Monero (XMR) Network Under Imminent Attack?

A recent thread on Reddit has been making the Monero community curious.

It was reported by Hackrenoon’s Han Yoon that the Monero network is possibly showing signs of an imminent attack.

Monero miners are witnessing a strange phenomenon

It seems that while the cryptosphere and the whole blockchain world has been interested in all kinds of various other cryptos and the developments made by the companies behind them, Monero miners have been reportedly witnessing an “unusual phenomenon” that’s been unfolding in front of them writes Yoon.

XMR, a coin which was once extremely profitable to mine, has suffered like all PoW coins during the longest bearish trend ever.

But people who have been watching the network have noticed something really strange: while the hashrate is increasing, the profitability is decreasing.

Profitability down, hashrate going up

The same author notes that currently, Ethereum is still the most profitable for all miners.

“To put into perspective, an 8-GPU AMD RX580 mining rig at 6 cents per kW/h, Ethereum is profitable by around $2 a day. Monero, even with the correct undervolting settings, would post a loss of $0.50 a day,” Yoon notes.

The question that he poses is where the hashpower for Monero is coming from? It keeps rising when it should be reportedly falling.

Potential causes

Yoon provides a few potential catalysts that could trigger all this and you can see his assumptions in the original article.

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On Reddit, Yoon created controversy and Redditors are coming with their own assumptions about this.

For instance, someone believes that “FPGAs are a good candidate for the increasing hashrate, but the question still remains who is behind it. ‘It just doesn’t make sense for anyone to be mining Monero right now, and it definitely makes it more perplexing that hashrate is rising instead of falling.’ You’re assuming the motives of all actors. Monero’s privacy features make it desirable. So, how does one acquire large amounts of Monero privately? It can’t buy them OTC or on an exchange. Mining or theft are the best options. A state actor wishing to circumvent sanctions would be a good candidate. As outlandish as it sounds, there is a precedent. North Korea once mined Bitcoin.”

We recommend that you head over to Reddit and follow the thread there.

Eduard Watson Author

An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.

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