BTC bug: could it have been the end of Bitcoin?

BTC bug: could it have been the end of Bitcoin?

The bug found in Bitcoin Core client is even worse than everyone thought. As it came out, in addition to the possibility to crash all nodes, anyone could have mined an infinite amount of Bitcoins, devaluating the biggest cryptocurrency.

Could it have been the end of Bitcoin, if someone would have found this exploit earlier and used it? Let’s take a deeper look together.

What were the possible consequences of using this bug?

  1. Any miner could have crashed 90% of all nodes by generating a bad block that would be incompatible with the current software.
  2. Any miner could have generated additional supply of Bitcoins, so the total supply of BTC would have been bigger than 21 million.  

First of all, everyone who knows anything about crypto, is 100% sure that it’s impossible to create more than 21 million of Bitcoins in any case, except for 51% attack, which is highly improbable, given that the current hashrate of the network is over 50 million TH/s. It gives a certain confidence in Bitcoin's value to all crypto investors. What happens, if this confidence fades? Of course, a few thousands of new Bitcoins wouldn't cause a tremendous inflation, but the damage done to the crypto space would be beyond our imagination. The limited supply is one of Bitcoin's fundamental characteristics and one of its selling points. Scarcity plays a big part in this, as everyone who thinks that Bitcoin will become a global currency, knows that there isn’t enough BTC for everyone. There are more millionaires in the world than available Bitcoins, so every millionaire can’t get even 1 Bitcoin for himself. That’s the rhetoric of Bitcoin supporters. So creating even 1,000 more Bitcoins would shake the confidence of retail investors and, more importantly, of institutional investors. Why? Because everyone would understand then that their money depends on a few lines of code. Thus it’s crucial that Bitcoin would remain as stable as possible.

What could have happened if the exploit was executed? It could have created more Bitcoins, the price would have dropped tremendously, it would have required a hard fork to mitigate the damage, but it would have been too late. It wouldn’t have given BTC any extra points in the eyes of SEC, and all of us could have said 'bye-bye' to the possibility of ETF approval for a very long time. Also, it would have required upgrading all institutional services that prepare the framework for integrating BTC in global institutional trade. Maybe some of them could have even canceled their plans to build reliable platforms for the unreliable cryptocurrency. It can be compared with the DAO hack, only with a good outcome.


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Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in?

Bitcoin’s price action over the past year and a half has been quite the rollercoaster, with many investors incurring nearly instant wealth in late-2017, followed by tremendous losses for those who continued to hold their Bitcoin or other crypto investments. Despite this, those who held and are still holding are doing so either because of a fundamental belief in the technology, or at the very least a belief that the markets will eventually surge back to, or above, their previously established all-time-highs. That being said, recent comments from a prominent analyst about the potential Bitcoin’s price has to surge significantly higher will certainly be reassuring for embattled crypto investors who have been discouraged by the recent market conditions. Bitcoin (BTC) Drops to $4,000 as Support Level is at Risk of Being Broken At the time of writing, Bitcoin is trading down over 1% at its current price of $4,015, just a hair above its recently established support level at $4,000. Yesterday, Josh Rager, a popular cryptocurrency trader on Twitter, explained that the lack of buying pressure above $4,000 is likely to lead BTC’s price to $3,500, which may be reached soon if the crypto’s bulls are unable to keep Bitcoin’s price above $4,000. “$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s,” he explained. $BTC Weekly Chart Gandalf is holding $BTC below the mid $4,200 level Bitcoin shall not pass the current resistance So my target for the next drop has an aim at previous support near mid $3,500s — Josh Rager (@Josh_Rager) March 20, 2019 Naeem Aslam, the chief markets analyst at Think Markets U.K., recently spoke about the importance of the $4,000 level, noting that it will set the trend for which direction the markets head next. “Questions are being asked constantly when it comes to Bitcoin’s battle with the $4000 mark. The result of this battle sets the tone for a bullish or bearish trend,” he explained, further noting that this price level has become a “matter of death or life for crypto traders.” Could Bitcoin Surge to $400,000 Next? Although Bitcoin’s instability around its current price levels does seem to be significant in the short term, in the long term it may be very insignificant, as Aslam believes that BTC could eventually surge as high as $400k. “I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise. This is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run,” he bullishly explained. Keeping that in mind, for traders who are waiting to buy the bottom, the risk / reward ratio simply doesn’t make sense. Ryan Selkis, a popular figure within the crypto industry, spoke about the absurdity of trying to purchase a bottom when there is such a massive potential upside for BTC in a recent tweet. “I’d be extremely surprised if the bottom wasn’t in for this $BTC bear market. If you’ve been on the sidelines, what are you waiting for if not now? If you’re a long-term bull, the 5 year EV is 25-50x, and you’re going to wait to time an entry that’s 20% more attractive?” He noted. I'd be extremely surprised if the bottom wasn't in for this $BTC bear market. If you've been on the sidelines, what are you waiting for if not now? If you're a long-term bull, the 5 year EV is 25-50x, and you're going to wait to time an entry that's 20% more attractive? — Ryan Selkis (@twobitidiot) March 21, 2019 As the market’s price action continues to unfold, traders and investors should keep in mind the massive potential Bitcoin and the entire markets have to surge significantly higher in the next few years. Featured image from Shutterstock. Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in? was last modified: March 21st, 2019 by Cole PetersenThe post Prominent Analyst: Bitcoin (BTC) is Likely to Surge to 400k, Does This Mean the Bottom is in? appeared first on NewsBTC.

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