Major cryptocurrency glitch has traders thinking they’re billionaires


Unfortunately, you’re not a crypto millionaire. Not yet, anyway (Metro.co.uk)

Volatility is a known factor of engaging with cryptocurrencies like Bitcoin.

The completely digital, unregulated currencies can ebb and flow based on all kinds of different stimulus.

But, as thousands of everyday traders found out this week, they can also be subject to glitches – just like any other piece of computer code.

Coinbase and Coinmarketcap, two of the world’s biggest cryptocurrency exchange platforms went haywire on Wednesday.

Astronomical gains were being shown for the most popular crypto tokens like Bitcoin, Ethereum and Cardano.

It was the equivalent of logging into your bank account and finding out you’ve won the lottery.

‘My jaw hit the floor and I thought my day in crypto had finally come,’ retail trader Jim Eaton told Metro.co.uk.

‘In about five seconds flat I’d bought an island and a Formula One team but then quickly realised it had to be a glitch as there probably wasn’t enough money in the world to pay all that out.

‘Still, all very exciting though and this is I guess why you invest in metaverse VR coins — it’s a thrill ride.’

Plenty of other traders seemed to enjoy their temporary gains – posting screenshots of the glitch on Twitter.

And, as you’d expect, the memes started flying…

Coinmarketcap referred to the glitch as an ‘irregularity’ and said it had fixed the issue after a couple of hours, sending everyone back down to Earth.

In a statement, the company said the glitch wasn’t caused by hackers: ‘We haven’t found any evidence yet to suggest that today’s glitch was caused by an external party.’

Just to be sure, the company said it rebooted its servers.

But it was still able to have a joke about the whole thing.

Coinbase – the biggest crypto exchange in the US – also tweeted to say it has resolved the problem.

The company said that despite the display prices, actual trading hadn’t been impacted.

‘The display issue has been resolved. Non-tradable assets on Coinbase.com are no longer appearing inflated, and assets on Coinbase Wallet should reflect the correct market value. Again, this did not impact trading,’ it said.



Bitcoin basics: what you need to know about the cryptocurrency

Bitcoin is a completely digital peer-to-peer currency (Credits: Getty Images)

Bitcoin is a type of cryptocurrency, which is a virtual or digital currency – like an online version of cash.

It works without a central bank or any formal regulation and is usually exchanged from person-to-person when it is sold or exchanged.

Way back in 2008, someone called Satoshi Nakamoto published a nine-page white paper detailing a vision for Bitcoin — described as a ‘peer-to-peer electronic cash system’ that would function outside the reach of governments.

A few months later, Nakamoto released software that allowed users to ‘mine’ for the cryptocurrency.

Essentially, mining involves a computationally-intensive process to create new Bitcoins. The more Bitcoins are mined, the harder the process becomes – requiring more computer power which gives Bitcoin its environmentally-negative reputation.

There are only a finite amount of Bitcoins that can ever be produced and circulated which gives it its scarcity and, in theory, value.

People can track their ownership of Bitcoin by using a cryptocurrency wallet, which is a digital way to exchange payments.

It is easy to track as details are stored in a ledger called blockchain, which is publicly accessible and it includes all confirmed transactions.

The value of the cryptocurrency fluctuates all the time in a similar way to more conventional currencies.

 


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