how-cryptocurrencies-go-to-zero,-according-to-“the-economist”

How cryptocurrencies go to zero, according to “The Economist”

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Less than a week after declaring the death of Bitcoin, the English magazine ‘The Economist’ has again published an article predicting the end of cryptocurrencies. This time, he makes an essay on how governments, miners and investors can unite to try to destroy digital assets.

In summary, the newspaper states that cryptocurrencies will only die “if everyone stops using”

, but classifies this possibility as “extraordinarily difficult”, as Bitcoin and other cryptocurrencies are extremely popular now and gaining more and more adoption.

“The current high value of bitcoin and Ethereum makes this even more difficult.”

– says the Journal.

Miners and governments

Citing coordinated actions on how governments and miners could attack cryptocurrencies, ‘The Economist’ points out that destroying Bitcoin is a possibility with attacks .

An attack on a blockchain by a group of miners who control more than 50% mining hashrate – the sum of all computational power dedicated to mining No – it’s called a 51 attack.

“The security of these networks – measured by the amount someone would have to spend to attack them – is now in the range of US$ 5 billion to US$ 10 billion. It would take a government or a very wealthy individual to mount such an attack. And even if Elon Musk was interested, he seems a little busy right now.”

In the attack, attackers can interrupt the confirmation and ordering of new transactions, thus, they can rewrite parts of a blockchain and reverse transactions.

“The more valuable the tokens, the more energy is needed to attack a proof-of-work network like Bitcoin, and more money to attack a proof-of-stake blockchain like Ethereum.”

Collapses

The Economist also cites recent collapses of several companies and projects in the sector, such as Terra(Luna) and FTX. The newspaper acknowledged that although companies have broken and damaged the industry’s image, cryptocurrency protocols continue to work, the problem being companies and supposed sector leaders.

Opinion is shared by Bitcoin maximalists who, in all cases of broker failures or industry scams r, warn other users that nothing has changed for bitcoin, with the protocol continuing to function normally as its code was written.

However, says the newspaper, the end of companies can put in risk to technology, since miners can abandon such projects and thus leave their networks weak against hacker attacks.

“The platforms of DeFi and the protocols continued to work, even as the most business-like companies imploded one by one. But the collapse of these companies could jeopardize the underlying technology, taking away chunks of their value, making chains more exposed to potential attackers, and forcing miners or stakeholders to shut down their machines.”

Next, “The Economist” recognizes that although the industry has gone through moments of scandal, resulting in a breach of confidence and a decrease in volume, adoption continues and the scenario of cryptocurrencies ceasing to exist is probably impossible.

“The reputation of cryptocurrencies has been damaged before. They have dropped in value several times in history, and despite fewer people using cryptocurrencies as a result of meltdowns, it is very hard to imagine that the number is enough to drive their value to zero.”