For those who missed the clarification, here is the thread by Charlie Lee on Merged mining and 51% Attack in Charlie Lee’s Own Words:
Since, so many people have asked me if this is an issue, I figure I should respond to this and clear up any misunderstanding of how merged mining works and how it affects 51% attack. Let me start off by saying that this network security concern is totally unfounded.
First, let me explain how security works in a POW cryptocurrency. Miners have an upfront cost (cost of hardware like ASICs/GPUs) and an incremental cost (cost of electricity) when mining a coin. To make money, miners have to mine enough coins to cover both costs over time.
On the flip side, we have attackers. In order to 51% attack a coin, they need to have 51% or close to 51% of the network hashrate and they need to mine the coin for some time to build up a 51% attack chain to override the honest chain and reverse some transactions.
How much time the attacker needs to mine depends on how long it takes for their victim to trust a transaction to be confirmed. So if the attacker is going to reverse some transactions to Coinbase for example, they would need to wait for 12 confirmations, which is 30 minutes.
This incremental costs can be calculated by calculating the electricity costs to run 51% of the mining hashrate for 30 minutes. Charlie Lee has also made a reference to an app called “crypto51.app” as a useful site to check that cost. We see that right now, it costs about $15,000 to attack Litecoin for 30 minutes.
But it’s not actually this cheap to attack Litecoin. There’s also the upfront cost that I first mentioned. This upfront cost can be calculated by figuring out how much money it costs to buy all the ASICs/GPUs needed to match the hashrate that is currently on Litecoin network.
Depending on which miner (A6+ or L3++) you can find, total costs is between $133M to $151M. This is of course assuming you are even able to find and buy that many ASIC miners. I’m talking 149,573 A6+ or 515,201 L3++! And you have to set up a mining farm with cheap electricity.
For this attack to be profitable, the attacker will have to make enough money to cover the costs of the attack: $150M upfront + $15k incremental. This is because if he successfully pulls it off, he will destroy the value of his Scrypt miners and won’t be able to recoup costs.
He will also need tens or hundreds of millions of dollars worth of LTC to perform this attack because he has to deposit these LTC to exchanges and double spend them. After a successful attack, LTC price might crash, which makes the attack even less worthwhile.
This attack is theoretically possible but not practically possible. Satoshi designed this system such it makes more sense for miners to be honest and mine the coin normally, rather than attack the coin and hurt their investment and mining income.
There’s also another way to get the hashrate needed to attack. That is to rent the hashrate. This is what the NiceHash-able percent refers to. Litecoin is 6% NiceHash-able. This means you can rent a total of 6% of the Scrypt hashrate. That’s nowhere enough to do a 51% attack.
Whereas, Bitcoin Cash (33% NH-able) and BitcoinSV (40% NH-able) are much easier to 51% attack. If you can rent the hashrate, then there’s no upfront costs and only the incremental costs are needed. That’s why it’s important for a POW coin to be mining algorithm dominant.
Litecoin is Scrypt-dominant and that is one of the reasons why Dogecoin switched to merged mining (AuxPoW) with Litecoin in 2014. Litecoin and Dogecoin miners are combining forces to mine both coins at the same time. So it would cost almost just as much to attack Dogecoin.
So how does the recent increase in Dogecoin marketcap and liquidity affect this 51% attack scenario? The simple answer is that it doesn’t at all. It still costs $100M+ to acquire the hashrate needed to do the 51% attack. That’s still prohibitively expensive.
Merged mining doesn’t make it “easier (and considerably cheaper)” to attack both network at the same time. The upfront costs and incremental costs is not any less.
The incremental costs are actually more! Pools like LitecoinPool are paying out PPS 155%. This means miners are getting 55% more in mining rewards than before because of the extra DOGE they get with merged mining. So incremental costs are $23,250 instead of $15,000.
The only difference with merged mining is that if you have the resources to 51% attack Litecoin, you can also 51% attack Dogecoin at the same time. But what good does that do? It’s not more attractive to attack Litecoin. There’s no higher ROI to attack Litecoin and Dogecoin.
If you can pull off this attack, you can make money by depositing LTC to an exchange and double spending it. Adding the ability to also double spend DOGE at the same time adds nothing. Re-read the original hypothetical attack and remove the DOGE from it. It’s the same attack.
Litecoin price analysis: Bulls continue to lead as LTC finds recovery at $186
- The price has resettled at $186.26.
- Litecoin price analysis shows bullish trend.
- Support is evidently strong at $147.02.
The bulls have been ruling the price charts for the past few weeks and even today a rise in price has been reported. The price is again at the $186.26 level, as the bulls were able to make a successful comeback in the last 24-hours. Although a noticeable drop in price occurred earlier, the bulls have been able to recover and have managed to take the price above $186 yet again. The price may increase further in the upcoming hours as well, which is highly motivating for buyers.
LTC/USD 1-day price chart: Bulls battle bearish momentum to retain control
The one-day Litecoin price analysis is dictating an increase in price as the bullish momentum has been revived. Although the price underwent a decline recently, today’s trend has again been supportive towards the bulls. Overall, an upswing has been observed over the past few weeks and today the price moved up to $186.3 level. The price is still standing above the moving average indicator’s (MA) value i.e. $180.9.
