NexTech Panic Sold its Bitcoin on Dip Because of Double Spend FUD That Never Happened
Bitcoin flowed from weak hands, NexTech, which moved back into cash, to strong hands, MicroStrategy, which bought 314 BTC for $10 million.
- It didn’t even take one month for NexTech AR Solutions to panic sell their Bitcoin. The company couldn’t even weather the first dip of the bull season.
- This week showed how Bitcoin flowed from the weak hands, NexTech, to strong hands, MicroStrategy, which bought 314 BTC for $10 million.
On Friday, the company announced that it had sold its Bitcoin ownership of approximately 130.187 Bitcoins with $200,000 in profit. NexTech first bought these BTC in late December and said they “may add more in 2021.”
“The average retail that stayed during the bear market is probably more sophisticated and stronger handed than the average institution that got in Q3/Q4 2020,” noted analyst Qiao Wang.
What’s even more surprising is the reason for this sale, double-spend, never even happened. NexTech CEO Evan Gappelberg said,
“This sale reflects our awareness that something potentially has changed with Bitcoin, which is seen as the digital version of gold. The news that has emerged is that a critical flaw called a ‘double spend’ may have occurred, which if true allows someone to spend the same Bitcoin twice, undermining faith in the system.”
He continued: “If the system is built on scarcity and faith in the system, then a ‘double spend’ would eliminate both -essentially destroying the store of value it was meant to be.” And this made him move back into cash.
The double-spending FUD was the latest one to permeate the cryptocurrency market, which propelled some people to sell their holdings.
As Andreas Antonopoulos explained in detail, this chain re-organization that happened Thursday is a “common occurrence that is part of Bitcoin’s normal operation.”
Something good did come out of this as Google searches for “Bitcoin double-spend” spiked as people took time to understand it. It can be expected that they might refrain from falling for this FUD the next time, and instead of panic selling their BTC, buy the dips.