Bitcoin Gold Hit by 51% Attacks

Cointral Marketing Manager
Bitcoin Gold Hit by 51% Attacks

The Bitcoin Gold (BTG) network was hit by 51% attacks on 23-24 January and announced that 29 blocks have been eliminated. According to the report, it is said that $ 70,000 was damaged in two days and more than 7,000 BTGs were double spent.

In May 2018, the Bitcoin Gold (BTG) blockchain suffered 51% attacks for the first time, with a loss of more than $ 18 million. BTG is a fork of the Bitcoin protocol, but does not use the SHA-256 consensus algorithm, such as BTC, BCH or BSV. The Bitcoin Gold network uses a variant of an Equihash algorithm (Equihash 144, 5 or “Zhash”) that can be removed with the GPU.

The creators of Bitcoin Gold believed that, unlike ASIC devices, it would be more decentralized to create a Bitcoin fork that can be removed with GPUs. However, things started to get worse in the spring of 2018, when a miner took over 51% of the general BTG hash rate. After this attack, the loss was close to $ 18 million. Afterwards, Ethereum Classic (ETC) and Vertcoin were also subjected to a 51% attack.

On Thursday and Friday last week, it was announced that more than 51% of the chain hash rate was captured and the attack still continues. The Bitcoin Gold blockchain was attacked by twice on the second day; while $ 19,000 was spent on Thursday, another $ 53,000 was spent on Friday.

For example, on Thursday at 18:01, 14 blocks were deleted and 13 blocks were added instead. As a result of this attack, the attackers made a profit of $ 19,000. In another attack on Friday at 00:04, 15 blocks were deleted and 16 new blocks were added in place of the deleted blocks. The cost of this attack was determined as 5,297 BTG worth $ 53,000.

A Bitcoin Gold advocate on Reddit used the following statements:

Most of the community is aware that there are serious problems and complaints about the situation. It is clear that 51% of the attacks were carried out by ASIC machines. Why don’t Bitcoin Gold developers update and create an algorithm? This cryptocurrency is no longer a good investment for those who want to buy it. I think the developers don’t understand this job very well.

Investment information, comments and recommendations contained herein are not included in the scope of investment advisory. Therefore, making an investment decision based solely on the information and comments contained herein may not produce results that are in line with your expectations.