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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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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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