An unknown cryptocurrency trader turned $55 million into $283 million in just over one month.
This is the public identification code for the virtual wallet of this anonymous Ethereum trader, the only clue to the person or persons behind the incredible earnings. On June 11th the code was posted on Instagram, boasting of a 413 percent accumulated profit from Ethereum blockchain’s digital currency, ether.
Faced with the growth of cryptocurrencies, experts are asking whether anonymity is beneficial or not. Hidden identities are a popular feature of the twilight world of virtual money. Now that the total value of cryptocurrency, such as bitcoin and ether, soared June 6 to more than $100 billion, concerned regulators say it might be time to link wallet IDs with actual humans.
Moreover, the credibility of virtual currencies will not rise if they are used for criminal purposes. In this context, anonymity will become more a hindrance than an asset for virtual currencies and their potential future popularity. However, some people see it a bit differently.
“One of its more important features is that you don’t have identities tied to this,” said Spencer Bogart, head of research at venture firm Blockchain Capital. “This financial privacy is an important characteristic.”
To this end, would tying digital wallets to identifiable persons defeat the purpose of digital currencies like bitcoin and ether? Regardless of where you stand on the privacy issue, there needs to be a leap in widespread adoption for cryptocurrencies to reach the masses.
It’s possible that for a cryptocurrency like ether — which is used to pay for applications that run on the Ethereum blockchain — having virtual wallet IDs link with humans could be thie leap. This would help ether avoid having its reputation sullied by cyberattacks or technological bottlenecks and avoid flash crashes similar to what we saw last month.