Bitcoin’s Vulnerability to 51% Attack: A New concern
Bitcoin, often hailed as “digital gold,” faces a new threat. Duke University Professor Campbell Harvey warns about the potential for a 51% attack on the Bitcoin network.This attack involves controlling over 50% of the network’s mining power, allowing attackers to manipulate transactions.
While Bitcoin has remained secure for years, Harvey calculates that dominating the network for a week would cost around $6 billion. This is less than 0.5% of Bitcoin’s market cap.He suggests attackers could profit by shorting bitcoin before the attack.
However, critics argue that setting up such an operation would be tough and noticeable. Matt Prusak, president of American Bitcoin Corp., believes economic feasibility makes the 51% attack unlikely.
What is a 51% attack? in a proof-of-work blockchain like Bitcoin, miners validate transactions. If one entity controls more than half of the mining power, they can alter the blockchain. This could lead to double-spending and theft.
Bitcoin’s mining difficulty has increased over time, making attacks harder. But Harvey’s research highlights the need for continued vigilance in protecting the network.
