{"id":7258,"date":"2020-01-09T20:04:44","date_gmt":"2020-01-09T18:04:44","guid":{"rendered":"https:\/\/forklog.media\/?p=7258"},"modified":"2020-01-20T02:29:54","modified_gmt":"2020-01-20T00:29:54","slug":"why-virgin-bitcoins-are-more-expensive","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/why-virgin-bitcoins-are-more-expensive\/","title":{"rendered":"Why Virgin Bitcoins Are More Expensive?"},"content":{"rendered":"

After FATF had uncovered their new AML\/CFT recommendations that would become fully enforceable in June 2020, investors started getting interested in virgin Bitcoins, i.e. freshly minted coins that were not involved in any operations aside from mining.<\/span><\/p>\n

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First and foremost, that happens due to new technologies for blockchain analysis that untie the hands of regulators. Coins that have been a part of some shady schemes can be frozen.\u00a0<\/span><\/p>\n

This somewhat reasonable precaution has produced a slightly unexpected effect: even though Bitcoins are fungible by design, freshly minted coins are now more expensive than their older peers. And there are several reasons for that.<\/span><\/p>\n

Bitcoin Is Not Anonymous<\/b><\/span><\/h2>\n

Contrary to the popular myth, Bitcoin is anything but anonymous. Its network is transparent and transactions are traceable. Plus there is no chance to remove or rewrite the history of operations. Theoretically, Bitcoin could be anonymous yet the current version of the system is very far from it. Each transaction has to be publicly registered, which means that anyone can see monetary flows in real-time.<\/span><\/p>\n

On the one hand, users cannot identify transaction data because any transaction number is just a string of random numbers. On the other hand, if at least one transaction and the sender is identified, it means that all other participants can be traced as well. There is a chance, therefore, that law enforcement or financial regulators can do that, too, and arrest the involved persons for, let\u2019s say, tax evasion. But it also means that even if you have never evaded taxes, your Bitcoins could be used for that by somebody else a few years ago. Or they could be used for money laundering. Or even financing terrorism, which are the things the FATF was worried about in the first place.<\/span><\/p>\n

Meanwhile, blockchain analysis is so advanced now that tracing is possible even for multiple operations between different people and trading platforms. As a result, every Bitcoin holder is theoretically at risk of owning dirty money and facing consequences for someone else\u2019s misdemeanor.\u00a0<\/span><\/p>\n

\u201cThis a big concern for hedge funds that are concerned that their entire fund could be tainted by a few bad tokens. While this is less likely to affect those holding small amounts, larger traders could potentially, and unwittingly, hold larger amounts of stolen assets, lowering the value of their investment pool through association,\u201d<\/strong> CipherTrace CEO Dave Jevans <\/span>told<\/span><\/a> Cointelegraph.<\/span><\/em><\/p><\/blockquote>\n

Virgin Bitcoins in a Nutshell<\/b><\/span><\/h2>\n

Virgin bitcoins are basically freshly minted Bitcoins that nobody has sent to anyone else. Dovey Wan, the founding partner at Primitive Ventures, also calls them coinbase Bitcoins while stressing that this has nothing to do with the well-known U.S. company.<\/span><\/p>\n

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if anybody wants to buy coinbase $BTC<\/a> (virgin Bitcoin, freshly mined) feel free to DM me<\/p>\n

— Dovey "Rug the fiat" Wan (hiring) (@DoveyWan) August 5, 2019<\/a><\/p><\/blockquote>\n