Amidst the chaos caused by a faulty software update from global cybersecurity firm CrowdStrike, Bitcoin remains unaffected due to its decentralized nature and independence from centralized providers and infrastructure.
On Thursday night, CrowdStrike’s security tools triggered a series of computer outages, causing numerous systems relying on their services for Microsoft-based systems to go offline.
Major entities, including government offices, banks, and airlines, experienced disruptions as computer screens displayed the infamous blue screen of death.
Bitcoin Remains Unfazed
In an update on Friday, CrowdStrike stated that it was actively working with affected customers to address a “defect found in a single content update for Windows hosts.”
The company emphasized that Mac and Linux hosts were not impacted, and the issue was not a security incident or cyberattack.
CrowdStrike assured users that the problem had been identified, isolated, and a fix had been deployed.
All of CrowdStrike continues to work closely with impacted customers and partners to ensure that all systems are restored.
I’m sharing the letter I sent to CrowdStrike’s customers and partners. As this incident is resolved, you have my commitment to provide full transparency on…
— George Kurtz (@George_Kurtz) July 19, 2024
Bitcoin, however, remained unscathed due to its reliance on Linux-based frameworks rather than Microsoft software, according to Taras Kulyk, the CEO of SunnySide Digital, a wholesale distributor of hardware and services for data centers and digital mining infrastructure.
Kulyk highlighted the irony of global banks shutting down due to the server issue while Bitcoin continued to function seamlessly.
Referring to the Bitcoin hash rate chart, he emphasized that most, if not all, Bitcoin miners utilize Linux-based frameworks.
He humorously remarked, “Bitcoin keeps hashing, and I hate to use the term, but, ‘tick tock, next block.'”
The infrastructure on which blockchains rely determines their vulnerability to such server shutdowns, explained Kulyk.
Microsoft systems dependent on .NET frameworks are more susceptible, whereas Linux-based hardware and software systems offer greater immunity.
Kulyk emphasized the principles of strong privacy rights, decentralization, and empowerment of individuals against centralized authority as the driving factors behind the choice between Microsoft and Linux systems.
Bitcoin Miners Prefer Linux
He noted that Bitcoin miners, who often oppose the existing system and large-scale enterprise players, prefer the open code of Linux.
Ubuntu serves as the operating system for most miners who align with the ethos of the cypherpunks.
While CrowdStrike rolled back the faulty update, the repercussions of the error have been significant.
CrowdStrike (CRWD) stock experienced an 11.10% drop, according to Yahoo Finance.
In contrast, the blockchain industry as a whole appeared unaffected by the crash, with the cryptocurrency market up 4.6% for the day.
Bitcoin (BTC) is currently trading at $67,224, according to CoinGecko.
As reported, the number of Bitcoin wallet addresses holding BTC has been decreasing over the past month, according to data from onchain analytics firm Santiment.
While this may initially seem concerning, Santiment suggests that it could actually be good news for investors.
“When we see mass liquidations like this, the probability of a continued rebound only increases,” the firm wrote.
Meanwhile, there has also been a decline in the percentage of Bitcoin supply in profit, currently standing at 89.43% according to Glassnode data.
While this might appear discouraging, other metrics paint a more bullish picture.
In a recent post, CryptoQuant founder Ki Young Ju noted that over-the-counter (OTC) markets are dominating centralized exchange markets, indicating institutional accumulation.
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