Thursday, June 17

USA’s largest pension fund managed to increase its Bitcoin mining shares 7 times

It turned out that CalPERS, the largest public pension fund in the USA, increased the number of shares in the Bitcoin mining company Riot Blockchain (RIOT) by 7 times in the last quarter of 2020.

While CalPERS, which manages the funds of public workers, retirees, and their families, has approximately $ 441 billion in assets, the company has increased the number of shares in the Bitcoin mining company with the increase in the Bitcoin price.

As reported by CoinDesk, according to official documents announced on Tuesday; The number of RIOT shares held by CalPERS as of the third quarter of 2020 was 16907 and the value of the shares was 49 thousand dollars in total. After the last purchase, the number of shares was 113 thousand 34 and the total value exceeded 1.9 million dollars.

The Sacramento-based fund company first bought Riot Blockchain shares in the 2017 bull run, and has always held nearly 17,000 shares since then. This number generally did not change.

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The value of RIOT’s shares, which has grown its capacity with the mining devices it has recently purchased, saw an increase of 541 percent in the 4th quarter of 2020. This rate was 174 percent in Bitcoin.

CalPERS executives had actually well anticipated the direction the world was heading, and during a public meeting in 2016, they stated that they would consider blockchain technologies as a future investment opportunity.

What is double spend, how are you protected from double spending?

First of all, double spending means spending the same coin multiple times. To give an example from real life, you entered a coffee shop and paid with 10 TL in cash in your pocket. 10 TL entered the cash register of the shop. Now imagine you buy a cookie for the same 10 TL. This is the blockchain equivalent of double spending. Although this scenario is not possible in real life unless you steal the money in the safe, it is possible in cryptocurrencies.

It is a good protection method against double-spend attacks personally not to accept transactions that have not yet been approved on the network. So if you are selling cars or something with Bitcoin, wait for at least 3 block approvals for a Bitcoin transfer. Some see another 6 block confirmation guaranteed. The reason exchanges wait for 1 block or more block confirmation to account for Bitcoin transfers is to be protected from the double-spending attack.

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