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Bitcoin 51% Attack Vector



Like most currencies, bitcoin has its own layers of protection. You know, like ATM’s defend money by spilling ink over them, governments keep a record of the fiat currency by their serial numbers and electronic money trails, bitcoin has its own ways to protect itself. But, can it though?

It is a decentralized platform, most people don’t even know what to call it. People do not know what to think of it, as a company but without a CEO and without a face? Perhaps, if it is a brand, who does its branding, what and how does its website work? There are a lot of questions in a noobs head, I know there are in mine. So, I asked myself, what is it that I would like to know before the rest, and I figured it should be the Bitcoin 51% attack. What is all the rave about.

So there is no single party who owns the currency, it is shared right.  It is decentralized and ruled by the agreement of its people, its members i.e its miners, it is ruled by the consensus.

This is important to ensure that the organism remains free of any outbreaks or greedy cults taking over. Any dominating group or party controlling the majority of the hash-power can double-spend, reverse or censor transactions, simply because they have the power to do so by the virtue of being a majority, making the decentralized currency lose its meaning and thus it will be performing the dreaded 51% attack. This attack means that 51% of the miners combined forces and stood against bitcoin itself forming a leadership that rejects and defaults the system.

This attack is made possible by the fact that nodes automatically follow the longest chain (i.e. that with the most accumulated proof-of-work). This could be understood as an attacker beginning to secretly build a new chain on top of a given block (without broadcasting it to the network), whilst the remainder of the miners continue to build on what is decidedly the main chain.

Given the masses of hash-power that the attacker has, they’re able to keep up with the rate of new blocks being appended to the main chain, selectively including (or, indeed, excluding) transactions. In order to make such an attack profitable, it’s probably at a point after they ‘forked’ that they’ll choose to begin making large purchases on the main chain, without including these transactions on their secret chain.

A merchant will generally wait for a certain amount of confirmations before accepting that the deposit is valid, which, for all intents and purposes, it will be. Worth noting is that exchanges tend to require a high number of confirmations on less secure chains (if the coins/tokens are buried, they’re less likely to be reversed or double-spent).

The attacker reveals it’s doing once bigger purchases show up, highlighting a fork, this means the main chain now shows that the one node they conquered was not enough thus, they are pulling in other nodes into their system trying to form a bigger organism. A notification is sent to all nodes about the disturbance and all nodes cast the valid-until-then chain to the side and the ledger is reorganized. On this new chain, the attacker is still in possession of all of the funds they had spent in the other state.



Bitcoin-Related Stocks Soar In Stock Market; Is Bitcoin Responsible?



The United States stock market on Monday saw a different dimension related to price movements of stocks. Analysis and price charts on the 24th June 2019 showed that virtual currencies Bitcoin-related stocks soared immeasurably higher than their fiat counterparts. This is coming after Bitcoin was seen to have temporarily broken the $12,500 resistance level and settled above it. This remarkable price surge seen in Bitcoin was the first recorded in about 15 months, and this made it a fast buying material.

Blockchain Relatives Stocks

Grayscale Bitcoin Investment (GBTC) is a virtual currency which is linked to the price of Bitcoin. The stock must have caught the bullish fever and followed every of Bitcoin’s upward waves. The stock was seen to rise temporarily by 13%. Grayscale Bitcoin Investment appeared to have few other supporters with similar blockchain relationships. Riot Blockchain, DPW Holdings, as well as Marathon Patent Group also made rapid uptrends as they all shined in bright green. All these stocks doubled their prices before the closing hour.

On the other hand, Peter Schiff an American stockbroker and financial commentator says

Both gold and Bitcoin prices have risen recently, causing many to erroneously conclude that the two are rising for the same reason. But stock and bond prices are also rising. Bitcoin and stocks are rising as speculative assets, while gold and bonds are rising as safe havens.

Bitcoin’s aggressive turnaround

Bitcoin has particularly moved up in a very aggressive bullish rally which saw it recording a new all-time high within the past 15 months. At the moment, no one can exactly predict Bitcoin’s next line of movement but many are very hopeful and the optimism is very much present. Bitcoin is expected to make more radical price surge, eventually surpassing its 2018 all-time high of $20,000.

