[ad_1]
A 51% attack should be lethal for any cryptocurrency that suffers. It eliminates a particularly vital aspect of any store of value, meaning that if you spend it, you should not have it yet.
The 51% attack takes away this quality by facilitating something called double-spending. If you control 51% of your computer power while maintaining a cryptocurrency, then you can spend your cryptocurrency, but update the distributed ledger to show it is still in your account.
This is a well-known vulnerability in the consent mechanism on the proof of work that underlies bitcoin and many other cryptocurrencies.
Generally, it was thought to be unachievable because the power of the computer involved in maintaining these networks is so vast. However, with the advent of server farms full of cryptocurrency miners dedicated to hiring and reducing the monetary reward for miners, such attacks are becoming possible.
Such an attack should completely destroy faith in any currency that suffers it and weaken trust in any currency by relying on the same security mechanism. Yet when the news broke off over the weekend, not much has happened to the classic ethereum price.
No one has stamped the door or downloaded their participations, even though someone has simply torn a page from their vaunted and presumed unchanging ledger.
Strangely though, the price fell 14% from $ 5.03 to $ 4.33 on Thursday. We do not think that users of cryptocurrency – a famous online group – were so slow in absorption. The move seems to be due to concerns that the cryptocurrency will be removed from the base of coins, an important exchange.
It affects Byte Me as saying that a fundamental security flaw seems to have a minor impact on the price of a cryptocurrency compared to a simple delisting. Remember, it will be listed in many other places. But the loss of ease of access and exposure that an important exchange of offers seems to be more lethal than a total loss of credibility.
The future of Bitcoin in Europe
It's a difficult time to be a bitcoin investor. The value of the currency has plunged from 80% from its peak of nearly $ 20,000 in December 2017 to around $ 3,670 today.
But cryptocurrency investors are not the only ones to beat. One of the largest cryptocurrency exchanges in the UK, Coinfloor last year had to abandon part of his staff with the fall in cryptocurrency volumes.
In an interview with Byte MeCoinfloor's CEO, Obi Nwosu, was optimistic about the prospects of his exchange, noting that his exchange, unlike several competitors, was "born in a bear market".
This week, Coinfloor, established in 2013, sold its term arm CoinfloorEX, maintaining a shareholding in newly created CoinFLEX. He will share the company's ownership with market makers, the software provider Trading Technologies and some major encryption investors.
Nwosu intends Coinfloor to focus on its main specialty: the cryptocurrency spot market in the UK and Europe. It is a strategy that has already served well the exchange, but has the recent bearish turn changed the game?
Byte Me not sure, but he asked Nwosu how he saw Bitcoin developing on the continent from here, and if he eventually replaced the legal tender currency.
"We have to get it as a valuable reserve of value and then in time that will stimulate people to make an effort to make it a good value transfer, that is, the use of money," he said, adding that for now the bitcoin it was seen primarily as an investment offer.
Byte Me remains skeptical of the bitcoin's ability to truly attract the masses in Europe and become an adequate currency.
There are still some great barriers. Bitcoin and cryptocurrencies have not yet found a way to replace central banks and the important function they meet. Being the currency established in a country is more than just a legal currency for transactions.
Monetary policy allows the control of the price of money, and therefore (hopefully) actions responsible for combating inflation and ensuring that the economy is moving forward. As long as the masses can not be convinced that this is not a necessity, and that bitcoins offer tangible benefits, they can not become a fully diffused currency.
Seizing financial independence, a battle cry in cryptographic circles, is easier to sell in countries with weak institutions and volatile currencies. But as Nwosu noted, bitcoin does not have to be the "best form of money … it just has to be acceptably good, because it has other properties that are better".
Presumably he referred to the decentralization and unchangeable nature of his ledger: admirable qualities that certainly add value. Innovations such as the development of the lighting network, which helps to speed up transactions, can certainly help guide adoption as well.
Byte Me agrees that for BitCon to be seriously used as a currency, it first needs to make its case as a store of value. But can it do so in a bear market, where it remains volatile but without an accompanying financial reward for investments?
Byte Me He has always argued that the most successful cryptographic assets in advanced economies should be those that take full advantage of generalized accounting technology and smart contracts to create a single service. Rare gems indeed.
This idea seems to take hold. The initial coin market raised only $ 20 million in December, as investors realize that assets sold do not have lasting value.
It is hoped that the cryptocurrant bear market will stimulate crypto-brain to produce and refine services based on DLT technology that tangibly solve real-world problems. Accompanied by adequate regulation, perhaps this could help the crypto-market to regain the imagination of budding investors.
Source link
