Why You Need To Be Hyper Aware Of What Crypto You Invest In Next
Doge coin is going nuts up to $0.62 as of writing this. I have a feeling we are about to see a mass flow of money out of doge into other projects. In fact I sold some myself and invested in Hive and some Hive tribes with my meme money!
I wanted to take a moment and talk about why you need to by hyper aware of how blockchains work and the very real risks of some of them.
As many investors are looking for the next 300%+ gain crypto again some have turned to what looks like Ethereum classic and Bitcoin Cash.
ETC is up 223% in the last 7 days and
Bitcoin cash up 38% in the last 7 days
Both seem to be into a sell off however as some funds move around.
What you need to be very aware of is that these are POW Proof Of Work blockchains. Much of which have LOW and I'm talking very low amounts of miners and hashing power.
This puts many of these at high risk of 51% attacks.
In fact Ethereum classic suffered three of these attacks last year and at a current mining hash rate of just 27.55TH/s Ethereum is at 626.21 TH/s show's how clearly easy it is for this network to hit a major attack again.
Take bitcoin for example. Bitcoin cash hash rate is 2.96 EH/s by the way you can look up these hash rates at any time here
While bitcoin is a massive 159.75 Eh/s you can clearly see how very real many of these smaller cryptos which people are pumping are at serious risk.
This only applies to POW Proof Of Work cryptocurrencies.
What is a 51% attack?
A 51% attack means that person or persons now controls the entire block chain. Meaning they become the validator of all transactions that take place on the blockchain.
If this happens they could credit their own accounts with free crypto such as diverting all transactions to their wallet. In fact this happened to Ethereum classic at least 3 times last year in which in one case over 2 days worth of blocks were able to be changed creating a 9 million dollar double spend on the blockchain.
A 51% hack happens and it happens more often than you might think on these lower end block chains so please be very aware of this when investing and moving your crypto around on POW blockchains.
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I think currently people are currently after the money and not the chain or any sort of hack, greed is rampant and people do not want to build but have the quick buck. I'm just taking my time. Of course the plan will always be to take out of a coin like doge and put it on hive
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Money makes the world go round. No matter how much someone might not like it it's just a fact that when price increases on a platform it's going to get a lot more attention in terms of developers, news etc.
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Yeah it's inevitable, as money keeps people inside of the equation
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It's an interesting topic because there were articles about China being able to control most of the hash rate and attacking the network. I personally don't think it will work because people would just start up their own networks to offset the hashing rate.
Thanks for the link as well. I may take a look at it from time to time.
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Chia is a funny one it's a new way of mining. Taking a massive harddrive and creating farms on it. If you had enough hard drive space then sure you could attack their network as well as it is still a POW model.
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51% attack is what happened with STEEM right? After collusion happened with the exchanges and many of the Steem witnesses joined hands with Justin Sun?
But I get it that these POW blockchains you mentioned above are more prone to this.
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I'll be honest with you I still don't know what happened with all of that. All I knew is I was pissed at the time and figured a big investment of mine went belly up because of a few ass hats lol.
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LMAO. No problem @bitcoinflood.
I am sorry that you lost money because of that bullshit. I wish Hive will make you a whole lot more.
I know for a fact that such a thing won't happen here. We will not let one person own the whole network. And as we move on, we will definitely observe more decentralization of power among the community members.
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Your post was promoted by @jfang003
Thanks for sharing some of your tips and insights, @bitcoinflood.