 Guys, let's get the facts straight. There has been a bunch of fear and uncertainty out in the crypto markets today about double spending on the blockchain. This was reported in accurately and is part of the reason why today Bitcoin has been pushed down as far as the price action. Back in 2008, when Satoshi made Bitcoin, basically the main issue that he was trying to fix was double spending in currencies. And that is one of the main focuses of Bitcoin. So of course, if this was actually a real issue, Bitcoin would go to zero, but it's not. Let's get the facts straight today. Hey, what's up? Jay here and welcome to Bitcoin Daily bringing you guys the best tips, tutorials and ideas to help you guys become profitable and successful traders. The goal of this channel is to empower you with the best resources and knowledge to take you to the next level. So make sure to subscribe, like and share this video. Also turn on your post notifications so that you know every day once we post up those videos. So today we're covering something that has been circulating for the last few hours since this morning and that thing is double spending on the blockchain. There were multiple reports about something going on on the blockchain that then got turned into some sort of article basically saying that Bitcoin was double spending on the blockchain that someone did it. So of course that got spread all throughout the media and basically it caused this whole deal that we're going with today. So we're going to go ahead and get the facts straight on this story from all the uninformed people going around throwing these words out like if they know what they're talking about when they don't. So I basically all started out with this tweet from BitMEX Research. They said that there was a stale Bitcoin block today at height 666833. Slush pull has beaten F2 pull in a race. It appears as if a small double spend of around 0.00062063 BTC which is $21 was detected. So here you guys can see the details on this. It tells you exactly what happened at what time and the you know everything that you need to know on this and the amount as well. You can see as they tweeted again here about the transaction about what was going on basically updating us on what they had found. So this tweet just kind of took off sort of say even after they debunked it you can see here that then they posted for anyone interested here are the details we have for the transactions in question and then they posted about the winning transaction and the losing transaction. And if you guys really want to know everything that happened in those transactions you could go ahead and click this and have fun looking at this stuff right here. But then when that happened articles started going up and this is one of the articles that went up by coin telegraph that people weren't too happy about. So it said Bitcoin double spend spotted in the wild. Bitmex research has identified what it believes to be a double spent Bitcoin transaction worth $21 and the article goes on to say Bitmex research has identified the same thing and it doesn't appear to be an instance of that popular replace buy fee wallet hack. This is kind of what really started spreading this fud and then it just kind of went wild. Right. If you just kind of do a quick Google search and type in Bitcoin double spend you'll see that Bloomberg is reporting on it markets insiders reporting on it Bloomberg reporting it on it again. So let's go ahead and take a look at what exactly is double spend. That's probably what you're asking yourself right now. Right. Bitcoin has been able to survive and thrive because it solves the double spending problem. So what is double spending double spending means basically spending the same money twice. So let's go ahead and take it a look at this example to break it down for you guys. So let's go ahead and look over an example on what double spending is. So let's say you go to Starbucks order cappuccino worth ten dollars you pay in cash now that the ten dollars in cash is in the vault of Starbucks by all means you simply cannot spend the same ten dollars somewhere else to make another purchase unless of course you steal it as you paid with your ten dollar bill the service provider at Starbucks instantly confirmed that you have paid and you received your coffee in exchange for the money but Bitcoin is digital money not physical cash hence Bitcoin transactions have a possibility of being copied and rebroadcasted. This opens up the possibility that the same Bitcoin could be spent twice by its owner how in the Starbucks example you paid cash so the payment was confirmed and verified instantly by another human but with digital currencies like Bitcoin if this verification mechanism is missing it can lead to double spending. Anyone can just copy that digital money and pay somewhere else and here is where the unique invention lies. Bitcoin although being a digital currency solves the problem of being copied and getting spent twice how does Bitcoin handle the double spending problem it's pretty simple confirmations. So Bitcoin manages the double spending problem by implementing a confirmation mechanism and maintaining a universal ledger called the blockchain similar to traditional cash monetary system. So the ledger which is a blockchain is similar to the traditional cash monetary system right. Bitcoin's blockchain maintains a chronologically ordered time-stamped transaction ledger from the very start of its operation in 2009 every 10 minutes a block or group of transactions is added to the ledger and all the nodes on the Bitcoin network keep a copy of this global ledger which is the blockchain. So let's look at how the Bitcoin network prevents double spending. Let's suppose you have one Bitcoin which you try to spend twice you made the one Bitcoin transaction to a merchant now you again sign and send the same one Bitcoin on another Bitcoin address try and trick the merchant. Both the transactions go into the unconfirmed pull of transactions but only your first transactions got confirmations and was verified by miners in the next block. Your second transaction could not get enough confirmations because the miners judged it as invalid so it was pulled from the network but wait what if both the transaction are taken simultaneously by the miners when miners pull the transaction simultaneously from the pull then whichever transaction gets the maximum number of confirmations from the network will be included in the blockchain and the other will be discarded you might say that this is unfair for the merchant as the transaction might fail in getting confirmations yeah this can happen that's why it's recommended for merchants to wait a minimum of six confirmations here six confirmations simply mean that after a transaction was added to the blockchain six more blocks containing several other transactions were added after it confirmations are nothing but more blocks containing more transactions being added to the blockchain each transaction and blocks are mathematically related to the previous one all these confirmations and transactions are time time stamped on the blockchain making them irreversible and impossible to tamper with so if a merchant receives his or her minimum number of confirmations he she can be positive it was not a double spend by the sender why can the merchant be assured because to be able to double spend that coin the sender has to go back and reverse all transactions in the six blocks that have been added after their