Alts Waiting To Join The Rally

However, as bitcoin excelled in all ramifications, taking into consideration its market price and capitalization, this is not to be said of alt coins which seem to have been left behind in this series of radical movements. Popular alts like Litecoin is still trying to nurture the common touch.

At the time of writing this article, Bitcoin had doubled its price in about 5 weeks period and had also doubled its market cap in just a few days. This new development also steered arguments and criticism from Bitcoin’s antagonists who seem to be more interested in Gold.

Bitcoin Versus Gold

Gold, just like Bitcoin also rose up the charts and saw significant improvements. However, this was immeasurably smaller in capacity and totally incomparable to Bitcoin’s prowess over the past few weeks.

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Present-day Bitcoin market has matured, improved on the protocol side, claims Blockstack PBC CEO



The cryptocurrency industry today has everyone’s attention, with the present bull run pumping Bitcoin’s price and driving the market capitalization through the roof. A series of investors and analysts have predicted that the bullish momentum experienced by the market is currently more mature than the one in 2017. This was backed by a recent SFOX report as well.

In a recent segment on Bloomberg, Muneeb Ali, CEO and Founder of Blockstack PBC, highlighted that the crypto-market was basically very repetitive, as it basically does the same thing time and time again, but on a different scale.

He said,

“The market goes up to its all-time-high, crashes down, takes a longer time to bounce back and if you have been in crypto long enough, you are pretty much expecting it.”

Ali suggested that Bitcoin had made significant progress on the development and protocol side as presently, a lot of highly skilled developers and engineers are involved in the technological aspect. The remark can be backed by the fact that Bitcoin recently released its Erlay protocol which was supposed to reduce bandwidth usage in the network and improve system efficiency.

The involvement of institutional investors has made Ali skeptical about the market since the technology is fairly new and “no one really knows” what is going on or where it is going in the future. He believes that the present bull run has less to do with institutional investors and more with the fact that the overall market was maturing.

Further, it was recently suggested that Bitcoin played a role in driving up the prices of Asian crypto-related stocks in Tokyo and Seoul, with certain companies witnessing hikes of more than 10 percent over the past week. The surging Bitcoin price and its corresponding market cap affords a lot of opportunity for these stocks to rise even higher.

Source :ambcrypto

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Bitcoin [BTC] Forges Another Assault On $15,000 Reviving Investor Interest



  • Double-digit gains on Wednesday revive investor interest in Bitcoin and other cryptocurrencies.
  • Bitcoin surge is supported by key technical indicators including the RSI and the MACD.

It is evident that Bitcoin is not going to rest until it achieves the milestone by breaking above $15,000 in the coming few weeks. Following the break above $12,000, BTC/USD pushed for further correction higher inching closer to $13,000. A new 2019 high was from at $12,946, however, this will not hold as the high for long owing to the increasing bullish pressure at press time.

BTC/USD 4-h chart

Bitcoin price chart
Chart source: Tradingview 

BTC/USD trading pair is correction higher 10% on Wednesday with a relative change of +1115. In fact, a break above $12,900 is the kick that Bitcoin is waiting for the much-anticipated movement above $13,000.

As discussed by Coingape earlier today, the technical levels remain positively intact. The Relative Strength Index (RSI) continues to form a higher low pattern. The up trending indicator signal points towards a stronger bullish momentum. At 88.22, the RSI is back to the levels seen on May 12 following the break past $7,000 and later $8,000.

As long as the RSI stays in the overbought and respects the trendline observed on the chart, correct past $13,000 will be a walk in the park. The strong bullish momentum is also supported by the trends seen with the Moving Average Convergence Divergence (MACD). The indicators divergence increase is an indication of building bullish momentum and the tight grip from the buyers.

Bitcoin Key Technical Indicators

Key Resistance: $13,500

Key Support: $11,000 – $10,500

MACD 4-h: Increasing divergence suggest stronger bull grip.

RSI 4-h: The upward trend continues to cement the bull’s presence on the market.

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