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Bitcoin (BTC) Network at Risk Due to High Centralization: Report

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Sat, 02/01/2020 - 12:08
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  • Bitcoin's (BTC) decentralization remains its main selling point, but, ironically, the coin's network is getting more and more centralized

Cover image via 123rf.com
Contents

A new TokenAnalyst report sheds light on the grim state of the Bitcoin (BTC) network. 

The London-based blockchain analytics startup found out that only five China-based mining pools control a staggering 49.9 percent of the coin's total hashing power. 

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Bitcoin's China problem

The fact that China, the country with a very authoritarian government, holds sway over Bitcoin is nothing new. As of December 2019, it was responsible for 66 percent of the total hashrate after its share increased by about six percent in just six months. 

This is an alarming trend for those who strongly believe that Bitcoin is a decentralized digital currency. 

However, the problem goes deeper than that — if these five entities were to merge into one, they could perform a 51 percent attack, thus forcing reorganization in the Bitcoin blockchain.

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Bitcoin Mining Pools Continue to Face Tough Competition: Blockchain Research - READ MORE

Are these concerns overblown? 

While it's hard to argue with statistics, Chinese mining pools might not be that big of a threat to Bitcoin. It is important to note that one shouldn't confuse mining pools with actual miners. If miners decide to wreak havoc with the network, their blocks will be rejected by nodes

On top of that all, trying to attack the Bitcoin network is very expensive. Messari recently estimated that it would cost around $21 mln to attack the Bitcoin network only for one day. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Sun, 03/29/2020 - 19:38
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  • Bitcoin (BTC) scammers know no quarantines or self-isolation. Dozens of fraudulent airdrops falsely endorsed by Bill Gates ask YouTubers to send in their Bitcoins.

Cover image via stock.adobe.com
Contents

Typically, fake YouTube airdrops are quite similar to each other. With the current pandemic enraging across the planet, a series of scams that impersonate Bill Gates have some distinct features.

With Bitcoin (BTC) Price Drop, Scammers are Getting Greedy

Just like in several other previous cases, the fraudsters launch fake 'live streams' on YouTube, asking users to send in their Bitcoins (BTC) in order to get redouble the initial amount.  An 'entry ticket' into to this scam starts at 0.1 BTC which is more than $650. With previous scams, it was much cheaper.

Fake YouTube Bitcoin (BTC) airdrop
Image via YouTube

The scammers also publish the URLs of this campaign, which are linked to suspicious websites. Unlike previous cases, fraudsters launch multiple live streams simultaneously. At press time of this article, at least two of them were active.

Multiple scam streams on YouTube
Image by YouTube

According to statistics, the average popularity of one live stream is about 30,000 viewers.

Very Bad Idea

Alongside that, launching fake airdrops on behalf of Microsoft's Bill Gates isn't a slam dunk for the fraudsters. It may seem ironic, but Mr. Gates is a prominent critic of cryptocurrencies, particularly of Bitcoin (BTC). He is sure that digital assets represent a kind of a ‘greater fool theory’ type of investment.

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Cryptocurrencies kill, added Mr. Gates. To him, its only use-case besides short-term speculations is illegal funding for drug trafficking:

Right now cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way.

The U.Today team will one more time state that no airdrop will be conducted without the notification from an official website of a product or token. Any YouTube, Medium, and/or Telegram announcements may shill scammers. Never send your money to unknown persons.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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