Kadan Stadelmann: “Bitcoin is becoming more and more centralized”

Kadan Stadelmann, the technical director of the Komodo crypto wallet, is concerned about the increasing centralization of the Bitcoin network and its implications for the decentralized nature of BTC. Stadelmann highlighted the concentration of hashrate in certain mining pools, with Foundry USA and Antpool controlling about 50% of Bitcoin’s hash rate. This concentration of power among a few pools raises concerns over their ability to influence decision-making and potentially censor transactions.

Stadelmann emphasized that Bitcoin’s hashrate is predominantly controlled by just five pools, which collectively control 80% of the network. This shift towards centralization contradicts the notion of equality and decentralization that Bitcoin is built upon, according to Komodo’s CTO.

“A minority of miners control significant resources, undermining the decentralized nature of Bitcoin. This scenario calls into question the equality that Bitcoin is supposed to provide,” said the CTO.

Moreover, Stadelmann expressed worries about the growing involvement of leading financial institutions in Bitcoin mining. Companies like BlackRock, Morgan Stanley, Goldman Sachs, and Vanguard have significant stakes in Riot Blockchain and Marathon Digital Holding, the two largest mining companies. With control concentrated in the hands of a select few, the risk of centralization further intensifies, as per Stadelmann’s concerns.

On the other hand, billionaire Bill Miller expressed a contrasting viewpoint last year, stating that Bitcoin stands apart from centralized cryptocurrency projects.