University Professor: Bitcoin Transactions Are NOT Really Anonymous

2.7.2014    BY PATRICK ROVE

The digital currency Bitcoin is one of the hottest financial stories in the world right now — especially after skyrocketing 5,000% in one year (which includes a roughly 30% drop in recent months).

But many Bitcoin investors may not be too happy when they hear about the research being done by Matthew Green, an assistant professor of computer science at Johns Hopkins University.

It turns out that Bitcoin transactions are not as private as many people think.

According to Green, every single Bitcoin transaction is recorded in a public ledger. The ledger shows the size, time, and amount transacted. This ledger is necessary to prevent duplications --but professor Green says it's also the key reason why Bitcoin is not truly anonymous.

Green and other cryptography experts say patterns in the ledger can be tracked with data-mining software and ultimately traced to the user.

In other words, if you think you can use Bitcoin to make anonymous payments… or secretly move money around the world… think again.

With a little digging, just about anyone, including the U.S. government, can track every Bitcoin transaction you make.

Editor's Note: PhD currency expert finds alternative currency that’s safer and more profitable than Bitcoin, and totally anonymous too. Details here…

Unfortunately for Bitcoin buyers, the digital currency has recently come under fire because of other problems too.

Dr. Steve Sjuggerud, a PhD currency expert and a former mutual fund Vice President and hedge fund manager, says: “Any way you look at Bitcoin right now--as an alternative currency or even as an investment--it just doesn’t make sense.”

“A sound currency needs two very basic things,” says Dr. Sjuggerud. “First, it must be readily accepted by others. And while it's becoming easier to spend your Bitcoins, it's still much more difficult than it is to buy with dollars. So it’s more a novelty than a currency.”

“Secondly,” says Dr. Sjuggerud, “A currency must be stable. And Bitcoin is anything but. Did you know it’s risen or fallen by 5% or more on 116 different occasions in the last year? The U.S. dollar hasn't done that even a single time.”

But how does Bitcoin stack up as an investment?

Dr. Sjuggerud says, “While it's impossible to determine a ‘fair’ price for a Bitcoin right now, I think it's hard to call it ‘cheap,’ after a 5,000% gain in one year.”

Dr. Sjuggerud says you’ll find the biggest gains in the investment world when buying investments that no one is talking about… and selling these investments when everyone is talking about them.

Editor’s Note: One alternative currency is backed by gold, is favored by some of the wealthiest people in America, and could return 600% or more over the next few years. Details here…

In other words, right now Bitcoin doesn't meet the basic criteria for a currency… and it's probably not a good investment. And many new Bitcoin buyers are likely to find out the hard way that their transactions are NOT anonymous.

Still, Dr. Sjuggerud says he believes strongly in the idea of Americans getting at least some money out of the U.S. dollar.

After all, the U.S. currency has lost 90% of its value over the past 60 years. A million dollars today has the equivalent purchasing power of just over $100,000 back in the 1950s.

And because of that, Dr. Sjuggerud says there's actually a totally different type of “cryptocurrency” you should consider, which has until recently remained largely a secret of wealthy Americans.

This unique alternative is completely anonymous…
and is actually backed by gold and silver.

It allows you to carry up to $1 million or more in your pocket… is accepted in every state in America (in every country in the world as far as he knows)… and unlike Bitcoin and most other cryptocurrencies out there today, this has nothing to do with the Internet or computers so it works even when the electricity goes out.

Dr. Sjuggerud says this unique alternative is probably the safest currency on Earth, and offers you a sound way to get out of the U.S. dollar AND potentially make a small fortune in the years to come.

Dr. Sjuggerud and his team have put together a short slide show presentation, explaining all the details on this alternative “secret currency.”

You can access their work free of charge on their website, here.

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