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One mining pool controls a dangerously dominant share of BitcoinSV’s hash rate

One mining pool controls a dangerously dominant share of BitcoinSV’s hash rate

The integrity of Bitcoin Satoshi Vision (BitcoinSV) remains in question, as one group of cryptocurrency miners approaches control of the network‘s hash rate.
Calvin Ayre’s CoinGeek has become BitcoinSV’s primary mining pool. Right now, data shows it controls 46 percent of the total computing power on the network. CoinGeek has also mined 52 percent of BitcoinSV blocks over the past day.

If CoinGeek’s hash rate does end up exceeding 51 percent by itself, it will mark the third time in six months.

The impending struggle comes just one week after an odd series of “block reorganizations” rocked the BitcoinSV network to a standstill that lasted over an hour.
More than 51 percent allows double-spending
When one entity (alone or as part of a colluding group) controls more than 51 percent of a blockchain‘s hash rate, those parties alone decide what transactions are accepted (and rejected) by the network.
This situation is considered an extreme security risk, as all network participants are forced to trust a centralized group to not get up to any funny business. In this case, that group would be Calvin Ayre and CoinGeek.
Assuming hash rate majority also allows bad actors to ‘double-spend.‘ This is an attack that spends cryptocurrency with intent to stop the transactions before they’re confirmed by assuming more than 51 percent of a blockchain‘s hash rate.
It should also be said that nChain operates “BMGPool,” which currently runs 29 percent of BitcoinSV’s hash rate. nChain is the software firm founded by Craig Wright (one of BitcoinSV’s lead brains).
At present, CoinGeek and BMGPool make up 75 percent of BitcoinSV’s hash rate.
CoinGeek had 51% of BitcoinSV’s hash rate twice before
CoinGeek’s miners controlled over 51 percent of Bitcoin SV’s hash rate for a full week (November 18 to 25) several months back.

The ‘worst’ day was November 24, when it controlled 61 percent. The same thing happened from March 2 to 8, when CoinGeek operated more than 51 percent of BitcoinSV’s mining, often for days at a time.
Having just one mining pool in charge of more than 51 percent of a blockchain‘s hash rate is certainly alarming.
Examples of 51-percent attacks suffered by blockchains are numerous, including the recent Ethereum Classic incident that saw $1.1 million worth of cryptocurrency double-spent by malicious miners.
When this happened to Bitcoin, people really cared
Curiously, when old-school Bitcoin (BTC) mining pool Ghash.io approached hash rate majority for the first time in 2014, the group promised it had never, and would never, participate in a 51-percent attack on Bitcoin, or attempt any double-spending.
At the time, prominent Bitcoin developer Peter Todd even said he had sold 50 percent of his Bitcoin after he deemed the centralized power of Ghash.io far too risky.
To date, it appears CoinGeek is yet to follow the example set by Ghash.io. Early last year, it did pledge to monitor the Bitcoin Cash network for potential double-spenders.
That was back when the group was still dedicated to Bitcoin Cash, a fork of Bitcoin supported by Roger Ver.
A lot has happened since then, you can read about some of it here.
Did you know? Hard Fork has its own stage at TNW2019, our tech conference in Amsterdam. Check it out.

Published April 26, 2019 — 14:56 UTC

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Bitcoin Beats Other Cryptos in ‘Smarter’ Bull Market, Says Billionaire Investor

