indicates that two major mining pools, Foundry USA and AntPool, collectively control over half of Bitcoin’s total hash power, reaching levels of centralization not seen in over a decade [1]. This concentration of power has reignited concerns about the security and decentralization principles that underpin the cryptocurrency. Foundry USA, for instance, recently mined eight consecutive blocks—a rare event that underscores the imbalance in hash distribution and has intensified scrutiny around potential network vulnerabilities [2].

The theoretical risk of a 51% attack arises when a single entity or group controls more than half of the network’s mining power, allowing them to manipulate block validation, reverse transactions, or enable double-spending. While executing such an attack is estimated to cost up to $1.1 trillion—a sum arguably self-defeating for any rational actor—the mere possibility has already shaken market confidence [2]. This centralization contradicts one of Bitcoin’s foundational goals: to remain decentralized and resistant to manipulation. The situation has been exacerbated by an increase in "empty blocks," which contain no transactions and generate minimal fees, further reducing miner revenues and network efficiency [1].

The timing of these developments is particularly concerning for Bitcoin’s price, which has fallen from a record high of $124,000 to around $113,000. It now approaches a critical support level near $110,530, where traders are closely watching for signs of a potential bounce or deeper decline [2]. Technical indicators, including the relative strength index and 20-day moving average, show bearish momentum. If the price breaks below this key threshold, further declines toward $107,000 or even $100,000 could follow [1]. Meanwhile, broader macroeconomic factors, such as shifts in Federal Reserve policy and the newly passed Genius Act stablecoin bill, have added further downward pressure on the cryptocurrency market [3].

Beyond technical and market factors, the growing centralization of Bitcoin mining raises questions about the long-term viability of the Proof-of-Work (PoW) model. Critics argue that the PoW mechanism, while historically secure, may no longer be suitable as the backbone of a global financial system if mining power continues to concentrate in the hands of a few entities. This trend could shift perceptions of Bitcoin from a decentralized asset to a perceived "risk and burden," particularly for institutional investors [2]. The challenge for the Bitcoin community is to balance the need for network security with the principles of decentralization that have defined the cryptocurrency since its inception.

The implications of this mining centralization extend beyond Bitcoin itself. The broader cryptocurrency ecosystem faces similar risks, particularly as the U.S. government and other national actors explore the strategic use of digital assets as reserve holdings. With governments worldwide accumulating Bitcoin and other cryptocurrencies for long-term strategic purposes, the interplay between institutional adoption and decentralized mining dynamics will be critical in shaping the future of digital finance [7].

Source:

[1] Bitcoin at risk of a 51% attack from two miners (https://www.bitcoininsider.org/article/283548/bitcoin-risk-51-attack-two-miners)

[2] Bitcoin Mining Centralization Reaches Decade High as Two Pools Control 51% of Hashrate (https://blockonomi.com/bitcoin-mining-centralization-reaches-decade-high-as-two-pools-control-51-of-hashrate/)

[3] Wall Street Issues Serious $6.6 Trillion Crypto Warning as Price Crash Fears Hit Bitcoin, Ethereum and XRP (https://www.forbes.com/sites/digital-assets/2025/08/19/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)

[4] Strategic Bitcoin Reserves: U.S. Federal & State Initiatives (https://cash2bitcoin.com/blog/strategic-bitcoin-reserves-the-future-of-national-financial-strategy/)