A reader asked me over email recently:
Have you posted anything or had any thoughts on Ghash.IO situation?
Nothing on this. I think it's just early volatility in bitcoin space. Some company (CEX) got serious about making a private mining farm and made a whopping share. Others will follow soon.
The dirty little secret of the blockchain is that it's not secure until increasing the hashrate by even 1% is an enormous economic feat. Currently it's not impossibly expensive to build your own farm with significant share - therefore the network is not very theoretically secure. Even if every existing pool had no more than 10%, you can't be sure that some guy does not unleash enormous hashing power at once and reverts some transactions.
When more companies start building private farms (and they will, it's the only cost-efficient way to mine; individual miners will soon disappear), you'll see more even distribution of the hashrate, but most importantly, the growth of hashrate will get slower. Because the slo