Kraken Intelligence’s forecast showed the costs that would be required for a 51 percent attack on the Bitcoin network. For potential attackers, these figures are more than sobering.
According to the company’s experts, an attempt to hack Bitcoin will end in financial ruin for the attacking organization. According to Coinmarketrate.com, platform that is protected by hundreds of miners and verified by thousands of node operators, the blockchain has been running continuously since launch. So far, there has been no Proof-of-Work blockchain hacking.
The Kraken report examines various consensus mechanisms. For the first time, the data clarifies what specific requirements are needed to carry out a 51 percent attack on Bitcoin.
Requirements for attacking Bitcoin
From the Kraken numbers, it becomes clear that anyone who wants to hack Bitcoin needs money. Only 216 million ASIC mining devices will cost almost nine billion US dollars. Electricity costs are also high and amount to almost $20 million per day.
The data relate to the ASIC Bitmain Antiminer S 19 model, and the cost of electricity in the calculation is 0.1177 US dollars per kilowatt-hour. This corresponds to the average electricity price for companies in the United States.
In comparison, hacking the Bitcoin fork — Bitcoin Cash (BCH), seems much easier. Bitcoin Gold (BTG), also a fork of the real BTC blockchain, has already witnessed two similar attacks. In 2018, a total of 388,000 coins disappeared after a 51 percent attack. Two years later, another attack occurred. However, only $72,000 was stolen.
Therefore, an attack on Bitcoin is unlikely. The cost-benefit effect will simply be too low. Miners together with node operators form a solid foundation. In the future, the industry surrounding Bitcoin and the recently increased interest from institutional structures can make an even greater contribution to ensuring the security of the network.
A nuance about which, for some reason, experts stubbornly remain silent
The largest mining companies and Bitcoin holders. After all, it was only recently that the world’s largest asset manager, BlackRock, launched a private bitcoin trust fund. Or MicroStrategy, which buys back another 301 Bitcoins.
After a two-month hiatus, former CEO Michael Saylor’s company, MicroStrategy, is once again buying $6 million worth of Bitcoin.
The company that has become a subject for semi-mythical rumors circulating around, in which Michael Saylor is already just a simple president, announced the purchase of Bitcoin in the amount of about $6 million. For the first time since June, and since the departure of Michael Saylor from the post of CEO in August, the company is buying a digital currency.
As follows from the SEC document, the company acquired about 301 Bitcoins in the period from August 2 to September 19, 2022. For each, MicroStrategy paid an average of $19,851 per BTC.
Thus, MicroStrategy’s Bitcoin balance has increased to about 130,000. It remains the largest company having digital currency investments.
Former CEO and current chairman of the supervisory board Michael Saylor confirmed the purchase on Twitter.
And, as usual, we are glad that the BTC is so popular. But why do we rejoice when the institutionals turn Bitcoin into an analogue of the fiat system.
And everyone forgets about the mysterious Satoshi Nakamoto when they talk about a 51% Attack. But in vain. With 1 million BTC, the entire sector can easily be brought to its knees.