Bitcoin Cash is on the verge of being compromised and might just find itself at the helm of every cryptocurrency’s most dreaded nightmare—the 51 per cent attack.
Promising Year? Check Again
Roger Ver recently claimed that Bitcoin Cash is superior to Bitcoin (BTC) in scalability and transactions, and probably overall, it is possible he just might have spoken too soon.
There are many strong factors as to why analysts are choosing Bitcoin as the most probable for the mainstream in the long term, and its vastly superior hash rate is one of those factors. Bitcoin Cash, not so much.
The popular digital currency, which is currently the fourth biggest cryptocurrency by market capitalization according to CoinMarketcap, is on the verge of capitulating into every digital currency’s utmost catastrophe, and the warning signs should not be ignored for too long.
Although given the size of Bitcoin Cash, it might not have such great damning consequences as compared to Feathercoin (FTC) which was forked from Litecoin (LTC) in 2013 and was rendered absolutely useless by a successful 51 per cent attack on its blockchain. FTC currently trades barely above two cents, after launching at 2400 per cent of that.
Despite a promising a year that has seen it perform arguably better than Bitcoin, BCH faced its first challenge a week ago when its scheduled update did not go as planned following an attack on the network upgrade. BCH enthusiasts might be pleased with the increased privacy of Schnorr signatures at the moment, but they should also be worried about the network’s low hashrate.
Have we ignored the Signs?
BTC top, a single mining pool in China achieved the dreaded impossibility by gaining more than 50 per cent of Bitcoin Cash’s hashrate just within the past twelve hours.
According to the chart above, BTC top gained control of more than 53 per cent of Bitcoin Cash hashrate, a very sufficient number to launch an attack capable of double spending hundreds of millions of coins.
A single successful attack could render an exchange insolvent—and it is no exaggeration. Warren Togami, Blockstream VP solutions warned about the possibility about ten months ago, but not many paid attention.
“BCH meanwhile has 12% hash-rate of BTC,” he said, “while some exchanges credit BCH deposits after one confirmation. This is dangerous as there exist INDIVIDUALS with enough hash power to attack the BCH network. A hacked individual or pool could render an exchange insolvent”.
As of press time however, BTC top’s control have retracted to about 43 per cent, a scaring number all the same, especially compared to the very diverse distributions of Bitcoin.
The social media is gradually taking notice now, and some are subtly pointing fingers at Craig Wright and Calvin Ayre (loyalists of BCH SV). The scare is still on, and it doesn’t who or what is behind it, it has to be addressed sooner or later.
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