Should it favor Bitcoin legislators or and those who want privacy?
There is a perception in some people that Bitcoin is being used in secret and illegal transactions. Sometimes politicians fall for that perception. One obvious example of this is US President Trump‘s tweet, which goes down in history. The Tweet read:” I am not a fan of Bitcoin…” Bitcoin investors who follow the agenda will remember this tweet from Trump. Trump had claimed in this tweet that Bitcoin was used in illegal transactions.
However, statistical data show that Bitcoin is not used in illegal transactions, contrary to what is thought. A report by Elliptic from last May draws attention to this issue. Illegal use of bitcoin is down from over 35% in 2012 to below 1% today.
The reason bitcoin is not used in illegal transactions is because Bitcoin is not able to successfully provide privacy, i.e. confidentiality. So Bitcoin’s failure on this. It has been suggested that cryptocurrencies such as Monero and Zcash are more in demand than Bitcoin when it comes to privacy. Because Monero’s trading volume on the Darknet is quite high.
Bitcoin’s poor handling of privacy may perhaps be considered fruitful negligence (salutary neglect). The British monarchy had willingly neglected some of its powers when Hong Kong and the United States were colonies. This neglect had led to more liberal policies being set in the United States and Hong Kong, and these regions to develop further in economic terms.
We can also consider the negligence of bitcoin developers on the issue of privacy. If Bitcoin is still trading above $ 9k, that’s partly due to the fact that lawmakers have not put an obstacle to bitcoin’s development. In short, there is an unnamed agreement between bitcoin developers and lawmakers.
Due to the motivation for privacy and Privacy, Monero is more in demand. But Monero’s total market size is $ 1.1 billion. The total market size of Bitcoin, however, is $ 167.54 billion. In short, it makes no sense to risk $ 167 billion for an additional market size of $ 1.1 billion.
As a result, Bitcoin should prefer to compromise with legislators to secrecy, which it is already doing.
