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Why do Cryptos like Verge (XVG) Suffer from 51% Attacks?

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Verge
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Cryptocurrencies have already demonstrated that they can be an extremely profitable type of business. With more and more of them appearing, more and more companies are starting to study, develop, and use them. Some have even launched their own coins, and have managed to advance and become quite a force. However, a lot of them forget to properly handle one very important aspect of cryptos, and that is network security.

Blockchain security

A lot of people have heard that blockchains are safe, transparent and that they can guarantee security for the cryptos. Despite the fact that this may be true in some cases, thinking that it automatically applies to all of them is quite an assumption. The fact is that this is still a very much new technology that needs to be perfected and developed further, especially when it comes to security. The fact that they are holding cryptos which can be very profitable today, makes them an even bigger target. Basically, the risk of attacking blockchain is high and costly, but if done right, the attack like this can bring a lot of rewards.

Big platforms know this all too well, and they were capable of protecting their assets. Their blockchains cannot be conquered due to the large necessity of hashing power that is needed to take the blockchain over. If someone did try to do it, they would have to spend much more than they would gain, which is why the hackers usually leave them alone. Small platforms, however, are much easier to hack and steal from. Ethereum Classic (ETC) is a pretty good example of this. It uses Ethereum’s technology, which the hackers have already studied and familiarized themselves with. However, ETC cannot afford the same hash rates, which makes it much more vulnerable.

The problem with Verge and Bitcoin Gold

Cryptos like Verge (XVG) and Bitcoin Gold (BTG) became vulnerable to making similar decisions. They have decided to resist mining on the industrial scale and instead wanted to provide individuals with a mining opportunity without them having to join mining pools. This means that those with more computing power can easily take over their entire blockchain if only they can acquire enough hashing power. In some cases, this is ridiculously easy.

As stated earlier, large currencies have a much better protection, and cannot be conquered via 51% attacks. For example, the entirety of Nicehash is only capable of matching 2% of BTC, or 3% of ETH. On the other hand, BTG and XVG would fall without any issues.

ETC has the same problem, and acquiring enough power to conquer the network requires approximately $1.5 million. This might seem expensive at first, but if someone were to hack it, they would easily be capable of taking over $55 million, which is more than enough for someone to actually try this.

Of course, acquiring the proper hardware, paying the electricity and similar preparations are needed.

How can this stop?

A lot of platforms that have suffered from 51% attacks were mostly following the same principles. Verge, for example, was hacked several times in the previous months. Despite the fact that platforms like Verge and Bitcoin Gold are pretty well-known these days, they are not big or strong enough to stop this kind of attack.

Some researchers propose that the platforms might protect their assets from this kind of attacks via Proof-of-Stake protocols, and strong upgrades that would protect their algorithms. In order for this to happen, though, the companies need to make the proper move.

Others have also stated that cryptos can only choose two out of the following three: security, scalability, and decentralization. The decentralization is the whole point of cryptos, but the other two aspects cannot be ignored either. And yet, achieving all three seems to be difficult, if not impossible.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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