The Canary of Bitcoin Cash


Welcome, welcome to One Minute Crypto!
I’m your host, Chronos, and today, I want
to talk about 51% attacks against the Bitcoin
Cash network.
When Bitcoin Cash first separated from Bitcoin back
in August of 2017, I predicted that it needed
to maintain at least 5% of bitcoin’s security
in order to survive.
Otherwise, it would just be too vulnerable to an
attack by bitcoin miners.
And since mining power basically tracks price, that
meant it needed to stay above 5%
of the price of bitcoin.
And it did, for a long time.
But two years later, at the time of this recording,
the price of Bitcoin Cash sits below 3%, which
means that just 3% of bitcoin’s miners could
band together and overpower the Bitcoin Cash
blockchain.
And yet it still hasn’t been attacked.
What’s going on?
It turns out, I was wrong.
The threshold is nowhere near 5%, and now we have a big clue about where it actually
is.
I want to thank our sponsor, by the way, Americas
Cardroom, the most trusted US online poker
site.
They are bringing us the massive Venom Tournament
starting November 27th, with 6 million dollars
in guaranteed prizes, and a million dollars
for first place.
Check them out at Americascardroom.com.
So the reason we know that security threshold
is nowhere near 5% is because of another blockchain,
called Bitcoin SV.
It split off from Bitcoin Cash
in November of 2018, and it has been running
at about 1% the price of bitcoin.
That’s right, just 1%, which means it has
1% of the security of bitcoin — and it hasn’t
been attacked either!
Bitcoin SV sort of acts as a canary for Bitcoin Cash:
it’s an early indicator of potential danger,
because if miners want to attack a weak chain,
they’re likely to target it first, since its
defenses are so much lower.
It’s like leaving your front door unlocked
all the time, but your neighbor is leaving
their front door wide open.
Anyone looking to cause trouble would probably
go after the easier target first, and apparently,
even 1% of bitcoin’s security is enough to
keep attackers at bay.
In a strange way, the continued existence
of Bitcoin SV serves as a sort of shield for
Bitcoin Cash.
I know this is a strange theory, so I want
to hear your thoughts on this.
Post below.
I’m Chronos.
Thanks for watching!

6 thoughts on “The Canary of Bitcoin Cash

  1. This video is sponsored by Americas Cardroom, the most trusted US online poker site. Check out their massive Venom Tournament starting November 27th, with six million dollars in guaranteed prizes! https://americascardroom.com

  2. Even with only 1% of the hashing power, a "retaliatory strike" is possible with a feather forking attack, right?

  3. The theory isn't strange, it makes sense. However it assumes that the goal of the attacker is to make money.That's a pretty strong assumption. In part because 51%-attacking a chain isn't easy to monetize on and in other part because there might be other motivations to attack a chian. There might well be attackers just simply wanting to harm the chain and wreak havoc. Those might well want to harm BCH specifically and not care about BSV.

  4. The reason why nothing has happened is that literally no one cares about bch. It's a dead project with no recognition that brings little in terms of long term solutions that btc couldn't manage (on or off chain), is way more centralised, roger ver makes himself look rediculous, it isn't getting any actual adoption that compares to btc, no institutional onramps, etc etc
    I think you and this channel are great, but I hope sometime you'll look at your favouritism with a tabula rasa view and maybe just maybe let this dead project be

Leave a Reply

Your email address will not be published. Required fields are marked *