Bitmain Crisis: Hashpower Share Operated By Bitmain (BTC.com and Antpool) Sees 16-Month Low
Bitmain Crisis: Hashpower Share Operated By Bitmain Reaches 16-Month Low
Do you still remember the time when people were afraid that Bitmain could stage a 51% attack on Bitcoin because its hashpower share was so big? That seems like an eternity ago, especially when you consider that Bitmain is definitely not living good days right now. Bitmain has reached its lowest point in 16 months.
The Rise And Fall Of Bitmain
If you followed cryptos in 2018, you surely have read or heard the name Bitmain. The Chinese unicorn was the largest crypto mining rigs manufacturer back then and was the star of the market. The peak of the company happened during the first half of 2018 when the two mining pools of the company, BTC.com and Antpool, had an incredible share of 42% of the market.
Those were the days for Bitmain and, despite the company claiming that it was safe, a lot of people were concerned that a 51% attack could happen. It was a natural fear, of course, since the company had such a larger share of the most important crypto market.
Bitmain and the crypto market have gone through a lot since then. The bear market showed its claws and business started to get difficult at the same time that miners stopped to buy new rigs, which affected Bitmain.
The company has faced a challenge while trying to be approved by the Hong Kong Stock Exchange in order to make its own Initial Public Offering (IPO) and it has seen its profit go down as mining is becoming less and less profitable for most users, a side effect caused by the fall in prices.
The Hashpower Share Is Down To 26%
Now, as reported by The Block Crypto, Bitmain seems to be facing its hardest challenge: to survive in the winter of the direst bear market. BTC.com and Antpool, the two largest mining pools owned by Bitmain, are down to now only 26% of the hashpower share of Bitcoin.
Sure, the numbers are still impressive, as the company still owns a quarter of the BTC mining market, but the company is certainly struggling and losing its place. Possible layoffs could make things even worse, according to the crypto media outlet.
Bitmain has also decided to shut down two offices so far, one in Amsterdam and another in Tel-Aviv, Israel.
At least one could argue that the crypto market will be more decentralized with behemoths like Bitmain losing their power and decentralization is always a good thing.