Bitcoins Is the Currency of Choice

Bitcoin was welcomed at its seemingly exaggerated value at the end of last year. Since its founding in 2009, emerging digital currencies have already exceeded the share of skeptics as retailers around the world have regarded them as new payment methods for customers. Although it is known as an alternative to traditional currencies, in the economic field, some people question the feasibility of digital currencies that are regulated as speculative assets or are not increasingly used by investors I will.

Bitcoin has been preferred as a dark Internet currency since its inception. However, there are indications that it is losing its effect at this stage. Since the Bitcoin block chain is open to the public, it has been proven that anonymity is lower than I thought. Detailed block chain analysis of bit coin transactions can actually be used to break Tor anonymity. For the same reason, the substitutability of Bitcoin is also affected (Exchange does not accept BTC for specific address). There are three aspects of encryption currency transactions: sender's address, recipient's address, and send amount. In Bitcoin, all three are public and can be tracked by cross-reference. Therefore, the success of a private cryptographic currency should provide anonymity in all three aspects of a transaction.

Unreliable currencies such as Bitcoin have some obvious advantages in today's mainstream legal currency and it is an obvious choice for anyone if it achieves a similar level of efficiency must. However, Bitcoin does not have an important function of network effect. If there are few people using it for trading, its usefulness as a currency is limited and reduces the motivation to use it. There are still two different scenarios where you need to analyze Bitcoin to gain significant traction and become a major world currency. The devastating failure of the financial crisis and the stable macroeconomic environment in the coming decades