Recent studies have uncovered that the potential threat of a “51% attack” on Bitcoin has been significantly underestimated by the market.
According to research conducted by Campbell Harvey, a finance professor at Duke University, an attacker could potentially dismantle the Bitcoin network with an expenditure of approximately $6 billion.
Harvey pointed out that while both Bitcoin and gold are perceived as safeguards against currency devaluation, Bitcoin is subject to far greater vulnerabilities compared to gold.
The study suggests that within just one week, an assailant could gain control over the Bitcoin network. This would involve acquiring around $4.6 billion in hardware assets, investing $1.34 billion in constructing data centers, and incurring weekly electricity expenses of about $130 million. Additionally, attackers might profit from shorting Bitcoin in derivatives markets due to its price drop—potentially covering their attack costs entirely.
Nonetheless, some specialists argue this scenario is exaggerated. Matt Prusak, President of Bitcoin USA, contended that executing such an attack is practically unfeasible: “Gathering and deploying mining equipment takes years; moreover large-scale short transactions require substantial collateral which can be challenging—exchanges may halt transactions if they detect any suspicious behavior.”
*This information should not be considered investment advice.