Security Concerns Increase As Crypto Mining Drops
It’s been a bloodbath for cryptocurrencies, investors speculated that the crypto market would undergo a correction and the values of all cryptocurrencies would normalize. However, in the past month, things aren’t looking good as prices of the most popular currencies continue to fall.
This drop in cryptocurrency prices has also led miners in China to sell their mining rigs by the kilo. The price drop has made it nearly impossible for crypto miners to make a profit from their operations.
If this wasn’t bad news, there are fresh fears among crypto holders that the possibility of a 51% attack is highly likely as the overall mining pools have been reduced across the cryptocurrency spectrum.
Based on the research published by Autonomous Research LLP and Bloomberg, a minimum of 100,000 miners have stopped operations as it is no longer cost-effective. Since the start of September, over 1.4 million servers have been disconnected from the network.
It is speculated that Bitcoin will be profitable only when its value is at least $4500. At the time this news was written, Bitcoin is trading at $3862.74.
This has resulted in the falling of Bitcoin’s hash rate by more than a third since summer. Only bigger mining operations are able to make profits in such conditions. Investors fear that this drop in mining companies and individuals will greatly increase the change of a 51% attack.
In a 51% attack, if a person can control more than half of the blockchain, they can alter transactions and steal cryptocurrencies.
If a market recovery occurs, however, the security will automatically increase as well. It remains to be seen when this change will occur.