Major crypto exchange Coinbase has stopped bitcoin SV (BSV) trading following the latest in a string of attacks on the network.
“Due to the 51% attack that has occurred on BSV today we are stopping all BSV trading,” the exchange announced on Tuesday.
Bitcoin SV suffered a 51% attack on Tuesday morning, when “some serious hashing power was unleashed on the network,” according to Lucas Nuzzi, network data product manager at crypto intelligence firm Coin Metrics.
Nuzzi said that there had been an attempted attack first, followed by a successful one, during which “over a dozen blocks are being reorgd & up to 3 versions of the chain being mined simultaneously across pools.”
Coin Metrics further confirmed this, saying that the firm’s own blockchain security monitoring tool FARUM identified the attack. “All of our FARUM nodes witnessed a deep reorg with a max depth of 14 blocks,” they said. “No further reorganization events have been witnessed, but there are still synchronization conflicts taking place on major mining pools.”
The Bitcoin Association, an organization focused on Bitcoin SV, said that they are aware of the attack, and that the miners are actively responding to the situation. They’ve also recommended that node operators mark the fraudulent chain as invalid.
“This will immediately return your node to the chain supported by honest miners and lock the attacker’s chain out,” they said.
However, the network is reportedly still suffering issues.
These newer reorgs are disappearing faster from explorers (either being blacklisted or re-reorged); I've given up on tracking them. The BSV chain is still split. TAAL has abandoned Nakamoto consensus and confirmations are currently useless. 🤡 pic.twitter.com/j3Rk3eO5lM— WizSec Bitcoin Research (@wizsecurity) August 4, 2021
Bitcoin SV had already seen four attacks in late June and early July. The attack involved block reorganisation, where a chain of competing blocks is created in parallel with the correct chain, per the Bitcoin Association.
It’s unclear whether this latest one is done by the same attacker, described by the organization as “an unknown miner operating (as an apparent impersonator) under the ‘Zulupool’ moniker.”
The 46th coin by market capitalization dropped 5.5% in the past 24 hours, currently trading at USD 134 (at 7:44 UTC). It’s up less than 1% in a week and down 11% in a month. Overall, the past year has turned red for the coin, depreciating over 40% in that time.
It had hit its all-time high of nearly USD 490 in mid-April, dropping 73% since.
Chamath Palihapitiya: Bitcoin Has Effectively Replaced Gold
The argument claiming that bitcoin is or will someday be better and more utilized than gold has received further support from the CEO of Social Capital Chamath Palihapitiya. In a recent interview, he asserted that BTC has already replaced the precious metal, and its market cap will soon readjust to show it.
Bitcoin Has Replaced Gold
The past few years saw the debate of bitcoin versus gold growing outside the cryptocurrency community, with numerous prominent names from other financial industries weighing on it. While some, like Peter Schiff, continue to reject BTC as a valid competitor to the yellow metal, others, like Michael Saylor, Anthony Scaramucci, and Steve Wozniak, see more merit in the cryptocurrency.
Chamath Palihapitiya, the venture capitalist, engineer, and founder of Social Capital, seems to be a member of the second camp. Speaking to Delivering Alpha, he said it was hard for him to provide a specific price tag for BTC, even though he previously predicted that it will reach $200,000, but outlined a significant milestone that bitcoin has achieved in his eyes.
“Bitcoin, I think, has effectively replaced gold. And it will continue to do so.” As such, he added that BTC’s market capitalization “is just going to grow.”
Palihapitiya has previously praised the cryptocurrency and its merits while urging investors to allocate at least 1% of their portfolios to it. Additionally, he said his introduction to the asset was roughly a decade ago, and buying portions of it has become his “best investment bet.”
Sold All Tesla Shares
Palihapitiya was also known for his support for Elon Musk’s electric vehicle giant Tesla. However, he recently revealed that he has disposed of his entire position “in the last year or so” to fund other investment projects.
“I don’t have an infinite pool of capital. So when I have these ideas, the money has to come from somewhere.”
During the same interview, Social Capital’s CEO also expressed concerns about the growing inflation rates. To prepare for the already evident consequences, he has focused on accumulating hypergrowth companies, cash-generating businesses, and a few assets that lack correlation with those two, such as bitcoin.
“In an inflationary environment, in my very simplistic view of the world, I want to own three things: hypergrowth, because hypergrowth can always out-run inflation, cash-generative assets, and then I want to own non-correlated assets.