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The problem I think is that there are 25 cryptocurrencies bigger than it. Particularly with its form of mining, it's trivially easy for say a big player in the
by IkmoIkmo 8y ago
The problem I think is that there are 25 cryptocurrencies bigger than it. Particularly with its form of mining, it's trivially easy for say a big player in the 10th largest currency to shift their mining power to a smaller one like Bitcoin Gold, overpowering everything else.
Normally the non-51% attack argument is that anyone who invests enough in 51% of the infrastructure and has sufficient coins to profit from double-spending, is very unlikely to do so because it would render the coins and mining equipment worthless or at least worth less than the investment had cost.
That'd be true for bitcoin, but not for a GPU-mined 26th largest cryptocurrency. You can completely destroy it, cash out and use your equipment elsewhere on coins in which people still have faith.
- vasilipupkin 8y agoso how exactly do you cash out? by exchanging double spent coins for btc or usd? but then can't exchanges just stop that from happening?
- bitreality 8y agoI'm not even sure you would need to exchange it to another coin. You would never be exchanging it to USD because USD withdrawals will require you to identify yourself and a corresponding bank account. To withdraw crypto you just need an address. So you can exchange it to BTC or ETH and withdraw. Or you can just deposit it and withdraw it after. Most exchanges just mix customer funds together, so as long as the exchange has enough BTG balance minus the double spent deposit, they will send you real BTG.
- Jommi 8y agoYou're forgetting that the lower you go with a cryptocurrency the less volume it has. This will have a major effect on your profits.