nazmulhasanshipon said:
I don't know what balances this force. My brain tells me centrifugal force balances it.
You need to pick a reference frame and stick to it. You are confusing yourself by switching between two.
In the ground frame, being an inertial frame, there is no centrifugal force. The tension exerts a force which is not balanced, so it produces the net force and this results in an acceleration. We can choose to resolve the acceleration of a moving object into a component parallel to its velocity and a component normal to its velocity. The component normal to the velocity is known as the centripetal acceleration, and the component of the net force normal to the velocity is known as the centripetal force. If the mass is moving at constant speed then there is no component parallel to the velocity.
In you choose a reference frame rotating about the hole at the same rate as the mass then in this frame there is no acceleration. In order to explain that we need to balance the tension. We do this by inventing a centrifugal force that results from our choice of frame. So, yes, in this choice of frame the centrifugal force balances the tension.
Note that we can have both centripetal and centrifugal forces! This happens if we choose a rotating frame which does not get rid of the component of acceleration normal to the velocity. E.g. we could choose a frame rotating about the hole but at a different rate from the mass.
If the mass is rotating at angular rate ##\omega## in the ground frame and the rotating frame rotates at rate ##\omega'## then the apparent rotation rate of the mass in the rotating frame is ##\omega-\omega'##. The centrifugal acceleration for the rotating frame is ##r^2\omega'## and the observed acceleration of the mass in that reference frame is ##r^2(\omega-\omega')##.
Taking towards the hole as the positive direction, the F=ma equation in the rotating frame becomes
Net force = real applied force + centrifugal force ##= T-mr^2\omega'##
= mass * apparent acceleration ##= mr^2(\omega-\omega')##.
Simplifying, ##T=mr^2\omega##.