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51% Attacks on the Bitcoin Network Are No Longer a Real Threat.

By ssaurel | In Bitcoin We Trust | 20 Feb 2024


Everyone's talking about the price of Bitcoin right now. I did so myself recently by giving you an update on the price of Bitcoin and what could await the price of Bitcoin in the days to come:


Bitcoin Price Is on the Verge of Breaking Its Bullish Channel at $52K. What’s Next?

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Demand for Bitcoin is reaching heights that the available supply cannot match.

Link: https://inbitcoinwetrust.substack.com/p/bitcoin-price-is-on-the-verge-of


Some people may even be arriving in the Bitcoin world right now without even suspecting that the Bitcoin price is the least interesting thing about Bitcoin. But it's worth talking about because it acts as a catalyst to attract more people to Bitcoin.

These people come to Bitcoin out of greed, but it's then up to those who have understood the why of Bitcoin to try to open their eyes to the why of Bitcoin.

Quite a program, you might say!

Sure, it's a tall order, but it's an absolute necessity if we're to save the Bitcoin revolution, which is slowly but surely being robbed by the giants of global finance:


Reminder: Bitcoin Was Invented to Replace the Current Flawed System, Not to Be Absorbed Into It.

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Stop getting excited about BlackRock and Fidelity accumulating more BTC every day, and be aware of what's coming.

Link: https://inbitcoinwetrust.substack.com/p/reminder-bitcoin-was-invented-to


While the giants of global finance are now promoting Bitcoin via commercial clips, bankers, regulators and even the majority of politicians remain firmly opposed to Bitcoin.

As Hillary Clinton has said in the past:

“Bitcoin has the potential of undermining the role of the dollar as a reserve currency.”

Therefore, everything must be done to prevent this from happening. Those not driven by greed might say that the gradual takeover of mountains of Bitcoin by financial giants such as BlackRock and Fidelity is aimed at gradually marginalizing the Bitcoin revolution.

Their aim? To reduce Bitcoin to the role of Gold 2.0 to limit its full potential!


Financial Giants in the World of Bitcoin: The Risk of Seeing Bitcoin Reduced to the Role of Gold 2.0?

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That would be a shame, because Bitcoin's potential for humanity is so much greater than that!

Link: https://inbitcoinwetrust.substack.com/p/financial-giants-in-the-world-of


Among the most frequently recurring attacks on Bitcoin, you have the classic “Bitcoin is a disaster for the environment”, or “Bitcoin is only used for illegal activities”.

An attack that comes up less frequently is linked to Bitcoin's potential vulnerability to an attack by taking control of 51% of the network's computing power. If this attack is used less frequently by Bitcoin detractors, it is above all because it requires a minimum understanding of how the Bitcoin system works.

This requires an effort that 95% of Bitcoin detractors have never made.

For those who want to be part of the 5% (at best) who understand why Bitcoin works, I invite you to read the article I wrote on potential attacks by taking control of 51% of the Bitcoin network's computing power:


What You Need To Know on Bitcoin 51% Attacks.

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Much has been said about this topic, but the economic interest in mounting such attacks is non-existent.

Link: https://inbitcoinwetrust.substack.com/p/what-you-need-to-know-on-bitcoin


The costs of such an attack on the Bitcoin network would be very high.

CoinMetrics has just put a more precise figure on the costs such an attack would represent. The conclusion of the CoinMetrics report is clear: a 51% attack on the Bitcoin network is economically unfeasible.

To reach this conclusion, CoinMetrics simulated several scenarios.

Among the various scenarios considered, there is one in which a malicious actor would take control of 51% of the ASICs currently connected to the Bitcoin network. In another scenario, the malicious actor chooses to build his machines.

The malicious actor would rely on S9s in reverse-engineering mode, which would represent a cost of almost $20B. The S21 would potentially cost 1/4 of this amount, but it is also the most advanced machine, making it more susceptible to supply chain problems.


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Taking into account all attack scenarios and including OpEx (electricity), it has never been more expensive to attack Bitcoin, from the “naive” scenario of $5 billion to $22 billion.


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Given the monumental cost that such an attack represents today, CoinMetrics looked at the scenario where the malicious actor would be a nation-state. A nation-state would choose to use all its resources to destroy the Bitcoin network.

This would also be economically stupid, as the network would survive in the end anyway, and the nation-state would have spent considerable resources for nothing.

The final hypothesis is that malicious actors would mobilize resources to monopolize the funds present on the Bitcoin network.

In the most optimistic scenario for attackers, they would manage to walk away with $1 billion... But they would have to spend $40 billion to carry out the attack, so they wouldn't be able to profit from it, far from it.

For malicious actors wishing to destroy the Bitcoin network via a 51% compute power takeover attack, it seems that the point of no return has long since been passed.

As the computing power of the Bitcoin network increases, it becomes impossible to carry out such an operation, as it would defy all economic logic and would amount to self-destruction for the malicious actor. This even includes nation-states, as CoinMetrics points out.

The risk for the Bitcoin network now lies elsewhere, as I've already told you, and more in the marginalization of the deeper meaning of the Bitcoin revolution by financial giants.

As always, I urge you to check everything out for yourself. From now on, you can download the CoinMetrics research report and read it for yourself:


Quantifying the Cost Attack Bitcoin


Please feel free to share your analysis in the comments.

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ssaurel
ssaurel Verified Member

Entrepreneur / Developer / Blogger / Author.


In Bitcoin We Trust
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