- The misunderstanding regarding Bitcoin double-spend affected the price of Bitcoin
- The concern went trending in Google searches and became a headline of every news outlet
- Where the concern was soaring in the searches, the price of Bitcoin faced a heavy sell-off pressure
- The concern affecting several newbies is nothing more than a misunderstanding
On Thursday, it was observed that Bitcoin was undergoing a heavy sell-off pressure, and lost more than 11% of its value. Hunting for the reason behind the drop in the price level of the leading crypto token, it is found that because of a misunderstanding the token was facing such sell-off pressure. A so-called double-spend, where two transactions were made using the same token on the Bitcoin network, attracted the newbies. However, as the news started to get viral on social media, several experts flooded with explanations that it is accepted.
Double-spend of Bitcoin doesn’t look sinister
If we observe the double-spend issue, it is just experimentation or a software bug and looks like anything harmful. On the other hand, the coin designed by Satoshi Nakamoto is only created to be a virtual currency on a decentralized platform. The blockchain where Bitcoin is transacted is a spreadsheet logging the details of the transactions. However, to fulfil the transaction, a third party is required to verify the deal.
This kind of double spend only means that the blockchain has been manipulated to remove the network’s security claim. However, in an average case, the transactions are verified as many as six times. In double-spend cases, the transactions are verified only once and revoked after entering on the ledger.
“Bitcoin double-spend” spiked in Google searches
Following the data from the Google Trends, it is observed that Bitcoin double-spend has soaring been searched several by the populations. On Thursday, interest in the topic surged to 100, whereas mainly the United States users only searched for this many times. However, when the topic was trending in Google search, the leading crypto token price bounced by more than 15% to less than $30k. With the sell-off pressure on the flagship token, other cryptocurrencies also faced such sell-off pressure.
Experts explained the misunderstanding concept
Since the Bitcoin double-spend started to trend the experts in the cryptosphere began to explain about the situation. Experts tried their best to calm the users and understand that such situations occur on average every two weeks. According to the experts, the events are a normal part of the consensus algorithm. On the other hand, several experts also explained that the event was just experimental or a software bug.
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