Bitcoin: Double Spending and Government Conflict

Future of bitcoin

 Given the prominence of Bitcoin, one could argue that it is likely deemed as being the most “popular” and widely covered cryptocurrency on the market. Assuming that the market follows that same interest financially, it is recognizable that the garnered attention and recognition for Bitcoin has simultaneously resulted in significant growth in value and volume transacted throughout time. Unfortunately, the prominence of Bitcoin often ignores the varying issues that plague the existence of such large transactions and investments. With a recent rejuvenation of double spending, it is important for investors to recognize the risk that they take by allowing for such a dominant coin. Additional news reports have boded negatively for the cryptocurrency giant, resulting in a recent market shift downward in recent days. 

Prior to discussing the validity of Bitcoin versus other coins of preference, it is imperative that the reader understand the concept of double spending and the way in which users are pulling scams on each other. Double spending, put simply, occurs when a user manages to spend the same bitcoin twice, resulting in an internal flaw on the blockchain framework – such a conflict could result in investor concerns and consequently destabilize the prominence and value of the currency. While the problem of double spending had been addressed in early 2009 by Satoshi Nakamoto, many still fear the possibility for it to occur; thus, when a recent news article was published regarding an apparent double-spend, some investors grew concerned. Later coverage disproved the assertion and found that a double spend incident had not, in fact, occurred. 

While a temporary drop in value for Bitcoin is expected from such news coverage, investors should be more concerned about the recent Presidential election and consequential ideology shift from people in power. With Joe Biden’s inauguration coming to a conclusion on the 20th, his treasury secretary made some questionable and concerning statements regarding the use of Bitcoin and the continuous investment into such digital assets. The sentiment presented by Janet Yellen is not the first case in which a high-ranking government official disproved of the increasing attention and attraction revolving around the world of cryptocurrency. Unfortunately for investors, this sentiment and statement bodes negatively for the future of the coin – with investment firms moving towards cryptocurrency and Bitcoin, this statement creates a question of future interest and investment. Are these large funds likely to continue to pursue investment into these coins, given the viewpoint of the government? Likely not. 

As the world of digital assets and alternative investments continues to develop, a large shift has recently moved towards Bitcoin, amongst other large coins. Unfortunately, as is what happens with most investments, mass sentiment does not always align and consequently results in temporary negative trends surrounding the fiscal welfare of the asset. For Bitcoin, negative government sentiment serves as arguably the largest hurdle for the entire realm of cryptocurrency – if the American government continues to oppose the digital asset, it will be difficult for the coin to gain continued traction.

Magic21

I am a computer engineer more interested on blockchain technology and bitcoin.

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