Understanding the Real Risk Behind Bitcoin Security
Whether one is investing, gambling, or collecting Bitcoin, one must secure it and ensure it is authentic. Many people worry about the value of Bitcoin but could not tell if their Bitcoins are real. Said people are more concerned about the value fluctuating. If Coinbase says ₿5, it must be ₿5, right? That is wrong. The correct assumption should be that Coinbase is reading its Bitcoin ledger(s) and hoping the Consensus Protocol has not been hacked (virtually impossible) or purposely (real threat) modified.
The 51% Attack Threat
If a single entity or group controls more than 50% of the Bitcoin ledger, they can update everyone’s records automatically. In that case, your Bitcoin could be transferred without your consent. While very difficult, this is not impossible. Many people do not understand the Consensus Protocol, and some treat Bitcoin as just a financial asset, ignoring its technological foundation. For example, this is a quote from Forbes.com, by Billy Bambrough: “Just because there are mining operations in China, it does not mean that hardware can be seized,” Samson Mow, chief strategy officer at bitcoin development company Blockstream, told the BTC Times.
Expert Opinions and Misconceptions
Jake Frankenfield from Investopedia explains that a “51% attack” happens when miners control over half of the network’s computing power. This could allow them to alter transactions or block new ones.
At WeCcode, we emphasize that the Consensus Protocol’s purpose is to protect the network from malicious attacks and competing chains
Why the Threat is Real
Around 81% of mining pools were in China as of 2021, making a 51% attack possible — even inevitable. While brute-forcing the ledger is nearly impossible, gaining access to secret keys could give attackers control. China’s encryption law, passed in 2020, allows the government to demand access to stored data. This makes confiscation possible without physical seizure.
The Real Security Risks
The security risks, in this case, are confidentiality, integrity, and availability. Such risk is the highest level of risk in cyberspace and for cyber security. All security experts know that no system should be used if a person, or group of people, has not been properly authenticated. The question is how valuable will Bitcoin be before trust is questioned?
