Understanding Mining Pools
In Bitcoin's early days, anyone could mine with a laptop. Today, mining difficulty is so high that solo mining is practically impossible for individuals. Mining pools solve this by allowing thousands of miners to combine their hashrate and share rewards proportionally.
When a pool finds a block, the 3.125 BTC reward (post-April 2024 halving) plus transaction fees are distributed among all contributing miners based on the work they contributed. This provides more consistent income compared to the lottery-like odds of solo mining.
Why Pool Distribution Matters
Bitcoin's security relies on no single entity controlling more than 50% of hashrate. Currently, Foundry USA and AntPool together represent about 50% of global hashrate—a concentration that the community watches closely. A healthy, decentralised mining ecosystem benefits everyone.
Major Mining Pools (2025)
Foundry USA
🥇 #1 by Hashrate (~30%)
Foundry USA is North America's largest mining pool, operated by Digital Currency Group (DCG). It focuses on institutional-grade reliability and regulatory compliance, making it the pool of choice for many publicly traded mining companies.
~280 EH/s
Hashrate
FPPS
Payout Model
~30%
Network Share
Pros
- ✓ Highest hashrate pool
- ✓ US-based, compliance-focused
- ✓ FPPS provides consistent payouts
- ✓ Trusted by institutions
Cons
- ✗ Centralisation concerns
- ✗ May not serve all jurisdictions
- ✗ Higher barrier to entry
AntPool
🥈 #2 by Hashrate (~21%)
Operated by Bitmain—the world's largest ASIC manufacturer—AntPool is one of the oldest and most established mining pools. It offers flexibility with multiple payout models and supports various proof-of-work cryptocurrencies beyond Bitcoin.
~150 EH/s
Hashrate
Multiple
PPS+, FPPS, PPLNS
~21%
Network Share
Pros
- ✓ Long-established reputation
- ✓ Multiple payout options
- ✓ Multi-coin support
- ✓ Bitmain hardware integration
Cons
- ✗ China-based (regulatory uncertainty)
- ✗ Past controversy over tx manipulation
- ✗ Centralisation concerns
F2Pool
🥉 Established 2013
F2Pool (also known as Discus Fish) is one of the oldest mining pools still in operation. Founded in 2013, it has built a strong reputation for reliability and supports over 40 different cryptocurrencies.
~105 EH/s
Hashrate
2.5%
FPPS Fee
40+
Coins Supported
ViaBTC
Strong Asian Presence
ViaBTC has maintained consistent presence in the top pools since 2016. Known for excellent uptime and global server coverage, it's a popular choice for miners in Asia and increasingly worldwide.
Braiins Pool
⭐ The Original Pool (formerly Slush)
Braiins Pool (formerly Slush Pool) holds a special place in Bitcoin history—it was the world's first mining pool, founded in 2010. While smaller than the giants, it's highly respected for transparency, innovation (Stratum V2 protocol), and commitment to decentralisation.
Historical Significance
Slush Pool mined the very first pooled block on December 16, 2010. The innovation of pooled mining made Bitcoin accessible to small miners who couldn't compete solo.
Other Notable Pools
SpiderPool
Rising pool with growing hashrate share.
Payout Models Explained
Different pools use different reward distribution methods. Understanding these is crucial for choosing the right pool for your mining operation.
FPPS (Full Pay Per Share)
Most predictable earnings. You receive payment for every valid share submitted, including a share of transaction fees. The pool absorbs the variance risk.
Best for: Miners who prefer steady, predictable income.
PPS+ (Pay Per Share Plus)
Similar to PPS but with transaction fees distributed based on PPLNS. Offers a balance between predictability and potential upside from fees.
Best for: Miners wanting steady base income with fee bonus potential.
PPLNS (Pay Per Last N Shares)
Higher variance but potentially higher rewards during lucky streaks. Payment depends on the pool finding blocks. Lower fees than FPPS.
Best for: Long-term miners who can handle variance. Lower pool fees.
🇦🇺 Bitcoin Mining in Australia
Australian Mining Landscape
Australia has a small but growing Bitcoin mining presence. While the country doesn't compete with North American or Asian operations in scale, several factors make Australia interesting for mining:
- • Renewable energy potential: Australia's abundant solar and wind resources offer opportunities for sustainable mining operations.
- • Regulatory clarity: While not mining-specific, Australia has relatively clear cryptocurrency regulations compared to some jurisdictions.
- • Latency to Asia: Geographic proximity to Asian pools can mean lower latency for Australian miners connecting to pools like F2Pool or ViaBTC.
Notable Australian Mining Operations
While Australia doesn't have mega-scale mining like North America, several operations exist:
- • Iris Energy - ASX-listed, though primarily operates in North America
- • Mawson Infrastructure - Australian-listed but US-focused
- • Various small-scale home and commercial operations across the country
Tax Considerations for Australian Miners
Mining income is taxable in Australia. The ATO treats mined Bitcoin as trading stock or income depending on your circumstances. Keep detailed records of electricity costs, hardware depreciation, and mining rewards for tax purposes. See our Australian Tax Guide for more details.
Pool Comparison Table
| Pool | ~Hashrate | Payout Model | Fee | Min Payout |
|---|---|---|---|---|
| Foundry USA | 280 EH/s | FPPS | Variable | Varies |
| AntPool | 150 EH/s | FPPS/PPLNS | 0-2.5% | 0.001 BTC |
| F2Pool | 105 EH/s | FPPS | 2.5% | 0.001 BTC |
| ViaBTC | 90 EH/s | PPS+/PPLNS | 2-4% | 0.001 BTC |
| Braiins | ~15 EH/s | Score-based | 2% | 0.001 BTC |
*Hashrates are approximate and change constantly. Check live data sources for current figures.
Centralisation Concerns
With Foundry USA and AntPool controlling roughly 50% of global hashrate combined, the Bitcoin community watches mining centralisation closely. While pools don't directly control the miners who contribute hashrate, concentration raises important questions:
⚠️ Risks
- • 51% attack becomes theoretically easier
- • Pool operators could censor transactions
- • Regulatory pressure on large pools
- • Single points of failure
✅ Mitigating Factors
- • Miners can switch pools easily
- • Attacking Bitcoin would devalue miner holdings
- • Economic incentives align against attacks
- • New decentralised pool models emerging
Projects like OCEAN and Stratum V2 protocol (from Braiins) are working to give individual miners more control over block template selection, reducing the centralisation risk from pool operators.
