Bitcoin fell as much as 11% on Thursday, hitting its lowest level in nearly three weeks, as the popular cryptocurrency was hit with a double whammy that jolted faith in its user base.
First, Janet Yellen, President Joe Biden's nominee for treasury secretary, suggested during her confirmation hearing on Tuesday that lawmakers "curtail" the use of Bitcoin because of its use in illicit activities.
And second, a debunked report from BitMEX Research on Wednesday suggested that a critical flaw called "double spend" had occurred in the Bitcoin blockchain.Early attempts to launch a digital cash system were ultimately halted by vulnerabilities that could have enabled double spending and undermined faith in the system.
BitMEX Research tweeted that "it appears as if a small double spend of around 0.00062063 BTC ($21) was detected."Ultimately, the double-spend event did not occur, according to Bitfinex CTO Paolo Ardoino. In an e-mail to Insider, Ardoino explained, "In fact, what happened is that two blocks were mined simultaneously. As a consequence, there was a chain reorganization, which did not result in double-spending."
Meanwhile, institutional investors continue to gain exposure to bitcoin. Filings with the Securities and Exchange Commission on Wednesday said BlackRock had enabled two of its mutual funds to invest in the cryptocurrency.
Read more: We spoke to the Winklevoss-backed crypto platform Gemini about Bitcoin, how to use stable coins, and why regulation won't kill the boom in digital currenciesCopyright © 2021. Times Internet Limited. All rights reserved.For reprint rights. Times Syndication Service.
Next