Unknown Bitcoin Cash Miners Control Almost 97% of the Network’s Hashpower

There are many peculiarities about the Bitcoin Cash network. Perhaps the biggest concern of all is an unknown entity that continues to mine the vast majority of network blocks. No one has any idea who is behind this mining effort or how many people may be involved. So far, it seems the majority of mining rewards from those blocks have been sent to two different addresses. 

Who is Mining These Bitcoin Cash Blocks?

Ever since the Bitcoin Cash network was launched, someone has been doing a lot of mining without using one of the pools supporting this chain. Instead, it appears that he, she, or they are more than happy to keep mining as an unknown entity and never reveal their identity. It is not uncommon for miners to remain anonymous, yet it is of grave concern for Bitcoin Cash. The unknown entity has been mining close to 95% of all network blocks for quite some time now.

Without knowing who is responsible for this mining activity, there is plenty of reason for concern. Whoever is mining these blocks on their own could easily perform a 51% attack against the Bitcoin Cash network at any given time. Although that has not yet happened, it is certainly something to keep in mind. Considering that ViaBTC, BitClub, and a few other pools support mining BCH, there is no reason for this unknown entity not to have joined a pool already.

With the vast majority of block rewards going to two addresses, things only get more confusing. Perhaps the most peculiar aspect to all this is how neither of those addresses shows an interest in selling coins for the time being, but merely collects BCH coins as often as possible. These two addresses combined have a total balance of over 10,000 BCH right now, which is worth around 720 BTC at current market prices.  This is a bit comforting, although it still means 10,000 coins can be dumped across exchanges at any given moment.

The Bitcoin Cash mining difficulty is scheduled to adjust in a few days from now. At that point, the new difficulty will be almost three times higher than it is now. That should hopefully result in better mining profitability of BCH, which is still 43% less profitable than Bitcoin itself. Enticing miners to switch to Bitcoin Cash pools will not be easy. Even with a higher profitability, a lot of miners will still sell off their coins as quickly as possible.

So far, it does not appear as if the Bitcoin Cash community is overly concerned about an unknown entity successfully controlling the vast majority of BCH mining power. Whoever is behind this initiative clearly has big hopes for a future BCH price increase, which has been awaited for nearly a full week now. For some reason, market makers are more than content to keep the BCH price around US$300. That is a solid value for someone who controls over 10,000 coins, but it is possible the mystery miner or miners are waiting for a much higher price.

Even though most people are not overly concerned, it is not a healthy situation by any means. Having a mining pool control 51% or more of the network hashrate is troublesome. An unknown entity mining nearly 9.7 out of every 10 network blocks represents a whole new level of uncertainty. So far, no major damage has been done. However, it would be interesting to see the miners in question expose their identity and explain their objective. Until then, all we can do is speculate about this mystery.

  • Spencer Rhodes

    You are a fool if this fact does not concern you.

  • yo yasse

    Toxic, toxic, toxic trash.

    Highly monopolized digital currencies are always very prone to any kind of nasty manipulation (pump and dump, 51% attacks…) …and not knowing who is behind all that makes it even 100 times worse…

  • smd

    All of this is correct but wouldn’t you like to have a whole functioning bitcoin copy just for _yourself_? And then make it viable by (block)chaining few Core devs?

  • Michaela von Alençon

    how can you sleep at night…

  • don77701

    97%. If they wanted to destroy the coin, they would already have. I think there plan is to split the Bitcoin market. If they can hold steady at 2k while Bitcoin stays around 4-4.5k, you will have a race n the game will be on. Consider Bitcoin Cash jumped after Bitcoin jumped to 4k. Is there a correlation? Has this secret entity find a way to piggy back ride on Bitcoin? If it jumps whenever Bitcoin jumps or visa versa there maybe something up. Technically maybe possible to program into it to do it, if you own 97%. You can bridge between the two blockchain and ghost the price possibly??? Is that what is going on. To not make too suspicious, you only add ghost funds to certain ratio to the actually funds added with the ratio to Bitcoin Chain. If this even so, how would you find out. If you did, should it be known since it may compromise the whole market. Remember with 97% hash power, you can just write codes to add funds into the blockchain. Since you have that power, you don’t want to make too it suspicious so you do it to a certain ratio. If anyone says anything you deny, deny and deny. Isn’t how they do it????. Plus if your a miner, you put in to activate the price jump, when you have mined many already, then you sell some of it. Eventually the hash rate will be split up so you own 97% anymore, but you already have the money.

  • Wei Feng

    Now they have made a move…….

  • Flaim

    Well we all know it was Roger Ver now and he pumped and dumped these coins on his loyal followers on the 12th of November