The rumor of a possible „double spending“ on the Bitcoin Blockchain caused panic in the crypto market and collapsed its price. we tell you about it!
Yesterday the price of Bitcoin plummeted even below USD 30,000 before recovering during today’s trading. And while it’s not the first time the crypto price has had this kind of move, apparently the drop was caused by a big rumor.
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Double spending could kill Bitcoin
For those who don’t know the term, a double spend, as the name implies, is spending the same batch of Bitcoin Up twice while being manipulated the crypto’s Blockchain in order to cover up the action.
And, if you’re still not quite sure you understand the term, a perfect example of a double spend on the Blockchain is when a person leaves a check as a form of payment and subsequently withdraws the funds from the account before the money is cashed.
Clearly, such a major event on the Bitcoin Blockchain would destroy the trust of crypto users. So, considering that crypto is sustained by trust, it would be the end of it.
Panic hit the crypto market when on Wednesday BitMEX Research published a report where it suggested that a critical flaw, specifically a „double spend“ flaw, had occurred in the Bitcoin Blockchain.
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The crypto firm tweeted about the possibility of a small double spend of around 0.00062063 BTC ($21).
Immediately the news alarmed the entire crypto market and the investigation began, had a double spend really occurred on the Bitcoin Blockchain? In general, misinformation spread and, with it, chaos.
Some media outlets such as CoinDesk rushed to clarify what had happened. In particular, Jason Lau, COO of OKCoin exchange, explained to them that, in reality, what happened was „a reorganization in the Blockchain“, something that, in fact, is quite common.
Likewise, BitMEX Research clarified that what appeared to be a „double spend“ was actually an RBF, which consists of replacing an unconfirmed transaction with a new one at a higher rate.
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MicroStrategy continues to demonstrate its crypto confidence
According to an SEC filing, MicroStrategy has acquired another USD 10 million in the crypto leader. In this regard, the company now holds approximately 70,784 Bitcoins in total.
Also, according to the filing, this puts the company’s average purchase price at $16,035 per Bitcoin.
Crypto market capitalization pulls back sharply as Bitcoin falls
Grayscale picks up USD 1 billion in Bitcoin in a single week
In case you’re still not impressed by Grayscale’s capabilities and pivotal role in the crypto market, let me tell you that the company’s Bitcoin Trust raised $1.2 billion since January 15.
In fact, Michael Sonnenshein, CEO of the crypto firm, said on Twitter that the amount amounted to $1,276,147,151.
This is how the crypto firm continues to break records, it is worth remembering that, during the fourth quarter of 2020, its average was $ 217 million raised weekly.
Markets in panic over Bitcoin’s fall
In a nutshell…
Sberbank sent a request to Russia’s central bank to issue a digital crypto token, i.e. a Stablecoin for its customers.
Janet Yellen, nominee for Treasury Secretary, said cryptos are being used for illicit financing.