17 days until Bitcoin halving , everyone in crypto are excited , COVID-19 pandemic, rise the markets unpredictability further.
Behind this mainstream media stories something weird is happening on SHA-256 rental market that give us idea to discover the real possibility for 51% Attack on BitcoinCashABC(BCH) & BitcoinSV(BSV) at the same time, possibility that maybe under way right now.
Total computational power of decentralized proof-of-work system is a sum of computational power of the nodes, which can differ significantly due to hardware used. Larger computational power increases chances to win mining reward for each new block mined, which creates incentive to create clusters of mining nodes, or mining pools.
Any pool or entity that achieves 51% hashing power can effectively overturn network transactions, resulting in double spending.
Susceptibility to the attack of given cryptocurrency depends on the existing hashing power of the network since the attacker would need to overweight it. For the attack to be economically viable, the market cap of the currency must be sufficiently large to justify the cost of renting hashing power
So let see existing hashing power of the BTC, BCH and BSV networks, which all use same Asic SHA-256 Miners :
- BTC = 115.000 PH
- BCH = 2.000 PH
- BSV = 1.600 PH
So basically if you control only for few moments 2% of Bitcoin miners you can make 51% Attack on both Networks at the same time.
In order to make this happens you will have basically 3 options
1.You need to own around 200.000 S9 Asic miners or equal, and power plant to make electricity for them 250.000 Kw per hour
2.You must own massive Bitcoin mining pool or pools and “secretly” and “illegal” to use hashrate of your customers to attack the other networks
3. Is to rent over 2.000 Ph from Nicehash and similar platforms and to make this happen anonymous ( or combination of options 1+2+3 )
- Problem with this idea is the fact that Nicehash ( Largest renting platform ) have only around 300 Ph available hashrate to rent
So any suggestions ?
4. To lure individual Asic miners owners to put their equipment on Nicehash and then when enough hashrate is available to execute the attack
How to do this ?
Is this really possible ?
Yes it’s possible and is maybe happening at this moment so this is my story :
During this weekend someone have rent all available SHA-256 miners from Nicehash paying 5-12 time more than normal price . Not 5% but 500-1200% more.
So for anyone that have put their miners to Nicehash during this weekend profit was 400-500% more than on any pool or any rental platform.
Yes this is insane , but is not over and is happening right now ( now gain is over 350% ) but hashrate available is around 900 Ph ( 3 times higher than few days ago ) and as many more ASIC miners owners find out about this extra profit opportunity hashrate will increase rapidly.
So now possibility this to happen is not the question but when will happen and who will have the profit from such an attack ?
Who can make profit from such attack ?
- Competition – One network to hit other like in the latest war that we have witness between this 2 networks
- Hackers that can use 51% Attack to make millions from double spending.
- Bitcoin entities No.1 ( Whales , Banks , Satoshi Nakamoto … ) that have interest to show to the world that only Bitcoin is the real ruler of Crypto, and activating panic sale on BCH & BSV that with good coordination will push BTC price up
- Bitcoin entities No.2 that will use this 51% attack to execute massive crash on the prices on crypto markets , based on fear and fake news
So what do you think is this science or science fiction ?
Is there way to prevent this to happen ?
Update: I forgot to mention the SHA-256 ASIC Boost Market that is curently around 1000 Ph