In this episode we are joined by our very own crypto-analyst, Yassine Elmandjra, to talk about the idea that Bitcoin is becoming increasing centralized. This narrative has been growing over the last while with bigger entities supposedly controlling larger portions of the blockchain. Yassine shares his perspectives, ultimately showing that this argument has some serious flaws and that the blockchain has attributes that can prevent so-called “market control”. In our discussion, we cover the basics on the blockchain, mining, and the threat of a “51% attack” before going on to talk about pool centralization and its non-desirability. All of this is explained with the history of Bitcoin in mind. We are looking at the developments in blockchain technology from the last few years. For all this and much more, be sure to tune in!
Key Points From This Episode:
- Why does it matter if Bitcoin is becoming more centralized?
- Understanding mining and the basics of the blockchain.
- 51% attacks, Bitmain and mining equipment.
- Looking at the evolution of Bitcoin mining since 2009.
- Assessing the threat of mining pool centralization.
- Reasons why it is not really desirable or feasible to gain 51% of any mining pool.
- The changes in concentration in the Bitcoin blockchain.
- The improvement in mining pool concentration over the years.
- Lowering electricity costs through stranded energy assets.
“The claim that Bitcoin mining is centralized is largely overblown. Mining pool turnover is high and hashpower control continues to diffuse. Just in the last half of 2018, Bitmain’s mining pools lost 28% share.”—
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