Bitcoin’s biggest problem is still the threat of a 51% attack, according to Dr Dirk Haubrich, head of consumer protection and financial innovation at the European Banking Authority (EBA).
He said his main concern about the widespread adoption of bitcoin is the risk of a 51% attack, where a single entity contributes the majority of the network’s mining hashrate and, thus, gains full control of the network and can manipulate the blockchain.
Haubrich made these comments on Friday at an event titled Controlling Cryptocurrencies at the University of Birmingham in the UK.
He said he had spoken to numerous members of the virtual currency world two years ago and at the time, he was assured majority power would never occur. After it did, people assured him it didn’t matter, as the 51% would not abuse the system.
“As a financial regulator, I don’t believe it. I’ve seen so much stuff happen from the financial institutions that created the financial crisis – and that is partly what brought about virtual currencies in the first place – so I don’t believe in those promises any more,” Haubrich said.
Haubrich feels the EBA could probably find