Bitcoin at risk of network attack, say researchers
The [theoretical] Cornell attack involves one large mining group that does not say when it has been rewarded with new Bitcoins. This "selfish" mining group then begins working on the cryptographic puzzle that will eventually release the next reward.
This gives it an advantage because every other mining group will still be working on a puzzle that has already been solved. By leveraging this advantage and being careful about when they release information about new Bitcoins they have mined, the group could gradually take control of the entire mining system.
More FUD. It doesn't matter. One only need look at the mining pools to understand why. The most important is BTC Guild, and the fellow that owns/runs that is what some would call "religiously driven". He's the #1 person to watch if you're remotely worried about this.
-- For those that want the short version, the paper outlines a method where 25% of the network could possibly pull off a 51% attack.
But FUD doesn't matter anymore. Chinese buying has gone into a frenzy and is now in charge of driving this bus.
Short term predictions:
Steep slope up to CNY 1,600 then run up to CNY 1,800 with small wall. Another run up past 1,900 until a small wall at 2,000 slows things.
The run up to 2,000 could be stopped by panic selling, but that is unlikely. The 3 major markets are closely linked for prices with the Chinese being the driving force. Fundamentals are solid with large wallets being static for prolonged periods and solid buying. Mostly green bars peppered with a bit of red (profit taking).
Media attention is only creating more interest with FUD being discarded. However, western media is becoming less relevant and the market shifts to China with Chinese sentiment being most important.
If BTC breaks the CNY 2,000 barrier, we're either in for panic buying or panic selling. Given the strong upward momentum, I'm hopeful for panic buying, though it's a bit far off to tell. We could see a correction.
Since I started writing this, BTC rose about 0.76% on solid volume.
for depth to have a look. That'll explain or clarify what I have above.
Also, see here: http://bitcoinwisdom...kets/btcchina/btccny