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Why Bitcoin has a bad reputation in the eyes of the community, sometimes very difficult to admit that bitcoin suffers from a perception problem serious negative: that in the minds of many people, bitcoin is automatically regarded as thinking about drugs, terrorist financing, and laundering money that is closely related to fraud or crime.

This slows consumer adoption, regulators set standards that are too high for bitcoin companies to operate and many banks still refuse to provide bitcoin companies with simple operating accounts.

All of this results in inhibition of innovation, the creation of an unhealthy competitive environment, and ultimately negative connotations for consumers who want to take advantage of this new technology and its myriad of benefits.

So let’s try and put a few things into a perspective that many people have embraced:

How Did All of This Happen?

So as a starting point, we need to realize that we are formulating all of our arguments on very shaky grounds. With this in mind, all we can do is appeal to the common sense and fairness of people to consider the facts before making a thorough judgment on some very important and complex topics.

Don’t put a cart before the horse. Which means not carelessly put something that is not the place.

The Bitcoin Economy is Very, Very Small.

When measured by market capitalization, it is currently worth around $6 billion. By some estimates up to 30% of it is unusable, so in fact, it’s even smaller. Call it Bitcoin Free Float (BFF) for now. Using this practical visualization from Visualcapitalist.

We don’t even need to look at the respective industry growth rates or other much larger data points like the value of gold, the value of the global payment system, or the broader definition of money – whichever way you look at it, the size of the bitcoin economy is really insignificant right now. .

How bad is it really?

Getting reliable data on a bad reputation for Bitcoin usage is very difficult, but we have to start somewhere. On the other hand, we’re talking about the power of disaggregation, so instead of using the typical “bitcoin is sometimes used for drugs and by terrorists and other evil things” narrative, let’s get a little more specific:

Terrorist Financing

While we don’t have data right about so far in the Bad reputation of the bitcoin economy, we know a few things. First, that most law enforcement officers we’ve worked with saw articles about ISIS allegedly using bitcoin to fund their operations.

Disturbingly enough, very few of these same officials had knowledge that European Union law enforcement agency Europol later published a report citing no evidence to link ISIS to bitcoin.

Zat Illegal

Addictions come in many forms, and as the real medicine market, the biggest beneficiary, in this case, is the ‘producer’ and ‘push’. The bitcoin and drug narrative sparked a lot of public interest, and while some of it stemmed from fact, it certainly didn’t represent the broader bitcoin economy. Let’s look at a few examples:

Here you can clearly see that transactions directed to illegal substance sites are very few. This is very important to know, as it also helps legitimate bitcoin players flag users who might transact on the site as higher risk, or ban them altogether.

Ponzi Schemes

While most Ponzi schemes are designed to live in the grey zone and therefore technically illegal until they are officially declared ‘Ponzi’ (usually when they start to explode), this is also a ticking time bomb on bitcoin that will pop when the time comes. arrive.

I would bet all of my bitcoins that in the next 12 months titles like “collapsed bitcoin Ponzi scheme” will be in the news, making it seem as though bitcoin itself is a collapsing ponzi scheme. Now luckily most people, including the chief economist at the World Bank, have realized that bitcoin is not a Ponzi scheme that will create a lot of confusion in the market when it finally explodes.

Money laundering

That launderers prefer to use non-transparent, high-liquidity venues, usually large opaque markets, All the bad reputation possessed by Bitcoin must be accepted. Some money launderers may have started using it long ago before having a true understanding of how bitcoin works.

However, as their knowledge grows around the world, many of them realize that this is not the best way to do it. Although it is very difficult to get accurate data on the global market for money laundering.

Conclusion

However, back to each other’s beliefs, even though much news circulated in the media and became the talk of many people. If you believe that invest in Bitcoin does not function as an ordinary person will think, you are a lucky person and have the opportunity to become rich in the future if you are serious about pursuing this field.

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