Bitcoin Beats Other Cryptos in ‘Smarter’ Bull Market, Says Billionaire Investor

Bitcoin Beats Other Cryptos in ‘Smarter’ Bull Market, Says Billionaire InvestorBitcoin’s dominance will only be more pronounced in this bull market and that’ll show in its value, according to Mike Novogratz. | Source: ShutterstockBy CCN: Mike Novogratz, the billionaire CEO of Galaxy Capital and a former hedge fund manager at Fortress Investment Group, believes alternative cryptocurrencies, or altcoins, will be outperformed by bitcoin in the bull market.Not this time. Market getting smarter. $btc will outperform.— Michael Novogratz (@novogratz) May 19, 2019The statement of Novogratz comes after the bitcoin price risen by more than 115 percent year-to-date against the U.S. dollar, leading the crypto market to add $124 billion to its valuation.Will bitcoin continue to outperform altcoins?Historically, altcoins have relied on the price trend of bitcoin and have rarely demonstrated independent price movements in extended time frames.Altcoins typically surge in value when the bitcoin price shows stability at a tight price range, leaving investors to take high-risk and high-return options over the dominant cryptocurrency.The optimism towards bitcoin, despite the emergence of sophisticated altcoins, is well founded due to the involvement of major financial institutions in the likes of Fidelity and TD Ameritrade building infrastructure on top of bitcoin.Fidelity and ICE, the parent company of the New York Stock Exchange, are initially launching custodial services for bitcoin, targeting institutional investors.According to TD Ameritrade’s executive vice president Steven Quirk, tens of thousands of clients at the brokerage already trade crypto assets in some capacity.But, traders suggest that if the sentiment around the crypto market remains overwhelmingly positive, investors will eventually explore alternative opportunities for high-return trades, which then may fuel a rally for altcoins.One cryptocurrency trader said that bitcoin is likely to climb further throughout 2019, triggering a healthy market for altcoins:The rest of this year will be characterized by rapid BTC advances, healthy corrections and periods of sideways price action, when altcoins will fly. Put that nonsense rhetoric about waiting for capitulation and still not making our bear market lows away. Wrong cycle.Full on degen altcoin season still on track for June. Next few weeks, as BTC finds a range, we’ll continue to see the popular altcoins bounce back 1st. In June, all altcoins across the board will bounce back hard. More disbelief on its way.The concern of some investors like Novogratz on the prospect of a booming market for altcoins is that many retail investors were hurt in the 2017 bull market taking high-risk trades, trading against stable assets like bitcoin.As the market matures and as investors in the market become smarter, Novogratz indicated that the appetite for altcoins could decline.The crypto market has added more than $100 billion to its valuation year-to-date (source: coinmarketcap.com)Similarly, Jeff Sprecher, the chairman of the New York Stock Exchange, said in November 2018:Somehow bitcoin has lived in a swamp and survived. There are thousands of other tokens that you could argue are better but yet bitcoin continues to survive, thrive and attract attention.At the time, Sprecher emphasized that Bakkt, a futures market operator created by NYSE’s parent company ICE, will focus on building a regulated infrastructure for bitcoin first ahead of other assets.Sentiment is generally positiveOn May 17, as CCN reported, the bitcoin price plummeted by 18 percent within hours following an unexpected 5,000 BTC sell order on Bitstamp that led prices of bitcoin and ethereum to crash on BitMEX.The market absorbed the abrupt decline in the bitcoin price fairly well, indicating that the confidence in the near-term price trend of crypto assets remains strong.While investors have cautioned that bitcoin has shown oversold conditions in recent weeks as it surpassed key resistance levels, the momentum of the asset could prevent it facing a large correction some expect would occur in the near-term. About The AuthorJoseph YoungHong Kong-Based Finance and Cryptocurrency Analyst. Contributing regularly to CCN and Hacked. Providing unique insights into the crypto and fintech space since 2012.This article was edited by Samburaj Das.
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Bitcoin’s price has pumped beyond its ‘intrinsic value,’ JPMorgan says

Bitcoin’s price has pumped beyond its ‘intrinsic value,’ JPMorgan says

Banking behemoth JP Morgan Chase & Co. has taken another shot at Bitcoin, BTC claiming the cryptocurrency‘s latest rally has pushed its price beyond its “intrinsic value.”
“Over the past few days, the actual price has moved sharply over marginal cost,” JPMorgan analysts wrote in a note obtained by Bloomberg. “This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

To come to this conclusion, the JP Morgan team treated Bitcoin as a commodity, calculating its “cost of production” based on a number of factors, including estimated computational power, electricity expense, and hardware energy efficiency.
“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging,” the analysts continued. “Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

Bitcoin‘s price briefly dropped from almost $8,000 to $7,050 on May 17, after $250 million of long positions got liquidated on BitMEX. Since then, BTC has surged back to $7,893 at the time of writing.
By now, JP Morgan has made a habit out of thrashing Bitcoin and cryptocurrencies. Back in 2017, CEO Jamie Dimon called the currency a “fraud” – a statement he later softened, suggesting he simply doesn’t care about Bitcoin. Since then, JP Morgan launched its own blockchain-based “digital currency,” which was neither a cryptocurrency, nor a stablecoin.

Published May 20, 2019 — 11:54 UTC

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