Large Miners' Dominance Expands Amid Declining BTC Hash Rates
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According to CryptoQuant, Bitcoin's average hash rate, or the number of hashes per second, has dropped from 1 trillion hashes per second on the 4th of last month to 967 billion hashes per second. Even with the lower hash rate, mining difficulty has increased, further deteriorating profitability. This has contributed to the dominance of large mining companies and mining pools in the market.
As mining costs rise, concerns about the centralization of the Bitcoin mining industry grow. Operating on narrow profit margins, large miners leverage economies of scale to expand their market share. However, some smaller miners still manage to mine blocks on their own.
During July and August, three solo miners added blocks through Solo CK Pool, each earning between $340,000 and $373,000 (KRW 517.87 million) in rewards. The first miner mined block 903883 on July 3rd, earning approximately $350,000 (KRW 50,000). The second miner earned approximately $373,000 on block 907283 on July 26th. Finally, a small miner who mined block 910440 solo on the 17th of last month earned approximately $373,000.
The continued rise in Bitcoin mining difficulty has restructured the industry around large corporations, contrasting with the dramatic performance of smaller miners.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
