The crypto-money of the dark web, only used by traffickers and dealers: this is an image well anchored in the collective imagination. Yet the figures speak for themselves: less than 1% of the transactions carried out on the market are illicit. So why this bad reputation?
A free currency, with no state or bank control
The creation of Bitcoin responds to a specific need: to benefit from a payment system whose use is not controlled by the States and by the Banks, where each user has an equally important place. This conception of money is in total disruption with the classical banking system, in which precisely identified and powerful institutions control the issuance of money, its value, and its use.
The value of Bitcoin as a currency is determined by Forex and all its users: not even Satoshi Nakamoto, its mysterious creator, can influence its price.
The same applies to the payment system: accounts and transactions are checked by means of a computer in the network. In order to guarantee total impartiality, a device is chosen at random every ten minutes from among all the machines connected to the network.
The Silk Road effect
In 2011, an online drug sales platform will appear on the Dark Web: Silk Road. In order to ensure maximum security for its users, Silk Road imposes the use of Bitcoin as a currency on its marketplace. However, Bitcoin does not completely guarantee the anonymity of its users, but it offers more discretion. The case made a lot of noise when the creator of Silk Road was arrested by the FBI in 2014 and Bitcoin’s bad reputation exploded.
ICOs: good projects and some scam
Originally used by startups to raise funds, Initial Coin Offers or ICOs have multiplied in recent years. They are often confused by investors with real crypto-money when in reality they are fundraising, in which a company offers a token in exchange for a sum of money. This issued token allows the holder either to receive a portion of the profits generated by the company, such as shares or to use it on the company’s platform.
However, if some ICOs are indeed scams, it is not the crypto-money itself that is the cause, but most often the lack of knowledge of the investors about the project. With a bit of research, it is easy to realize that the business plan behind the project is not the same. And you can find that some ICOs are actually very good project with some awesome technology.
Of course, if some ICO does not hold up then it is then better to invest in another crypto-money.
Fear of being hacked
As soon as the tool used is a computer, the fear of being hacked arises. However, Bitcoin and blockchain are very safe and transparent technologies, provided they are used properly. Indeed, if you buy your Bitcoins on a secure platform, you have no fears about the safety of your assets.
Just as you don’t share your bank card code with just anyone, the same goes for your wallet. Always check that the site or platform is secure before trading Bitcoins.
In conclusion, Bitcoin is a secure crypto currency, sometimes more so than scriptural currencies. Bitcoin is not, and in fact, never has been, the currency of the major web criminals, but another way to make financial transactions.
Enkronos team can help you with crypto currencies applications. Our experienced team will lead you with your fintech initiatives.
Enkronos Marketing Team