Australian review shows drop in illicit purchases with Bitcoin

The research paper named “Sex, Drugs and bitcoin”, published by Sean Foley, Talis Putnins and Jonathan Karlsen tracked the illegal activity all the way back to 2009
01 December 2017   1431

According to the recent research by Australian experts illegal activities performed with the use of Bitcoin, while dropped, still constitutes the third of all the transaction taking place worldwide. All the data points to the fact that the illegal activities peaked in 2014 and have been decreasing ever since. From the total of 106 million users only 34 to 36 million perform operations which involve the purchases in “darknet” and other nefarious activities. Foley stated, that it wasn't unexpected, because practically all the market had been established by pushing the legal limits, but the real evolution begins only when the regulators step in to clean up the perpetrators and put down the new rules.

This research paper will be a stepping stone to further examination of current digital currency trends, because it involved revolutionary analysis methods. Foley, Putnins and Karlsen had to develop new analytic models to reference recent Bitcoin seizures by authorities to real users. While Bitcoin is prised for its anonymity, the 33-character “name” still can be tied back to the end user because all the relevant information is stored in the blockchain. The next logical step was to create a detection algorithm based on the notable characteristics of nefarious activity taken from the sample of known users, involved in illegal proceedings. All this information is then used to estimate and infer other users, involved in the illegal activity.

The research is designed to help authorities adequately understand the amount of work needed to regulate the alternative currencies as an asset being quickly adopted by the ever-increasing amount of people in the world.

BTC Volatility to Fall by 98% in a Year

Analyst believe that low volatility indicates a decline in speculative trading 
18 January 2019   90

Since January last year, the first cryptocurrency volatility has decreased by 98%. So, if on January 16, 2018, it was $ 3,468, then a year later - only $ 61, CoinDesk reports.

Note, the daily volatility over the past year decreased from 9.1% to 3.6%, although on December 16, 2018 was about 26%.

In absolute terms, the maximum daily volatility in the first quarter was $ 973, and in the following: $ 345, $ 245 and $ 195, respectively.

At the beginning of 2019, this figure also did not exceed $ 200, and on January 12 it reached a minimum value of $ 45.17.

Analyst stressed that low volatility indicates a decline in speculative trading and an approach to a sharp price movement.

In his opinion, Bitcoin will soon leave the range of $ 3,500- $ 3,700 in favor of the bears. At the moment, the first cryptocurrency is trading at around $ 3,590.