New Messari Data: Bitcoin’s Blockchain Takes $7 Million Per Day to Stay Secure, ETH $2 Million
The cryptocurrency data portal Messari ha recently showed the world a new report in which it explains that the Bitcoin blockchain network costs around $7 million USD daily to be secured. According to the data gathered by the portal, this is how much is paid to miners in order to approve the proof of work transactions.
PoW Miner Revenues, our newest custom asset screener summarizing fees, coin issuance, blockchain storage growth, and more for top Proof-of-Work protocols.https://t.co/9xsY5IyaRJ pic.twitter.com/QZdQxTXpyi
— Messari (@MessariCrypto) March 25, 2019
Messari shows that Bitcoin is the network that spends the most money paying miners, as it issues almost $7.4 million USD in Bitcoin rewards every 24 hours. Ethereum, in contrast, spends only $1.85 million USD, six times less money than Bitcoin.
Overall, both companies were spending around 0.1% of their current market cap in rewards, though, which probably means that the biggest difference is their actual price.
The Importance Of Being Secure
These were the only two networks which had a daily value over a million USD. The only one to even get close to them was Litecoin, which spends $936 thousand USD daily. Other important tokens which were also a part of the research were Zcash ($400 thousand) and Bitcoin Cash (only $280 thousand USD). They were followed by Dash, Ethereum Classic and Monero.
Is it worth spending all this money, though? It seems that it is because the more money it is spent, the more money a hacker would need in order to make a successful 51% attack, which could disrupt the whole network.
The Bitcoin network is so big and successful that it spends a lot of money and this is actually very good since when you count all that a hacker would have to spend to disrupt the network with enough hash power, it simply would not be profitable.
First, the hacker would basically need to spend a lot of money on electricity and mining devices and when he finally overtakes the network, its prices would tank because it would suffer from a low trust. He would basically have a difficult time cashing out as the value of the BTC network would plummet.
Banks Also Spend An Insane Amount Of Money In Security
While the value that the Bitcoin network spends with security may be high, you should take into account that banks also spend a lot. JP Morgan Chase spent $500 million USD in cybersecurity in 2016 alone. Citibank spent $300 million USD. Yahoo spent $250 million USD.
If you just take these three banks into account, they spent almost $1.1 billion USD to improve their security, a number which is not so behind Bitcoin. When you look at the situation this way, it is clear that Bitcoin is actually cheap when you take into account how decentralized it is.