Are Non-Virgin Bitcoins On The Brink Of Extinction?

Are Non-Virgin Bitcoins On The Brink Of Extinction?

Apparently, there are two types of Bitcoin in existence; virgin Bitcoins and non-virgin Bitcoins. Virgin Bitcoins have an immaculate transaction history. Non-virgin Bitcoins, on the other hand, have a tarnished past- they are likely to have been used in facilitating shady transactions in the dark web, or might have been acquired through theft, hacking and illicit dealings.

In terms of fiat currencies, virgin Bitcoin would be freshly minted notes whereas non-virgin Bitcoin would be old notes. Bitcoin might be intangible and odorless, but the negative vibes around the cryptocurrency have imposed a widespread negative perception about it.

It is important to acknowledge the vital role played by miners in the Bitcoin network. Without them, it would be almost impossible to increase the supply of Bitcoin so that it matches the market demands. The popularity of Bitcoin is growing because of swiftness, security, and transparency of their transactions.

There’s no valid reason for degrading non-virgin Bitcoins. In the case of fiat money, people prefer newer notes because of their clean appearance and unique smell. In fact, some people pay more for new notes than for old notes. This means that newness of a currency increases its appeal to users despite having no impact on its intrinsic value.

Since cryptocurrencies are intangible, the aspect of beauty is out of the question. It is also difficult for laymen to grasp the concept of digital currencies and their underlying blockchain technology. However, as activists continue to educate the masses on these subjects, it is only a matter of time before the people learn that cryptos such as Bitcoin may indeed be ‘dirty.’ Such Bitcoins may be subject to scrutiny in the future, mainly from regulatory authorities, and can adversely affect the holder even if they are unaware of the coin’s transaction history prior to their acquisition.

Gresham’s Law

According to this law, the circulation of ‘good’ money eliminates dirty money from the market. It is based on the theory that if people have a choice between good and dirty money, they will continually pick the clean option. Basically, the good money will continue to circulate as the dirty money remains irrelevant and eventually disappears from the market.

While it is impossible to entirely avoid the use of dirty Bitcoins, one thing is certain – no institution or individual would intentionally approve of the use of such cryptos in their transactions. That said, the elimination of the dirty coins will surely have a significant impact on the supply, the value and the reputation of Bitcoin.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide