The real danger facing cryptos is no longer about whether crypto investors should buy or sell at the right time to make profits or avoid massive losses.
It’s not so much about how cryptos are facing increasing scrutiny over fraudulent ICOs, and anonymous trading sheltering money laundering activities.
Yes, for digital currencies to become legitimate value holding assets they need to somehow be subjected to some form of regulatory conditions.
But the real danger today is that they may be illegal to trade, period.
Sexual messages on Blockchain
Science Alert (SA) said that Bitcoin could become illegal almost everywhere, after finding that Blockchain was hiding something ominous within it.
“An analysis of the Bitcoin blockchain – the publicly accessible ledger of transactions upon which the system is built – has revealed this vast trove of data is irrevocably tainted with unremovable links to illegal child pornography, which are inevitably distributed among and by all users of the currency,” said SA.
“The discovery of this – in addition to other questionable and possibly outlawed content stored within the blockchain – hypothetically makes Bitcoin ownership illegal in almost every country that has laws against the possession and distribution of images of child abuse.”
That report came after researchers from Germany’s RWTH Aachen University, carefully scrutinized the Bitcoin blockchain aiming to find evidence of that they call “arbitrary data”, or information unrelated to real transactions.
And they found a lot.
“In their analysis, the researchers uncovered more than 1,600 inserted files on the blockchain, over 99 percent of which are texts or images, including links to child pornography, copyright violations, privacy violations and more,” said SA.
“Since all blockchain data (regardless of crypto type) is downloaded and persistently stored by users, they are liable for any objectionable content added to the blockchain by others. Consequently, it would be illegal to participate in a blockchain-based as soon as it contains illegal content,” said the German team in a note.
If you own bitcoin in any of the 112 countries that have ratified a protocol of the “Convention on the Rights of the Child”, you are not only breaking the law, but also participating in promoting a heinous activity, albeit unintentional.
Technically, you could face jail time.
Some good news for a change
According to the CoinTelegraph (CT), the recent G20 Summit in Argentina considers cryptocurrencies risky, said the head of Italy’s central bank, but the broad consensus is that they should not be banned.
“After days of negative news, this is a positive shift for the cryptomarket, which led by Bitcoin, is trying to pull back from recent lows,” said CT.
“A recent survey by Finder.com shows that only 8 percent of Americans own cryptocurrencies and only 8 percent plan to buy it in the future. With about 92 percent of the population still untapped, the markets have a long way to go.”
It added that Bitcoin/USD broke out of a descending trend on March 20, which is a bullish sign, and depending on sentiment, there could be a rally to over $12,000.
“The next dip towards the $8,800 levels should offer the traders a good entry opportunity,” said the CoinTelegraph.
Industry site Brave New Coin said that Bitcoin has recovered 50% from lows set in early February.
“The market cap now stands at $151.48 billion, with $3.26 billion traded in the past 24 hours., BraveNewCoin said.
Meanwhile, Coindesk reported Jack Dorsey, chief executive of Twitter and payment company Square, as telling The Times in an interview published Wednesday, that he believes the cryptocurrency will take over the U.S. dollar’s dominant place in world finance and become the primary global currency for payments.
“Suggesting the shift could happen in 10 years or perhaps less, the entrepreneur said: “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be Bitcoin.”