Bitcoin Mining Firm Consistently Attaining Control of the Market

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Bitcoin mining firm GHash is reportedly consistently attaining over 51% of all of the hashing power of all Bitcoin miners. As a decentralized currency, Bitcoin depends on an open ledger called the "block chain" to track every transaction using the Bitcoin protocol. The integrity of the block chain is generally maintained because many different entities are competing to summarize the entire block chain as quickly as possible. When many entities agree on the state of the block chain, that agreed upon state becomes for all intents and purposes, fact. When a miner is able to consistently control 51% of the "votes" in the mining pool, it can theoretically control the state of the block chain. GHash has released a press release stating that it will not attempt to use its hashing power to manipulate the market, but the Bitcoin community remains cautious of how GHash will wield its market share in the coming weeks.

 

Topics:  Bitcoin Miner, Bitcoins, Block Chain, Popular

Published In: Finance & Banking Updates, Science, Computers & Technology Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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