Yesterday, the price of Bitcoin plummeted even below $ 30,000 before recovering later today. And, although it is not the first time that the price of crypto has this type of movement, apparently the fall was caused by a big rumor.
A double spend could wipe out Bitcoin
For those who do not know the term, a double expense, as its name implies, is to spend the same batch of Bitcoin twice, while the crypto Blockchain is manipulated in order to cover up the action.
And, if you are 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.
Obviously, an event of such magnitude on the Bitcoin Blockchain would destroy the trust of crypto users. So, taking into account that crypto is based on trust, it would be the end.
Panic hit the crypto market when BitMEX Research published a report on Wednesday suggesting that a critical flaw, specifically a ‘double spend’, had occurred in the Bitcoin Blockchain.
The crypto firm wrote on Twitter 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 spending actually occurred on the Bitcoin Blockchain? Generally, misinformation spread and, with it, chaos.
Some media like CoinDesk rushed to clarify what happened. In particular, Jason Lau, COO of OKCoin exchange, explained to them that what actually happened was “a reorganization in the Blockchain”, something that is, in fact, quite common.
Also, BitMEX Research clarified that what appeared to be a “double spend” was actually a RBF, which consists of replacing an unconfirmed transaction with a new one with a higher fee.
MicroStrategy continues to demonstrate its crypto confidence
According to an SEC document, MicroStrategy has acquired another $ 10 million in the leading crypto. In this sense, the company now owns approximately 70,784 Bitcoins in total.
Also, according to the filing, this places the average purchase price of the company at $ 16,035 per Bitcoin.
Grayscale raises $ 1 billion worth of 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 has raised $ 1.2 billion since January 15.
In fact, Michael Sonnenshein, CEO of the crypto firm, said in Twitter that the amount amounted to $ 1,276,147,151.
This is how the crypto company continues to break records, it is worth remembering that, during the fourth quarter of 2020, its average was $ 217 million collected weekly.
In a few lines …
- Sberbank sent a request to the central bank of Russia to issue a digital crypto token, that is, a stablecoin for its customers.
- Janet Yellen, nominated for Secretary of the Treasury, said that crypto is being used for illicit financing.