A crossover between SMA 20 and SMA 50 had been recorded in the prior weeks as well which further confirms the bullish lead. The Bollinger bands Indicator is indicating the following values; the upper value is $197.65 whereas the lower value is $147.02. The RSI score is balancing itself at 58.92 for the day.
Litecoin price analysis: Price bounces back to $186.3 after overcoming loss
The four hours Litecoin price analysis is showing signs of bullish activity as an increase in price has been detected. The price levels are now touching $186.3 after the bullish momentum was recovered. A downward trend had been following for the past few hours, but the bulls have been able to return back. The price is still standing below the moving average level i.e. $187.61 because of the previous drop.
The Bollinger bands average is currently found at the $185.31 level. Whereas the upper Bollinger band is standing at $192.5 level and the lower Bollinger band is standing at $178.13 level. The RSI score is 54.77 which is considered a quite neutral position. Nonetheless, the bulls have been able to stabilize price at $186 for now.
From a general overview, the coin value has undergone major improvement during the period of the last two weeks. This is why the technical indicators chart for LTC/USD is going bullish with 14 indicators on the buying side, eight indicators on the neutral side, and only four indicators on the selling side.
The moving averages indicator is providing support for the buyers as well with a strong bullish signal. There are 12 indicators currently maintaining the buying position, while two indicators are on selling position and one is on neutral position. The Oscillators are showing neutrality with seven oscillators on the neutral level, and two indicators each on selling and buying levels.
Litecoin price analysis conclusion
The one-day and four hours Litecoin price analysis is confirming an increase in the price as the bullish momentum has been revitalized. The price is now balanced at $186.3 after undergoing a significant decline earlier. Chances of improvement are increasing for the buyers as the hourly prediction is giving an upper hand to the bulls as well.
Litecoin Forecast and Analysis October 18 — 22, 2021
Litecoin LTC/USD ends the trading week at 190.30 and continues to move within the growth and bullish channel. Moving averages indicate a bullish trend. Prices broke through the area between the signal lines upwards. This indicates pressure from buyers of the digital asset and a potential continuation of the decline in the Litecoin rate in the current trading week. At the moment, we should expect an attempt to develop a price decline and a test of the support area near the level of 135.55. Where can we expect a rebound again and an attempt to raise the value of Litecoin with a potential target above the level of 315.05.
Litecoin Forecast and Analysis October 18 — 22, 2021
An additional signal in favor of raising the LTC/USD quotes in the current trading week October 18 — 22, 2021 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the growth option for the Litecoin digital asset will be a fall in price and a breakdown of the 95.05 area. This will indicate a breakdown of support and a continued fall in the LTC/USD rate below 35.05. Confirmation of the rise in the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the level of 265.05.
Litecoin Forecast and Analysis October 18 — 22, 2021 implies an attempt to test the support area near the 135.55 level. Then, continued growth to the area above the level of 315.05. An additional signal in favor of Litecoin’s rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the 95.05 area. This will indicate a continued decline in cryptocurrency with a target below 35.05.
LTC Price Analysis: LTCUSDT Shows Bullish Recovery As it Marks its Tenth-Year Milestone
Litecoin is currently ranked the fifteenth cryptocurrency by market cap as it marks its tenth-year milestone in the crypto space. LTC holders generally do not see the tenth anniversary to be worth celebrating as their beloved crypto-asset gets dominated by Bitcoin BTC and underperform compared to other altcoins.
Litecoin LTCBTC Monthly Chart
The LTCBTC chart above highlights a bearish trend with the Bitcoin holders seeing more gains compared to LTC holders.
All attempts by LTC bulls against the BTC are to no avail as the price fails to close above a significant resistance, even with a consecutive bullish divergence in June and October ’21. We’ll need to see a price break above 0.007220 for confidence in a general price recovery for the LTCBTC.
However, the LTCUSDT is still promising with bullish recovery signals from the higher time frame, all the way down to the intraday charts. Read on as we uncover the significant chart patterns and price levels driving the LTCUSDT crypto pair.
Litecoin LTCUSDT Weekly Chart
The Litecoin price maintains a bullish outlook even after the market-wide price plunge on 10 May ’21, as the relative strength index trade above level-25 since 27 July ’20.
A recent bear-trap candlestick pattern on 27 September ’21 brings hope to LTC holders who have seen stunted returns and recovery compared to BTC and other ALT coins.
Litecoin LTCBTC Daily Chart
The 28 September bullish divergence on the daily chart above supports the bear-trap candlestick pattern on the weekly time frame, forcing the LTC price into an upbeat trajectory as old resistance [$187.00] of 24 September are now switched into support.
Bullish momentum at press time forced the LTC price above the 07 October high [$187.0] with a projected target at $240.00.
Litecoin LTCUSDT 4 Hr Chart
The regular bullish divergence support on 12 October ’21 08:00 fixed the LTC support level at $166.30 and advanced further to break the 14 October ’21 00:00 bearish divergence resistance, and flipping it into a new support level.
Although the RSI confirms a new uptrend at press time, the RSI values could drop below level-75, forcing a correction of the LTC exchange rate. The upward trend should persist as long as the RSI does not drop below level-25.
Litecoin LTC Intraday Levels
- Spot rate: 189.0
- Mid–Term Trend [H4]: Strong Bullish
- Volatility: High
- Support: $166.30 and $180.90
- Resistance: $193.00