"Coin Metrics Analysts Reveal: A 51% Attack on Bitcoin Would Cost $20 Billion, Ethereum Even Higher at $34 Billion"

In a recent analysis by Coin Metrics, experts have dissected the financial implications of executing a so-called 51% attack on the networks of Bitcoin and Ethereum, unveiling staggering costs that would run into the tens of billions of dollars. Such an attack, a nefarious scheme aimed at gaining control over more than half of the network's stake or computing power, could potentially allow hackers to rewrite transaction histories or prevent the completion of transactions, block validator rewards, and facilitate double-spending of tokens.

For Bitcoin, attackers would need to amass a hash rate supported by an estimated 7 million ASIC miners, a feat that analysts argue would cost around $20 billion. This figure takes into account the purchasing of the necessary equipment to achieve such a daunting hash rate. However, the report highlights a significant barrier to this hypothetical scenario: the current market lacks the volume of mining setups required for such an endeavor. Even if one were to consider underground production of Bitmain AntMiner S9 equivalents, the time and financial costs would exceed the aforementioned $20 billion, according to the experts.

Turning to Ethereum, the situation appears even more costly. The report dismisses fears of a theoretical attack involving 34% of staked assets by validators as unfounded. Analysts at Coin Metrics argue that such an operation would be prohibitively expensive and time-consuming. "Based on our estimates, an attack on Ethereum would take six months due to the exit limit, which doesn't allow it to be executed immediately," stated Lucas Nuzzi, a Coin Metrics expert. Additionally, the operation would necessitate managing upwards of 200 nodes simultaneously, greatly complicating the coordination efforts required for such an attack.

The financial outlay for launching an attack on Ethereum is projected to exceed $34 billion, further complicating the feasibility of such malicious endeavors. The analysis concludes that, given the current market capitalization of these assets and the potential operational expenses involved, even state-level actors would find the execution of such attacks beyond their reach.

This revelation comes in the wake of a report by Hacken, which noted that the damage from hacks and scams amounted to $1.9 billion in 2023, underscoring the persistent threats within the cryptocurrency space. Yet, the findings by Coin Metrics suggest that the sheer scale and cost associated with mounting 51% attacks on major networks like Bitcoin and Ethereum serve as a formidable deterrent, reinforcing the security framework that underpins these digital assets.