Yesterday Bitcoin Gold (BTG) was hit with a 51% attack, and more than $18 million were stolen. This has led to a further drop in an already weak crypto market, causing Bitcoin to drop below $7500. While the attack has been contained, it has caused some skepticism in the stability of the crypto market, given that it comes just days after similar attacks on Verge (XVG) and Mona coin. So what’s the future?
With so much negative vibes coming in, one can conclude that crypto is undergoing a test of fire. We are at a point where the entire market is going through a shakeup. A shakeup that will see the weak coins die off the market. That’s because, with the risks of such attacks continually looming over crypto, people are likely to pivot towards bigger coins like bitcoin (BTC), as well as those that successfully handle such attacks, and survive. Smaller less useful coins are likely to die a slow death in the near future. As such, this phase of crypto might be tough, but it is sieving off the weak coins, and will make crypto space even better in the future.
This attack and the others that have taken place in the last few days, also strengthen the case for decentralized exchanges. The double spend attack on bitcoin gold (BTG) was possible because of the centralized nature of exchanges. That’s why exchanges have lost millions of dollars in this attack. However, this would be next to impossible in decentralized exchanges where there are no third parties involved in storing coins, and transactions are done through atomic swaps. In the future, we are likely to see an increased pivot towards decentralized exchanges. Big exchanges such as Bitfinex and Binance are already working in this direction. This will not only minimize the risks of a double spend attack, but also completely eliminate the risk of exchange hacks, which are a huge threat to the stability and credibility of crypto. That stability will see the value of the crypto market rise over time to levels we have not seen yet.
In essence, what is happening now could play a role in the reemerge of crypto, bigger than it ever was in the past. We are headed into a future where only the best projects will be in the market, and the security issues that risk the very fundamentals of the market, could be a thing of the past. This will not only stabilize prices, but also increase the scope of adoption of the crypto market. That’s why it makes sense to buy the dips and await the coming Bull Run.
For holders of Bitcoin gold (BTG), this coin looks like one of those that will survive. They have handled the attack quite well, to subvert a repeat attack. By urging exchanges to increase the number of confirmations to 50 blocks, a repeat attack might be virtually impossible to execute. This explains why Bitcoin gold (BTG) has recovered some of it previous losses, and is holding steady. The effects of this attack won’t last, which makes it a perfect opportunity to load up on good projects at low prices.