🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

51% Attack on Bitcoin Gold Shows Risk is Real

Published 06/04/2018, 11:15 AM
BTC/USD
-
BTG/USD
-

Investing.com - A hacking attack on Bitcoin Gold reported last month shows that a so-called 51% attack, a menacing scenario for any cryptocurrency, is no longer just a theoretical risk.
A 51% attack happens when hackers gain control of more than half of the mining power on a cryptocurrency network, allowing them to tamper with the blockchain ledger where transactions are recorded.
A single digital coin can even be spent more than once, in what’s called a double spend.
It is estimated that around $18 million worth of Bitcoin Gold was stolen in the attack, which targeted multiple exchanges.
At least three other virtual currencies have suffered 51% attacks in the last two months, including Verge and Monacoin.
While the possibility of a 51% attack is nothing new, the chance of attacks occurring had been considered highly unlikely as more and more people joined cryptocurrency networks, making it harder to get control of over half a network.
A 51% attack is unlikely to ever hit bitcoin because of the large size of its blockchain, but cryptocurrencies with small networks are vulnerable.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.