How Can Investors Assess the Risk of a 51% Attack on a Smaller Cryptocurrency?
Investors can assess the risk of a 51% attack on a smaller cryptocurrency by looking at several factors. One is the network's hash rate.
A lower hash rate means that the network is more vulnerable to an attack. Another factor is the distribution of mining power.
If a single entity controls a large portion of the network's hash rate, it increases the risk of an attack. Investors should also look at the trading volume and liquidity of the cryptocurrency, as a successful attack could cause the price to crash.