Bitcoin Volume Drop Could Be Linked With End of VeriBlock Testnet
Bitcoin [BTC], the world’s largest cryptocurrency has not had a tremendous start to the beginning of March, as indicated by the transaction numbers and the volatile market volume.
The latest report from Coin Metrics shows a stark decline in the Bitcoin transaction rate as the numbers fell from a high of 353,537 transactions to the current 239,345 transactions. The downtrend is the biggest slip of transaction rate over the past three months as the disparity between the top and the bottom came up to almost 114,000 transactions.
Many users speculated that the drop could be linked to the end of the Veriblock testnet that occurred on March 4. Reports also showed that the testnet process accounted for almost 20%-30% of occurring Bitcoin transactions. Veriblock’s testnet created a lot of ruckus in the cryptocurrency space, with many users complaining about repeated spams and other problems. Veriblock’s website had then said:
“As a result, the reinforced security provided by PoP will encourage further adoption of these alternative blockchains. The transition of transactions from Bitcoin to alternative blockchains will also facilitate Bitcoin scaling, while continuing to drive value back to Bitcoin miners.”
Veriblock’s website shows that the organization aims to provide double-spend attack prevention, protection against sustained 51% attacks, and early attack detection against frauds and thefts.
Users in the cryptocurrency sphere have also pointed to some other reasons for the decline, one standout option being the power and communications outage in Venezuela. Reports from within the country showed that the BTC transaction in Venezuela plunged from 370,000 to 240,000. The reason why the drop in Venezuela made news was that the country’s BTC transactions on LocalBitcoin were more than that of Europe and the United Kingdom.
Bitcoin and its associated technologies had made news earlier when Bitcoin millionaire Erik Finman said that the coin’s Lightning Network will demolish the future. He elucidated that the LN was effectively transforming Bitcoin into an international payment network like Mastercard and Visa. He even stated that ‘Bitcoin is dead’ and that the LN will be the main cause for it.
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