A Cornell University Professor has found that most proof of work (PoW) cryptocurrencies can be hacked using the 51 percent method for less than $1 million per day! Professor Emin Gün urges cryptocurrency investors to reconsider whether they want to keep their savings in any cryptocurrency that costs less than $1 million a day to attack.
Bytecoin, Bitcoin Private and Ubiq are among those susceptible to 51 percent attacks and according to 51Crypto these cryptocurrencies can be attacked for less than a thousand dollars per hour. A 51% attack allows hackers to redirect control over the blockchain network, the create duplicate transactions that create new tokens.
The occurrence of 51% attacks also highlights the issue of centralization within the cryptocurrency market as operators of huge mining farms could easily launch such attacks against smaller coins. Over the last 2 months XVG has endured two nearly identical 51% attacks which allowed hackers to mint millions of dollars worth of new coins which are then covertly sold across a spread of exchanges. The double hack of Verge (XVG) has provoked a discussion of how many other cryptocurrencies with small market caps could suffer attacks.