In addition to being untethered to governments and banks, Bitcoin was seen by many as a censorship-resistant, anonymous currency that could be sent to anyone from anywhere.
Privacy, despite being touted as a mainstay in the Bitcoin ethos, has been adopted by altcoins such as Monero [XMR] and Zcash [ZEC].
However, even with the presence of these privacy-centric coins, Bitcoin has an air of privacy, through the concept of CoinJoins. This form of transacting Bitcoins enables multiple BTC payments from several users into one transaction, thereby creating difficulty for third parties to deduce the two ends of the transaction.
Longhash, the crypto-analytics firm reported that these CoinJoin transactions are on the rise since the beginning of the year. The Longhash report obtained CoinJoins data from zkSNACKs CTO, Adam Fiscor, the company behind the Wasabi Wallet.
Since the beginning of January 2018, when the BTC price was in full swing, CoinJoin transactions started to dip. Through the infamous crypto winter when BTC’s price fell to under $3,200, privacy was less looked upon by the larger coin market, with more emphasis placed on salvaging the price.
In the past few months however, CoinJoin transactions are seeing a resurgence owing to the market recovering and Bitcoin inching closer to its glory days. Additionally, the report added that Wasabi Wallet’s release in August 2018 was also an important factor in the rise in the number of CoinJoin transactions, with the percentage of monthly Bitcoin payments growing from 1.31 percent to 4.09 percent.
The report pointed out key points through Bitcoin’s history where CoinJoin transactions have surged. Longhash stated that the rise in CoinJoin transactions before 2013 was due to developers testing out transactions with minimal payments on the network, peaking at over 7.5 percent of all BTC transactions. The release of the Blockchain Shared Coin Integration in November 2013 caused CoinJoin transactions to surge in 2013-2014, reaching over 6.25 percent.
Following the removal of Blockchain’s CoinJoin feature, transactions saw a massive dip in early 2014. Join Market, the CoinJoin implementation that was pegged to enhance the privacy and fungibility of BTC transactions, was released in 2015, which led to a massive increase in the CoinJoin transactions. This took their share to almost 4 percent, which the current upswing has overtaken.
CoinJoins create a layer of anonymity for Bitcoin transactions, but the report states that “the existence of these types of transactions are relatively easy to identify.” Two key points are required to uncover such transactions; first, the transaction will have two outputs of the same value and second, the output value will not be more than the input value.
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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