Our blog contains short snippets from our full research coverage. We release new content regularly, so check back often for the latest insights.
Since its inception, the best known vulnerability of the bitcoin protocol has been the “51% attack”. This attack occurs when one party controls more than half of all processing power on the protocol, effectively giving them control over the entire blockchain. At this point, the majority holder could rewrite previous blocks, allowing them to double-spend bitcoins. Even though this scenario was considered unlikely (due to the downside risk it posed to bitcoin pricing), it’s exactly what happened.
I was recently at a digital currency conference, and one of the speakers brought up an interesting idea: bitcoin is more centralized than we think. As anyone who follows the bitcoin startup landscape knows, a few large players dominate bitcoin mining hashrate:
As a analyst following Bitcoin full-time for several months, I have been keeping up with developments in the cryptocurrency, attending Bitcoin meetups in Silicon Valley, and talking to Bitcoin startup founders. One key question that keeps coming up is — what is the intrinsic value of Bitcoin? Bitcoin proponents have made several arguments for it and I soon became an evangelist. The detachment of Silicon Valley from the rest of the world probably contributed to my conversion. But deep down, I have always had a nagging feeling that something was ‘off’. I could not find an argument that convinced me one-hundred-percent that Bitcoin had intrinsic value — until today.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.