The Darker Side of Bitcoin (BTCD)
The implications of Iguana client using BTCD to facilitate anonymous transactions
Privacy and anonymity has been a growing concern, especially with the surveillance measures being taken today. Bitcoin’s blockchain does not allow for proper anonymity since all transactions can be tracked. The Iguana client addresses this problem through the use of BitcoinDark technology known as teleport and telepathy.
The availability of a working anonymous transaction system in the Iguana Client has huge implications for BitcoinDark (BTCD) since it is required to facilitate the anonymous transactions. Liquidity is another prerequisite to ensuring proper anonymous transactions.
Back in September 2014, BTCD had a market capitalization of over $8 million (USD), with each BTCD amounting to over 0.013 BTC. Currently it sits at slightly over $1.3 million total market cap (roughly 0.0023 BTC/BTCD). A greater market capitalization is required to ensure that any anonymous transaction is possible, regardless of amount.
In a previous post, I mentioned:
the Iguana client’s efficiency along with easy to install procedures should make it a preferable choice for any Bitcoin client user and assist in the widespread adoption of Bitcoin and other cryptocurrencies.
Upon release of the Iguana client, people already familiar with Bitcoin will prefer it along with any incoming new users due to its efficiency and ease of use. Furthermore, the increase in efficiency will allow Bitcoin technology to be much more accessible throughout the world, especially developing nations. Anyone utilizing the Iguana client will be exposed to BTCD since it is included in the client. Through mere-exposure effect, I suspect that more people will begin to make use of BTCD directly or indirectly, thereby helping to increase its market capitalization. This increase in market capitalization will have a positive feed-back loop on BTCD’s value since increased liquidity will allow for BTCD to be used to facilitate larger sums anonymously and may eventually establish itself as the main method of anonymous transactions (although a long way to go!). Once Iguana is released, I expect BitcoinDark to find a higher and much more proper valuation.
Simple Technical Analysis of BTCD
1 BTCD = 0.0024 BTC (May 9,2016)
BitcoinDark appears to be re-accumulating in the 0.002–0.003 BTC range after recently testing resistance at 0.004 BTC. I expect BTCD to get back above 0.003 BTC soon and retest 0.004 BTC. If BTCD manages to consolidate above 0.004 BTC in the next move up, I expect an even bigger move to come. The timing of the moves should coincide closely with release of the iguana client.