transaction which is computationally impossible so that's the basic idea of how double spending works and how it's prevented by bitcoin if you guys want to read this full article you can just go ahead and look this up on coin sutra what is double spending and how does bitcoin handle it so this article continues their fud this by saying one hour later bitmex research attributed the orphaned block to an rbf transaction which is where an unconfirmed transaction is replaced with a new transfer paying a higher fee however fork monitor has since updated its advice to say no rbf bumps have been detected and then of course you know they highlighted this message here that says so it appears an actual double spend has occurred on btc not an rbf which is a replaced by fee but an actual double spend a mere 22 but this could have been 22 million just all these people are just uneducated and you know putting out things that are not that are not real right so of course people started going crazy on twitter all the fud started spreading people started selling just crazy and especially people that that are not educated about bitcoin and how it works double spending is not possible so as you guys can see this bitmex tweet and report was taken completely out of context and had and is definitely fake news as far as all these articles and all these people all these people that are against bitcoin are using this as basically a steam as fire to to reverse the price of bitcoin bitmex research uh tweeted today as for yesterday's possible bitcoin double spend which was resolved after one block we have summarized the transaction in the below image so that you can decide for yourselves what may have happened and they posted this image here which basically breaks down the entire transaction and exactly what happened so you see that the winning chain was that and there was only one transaction the other transaction was on the losing chain so therefore it was disregarded now there's a very lengthy explanation here by andres i'm not even gonna try to say his last name about the double spend broke bitcoin fud that was circulated by an irresponsible publication talking to you cointelegraph you can go on to read all these tweets there's actually a lot of tweets here but as you guys can see he's just basically breaking down exactly what happened and debunking it right so in this set of tweets um andres talks about he breaks down exactly how the blockchain works when dealing with this type of issue and how it confirms and how there's a winning block and a losing block right so you guys can feel free to read all of this we're gonna highlight some of the tweets here so basically saying that there was a reorganization in the bitcoin blockchain and that it's a common occurrence that part that is part of bitcoin's normal operation then the issue was that two blocks were mined almost simultaneously competing for the same height meaning that they had the same parent block and were trying to extend the chain of the same block but only one can ever succeed in the long run eventually within an average of 10 minutes another block is mined this new block has as its parent one of the two competing blocks which one whichever one the miner saw first and assumed to be the winner and that's how the block extends the chain and resolves the issue so the losing block basically is orphaned from the other chain because it's discarded he goes on to say that this is all normal a one block reorganization happens every couple of weeks on average as a consequence of a decentralized proof of work a two block reorganization happens less often maybe a few times a year any three block is extremely rare this is all described in satoshi's white paper on page eight in fact it's the only math equation in the paper and it describes the declining probability of a reorganization showing why six confirmations though arbitrarily chosen is a good basis to consider a transaction finalized and then he goes ahead and shows page eight here an example of how exactly that works so he goes on to say that nothing weird or outside the consensus algorithm happened bitcoin continues to work exactly as it should the only thing that happened is bad journalism if it can be even called that in a bubbly market a rumor can circle the globe before it is debunked and then he says consider it debunked so there you have it guys this is debunked so anyone that's been spreading this i've seen this in my instagram comments people writing about the double spend come on guys do your research before you go on talking about things you don't understand and things you don't know about i'm mostly a trader right i just trade trading is what i focus on that's basically all i do so you don't see me going going around and you know talking a bunch about other stuff that i don't know about i did not have this understanding on exactly how double spending worked on exactly how the blockchain worked so i had to go and do some research to really understand and get a grasp and to make this video for you guys you know what i mean i don't consider myself a blockchain expert i'm a trader i'm a trader first and then everything else after that right so talking about trading let's go ahead and take a quick look at the chart as you guys can see we had this massive sell off here today but you can also see that we're slowly climbing back up and i believe as people get more and more word about the fake news that we will you know we should hot back up so right now what happened was that this news pushed us beyond this the Fibonacci level that was holding us which was at 35 000 right that's where it's been holding us here and because of this news it gave enough downside momentum to push right through it and not only push through that one but push through the next one which was around that 32.7.8 area right um and we almost went all the way down to that 61.8 percent Fibonacci level which is the golden ratio thankfully we did bounce and uh we're currently trending back upwards but this has definitely you know kind of thrown off the momentum a little bit as far as the price movement goes as far as our bounce back possibility goes so now we will have to fight a little bit harder to get back up there now the good thing is that on the weekly chart our rsi is almost back out of overbought territory which uh we kind of need and it's going to take a little bit more consolidation to get that out of there right so um this is currently the channel that we're watching right now as you guys can see it's been respecting these lines so um these this is currently what we're going to be watching we'll touch on it more tomorrow i'm just wanted to give you guys a quick update and mostly cover the fud fear and uncertainty fear doubt and uncertainty that was going around be assured guys there was no double spending guys the results of this fud spreading around and people that don't know about it and or understand it it might cause them to sell and because this current move we could test that 61.8 percent Fibonacci level again and possibly even lower but for right now we're good unless we break that 30 000 mark we should be fine hopefully you guys found value in this content in this video i tried to bring you guys i did the research and tried to bring you guys all the facts that i could find to make sure to throw out all that fud right guys make sure to subscribe and like if you enjoyed this video i will be back with a new video tomorrow for friday as always guys peace and love