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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.

How Does the Concept of “Mining Pools” Affect the Distribution of the Total Hash Rate?
How Does a “Hash Rate” in Cryptocurrency Compare to a “Tick Rate” in Traditional Options Trading?
What Is the Impact of Rising Energy Costs on the Global Distribution of Mining Hash Rate?
How Does the Derivative Market for Hash Rate Futures Potentially Affect the Cost of Attack?