Bitstamp Shows How Much Money A Bitcoin Blockchain Attacker Would Need To Perform A 51% Attack
Bitstamp Shows How Much Money An Attacker Would Need To Perform A 51% Attack On Bitcoin
In a recent post on Twitter, the popular cryptocurrency exchange Bitstamp provided information about how much money an attacker would need a day to perform a 51% attack on Bitcoin’s network.
The post mentions that hacking Bitcoin with a 51% attack would require spending around $5.5 million per day just on electricity. According to BitStamp, this would be the cost for the energy per day if the cost per kWh is $0.05. There are some countries that have higher electricity prices while some regions have very cheap energy if they are located in specific places.
However, this is not all. An attacker would also require 51% of the hash power available on the Bitcoin network. This means that they would have to spend billions of dollars in ASIC hardware. In 2018, Bitcoin’s hash rate increased more than 3 times.
Clearly, attacking the Bitcoin network seems a very difficult task to be performed by a single entity, and even by a larger group of people or companies.
DID YOU KNOW: Hacking #Bitcoin with a 51% attack would require spending around $5.5M per day on electricity (if the cost of electricity is $0.05 per kWh). This is just the energy cost, the necessary equipment would cost billions. #WednesdayWisdom 💡 pic.twitter.com/GW01HiPpXv
— Bitstamp (@Bitstamp) January 9, 2019
These comments made by Bitstamp are very important since the Ethereum Classic (ETC) network has been recently affected by a 51% attack. As we wrote at BitcoinExchangeGuide, there were some block reorgs allowing attackers to perform several double spendings. This affected the network making companies and users lose more than $500,000 since the attack started.
Ethereum Classic was easier to be attacked due to the fact that its hash power is much lower than that of Bitcoin or Ethereum (ETH). This means that the money required by the attackers is substantially less.