Cryptocurrencies
Bitcoin Miner Consolidation Increases Risk of More Crypto Mayhem
- Threat of hacks, fights over network control seen rising
- More than 100,000 mining operations likely ceased activity
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One of the consequences of the recent rout in Bitcoin is well underway. And it’s likely to have a profound effect on the leading cryptocurrency.
There is a consolidation going on among the so-called miners that perform the complex calculations to generate the digital currency after the plunge rendered many of them unprofitable. At least 100,000 individual miners have shut down, according to Autonomous Research LLP. Fundstrat Global Advisors LLC estimates that about 1.4 million servers have been unplugged since early September.