What Is Virgin BTC? Why Does It Trade With Premium?
New global rules for cryptocurrencies will increase the price premium for “virgin Bitcoin”. But why are these people ready to pay for an extra money for this? New rules developed by FATF oblige to identify a person. For this reason, some people prefer to pay a premium of 10% to 20% for “virgin Bitcoin”.
What Is “Virgin Bitcoin”?
By the way, this is a coin with an unsullied history of transactions or without any history. In general, to verify the movement of the Bitcoin is convenient. Therefore, the investors do not want to do business with coins, which were used on the darknet or were stolen in the crypto exchange hack. The problem is that any Bitcoin that has been used in any significant way, may be allocated with in the future as well.
Regulated financial areas may take a similar solution. It is not advisable to accept a Bitcoin that is exactly the same, as the bank does not have to accept money from drug dealers. This contradicts the idea of “interchangeability” of Bitcoins, according to which each of them must be identical and exchanged.
Note, that fraudsters also prefer BTC, which, in the same way, also reminds them of the unexpressed part.
According to CipherTrace data, 75% of all transactions at darknet are used with BTC, while Chainalуsis suggests this figure will exceed 1 billion this year.