- Every bitcoin today once was a virgin bitcoin
- It comes into circulation, it loses its uniqueness
Virgin Bitcoin refers to bitcoins that a validator earns by mining the network but never uses for any transaction at all. That is why, there is no history of virgin Bitcoin on the network as it has been received by the validator in exchange for rendering its services.
Every bitcoin today once was a virgin bitcoin, it totally depends on the miner to trade the wrapped Bitcoin (WBTC), the bitcoin earned by the validator by mining, whether he/she wants to trade it totally or partially or doesn’t want to trade them at all.
Generally, it trades at par with regular bitcoin as it carries the unique property of having no history which makes it the safest bitcoin to hold.
Safety of bitcoin
As it is known that all the transactions on Bitcoin are recorded and can be traced back from the point of mining. But at the same time, the safety of Bitcoin is assured by no one knowing the name of another individual and all transactions are anonymous. The anonymity on the network is limited to not knowing the particular identity of the wallet holder. This can be either called the open way of making transactions.
Assuming a scenario where one person used bitcoin to make payment to a criminal for executing any criminal activity and it is found that the person who made payment, purchased bitcoin from you and the investigating agency comes to know this, then the investigating agency will blacklist your bitcoin even though knowing nothing about the person. This is the reason why people are skeptical about Bitcoin and are more interested in virgin Bitcoin.
Therefore, those who can afford Bitcoin are going towards virgin Bitcoin instead of buying regular Bitcoin. After all, no one wants to lose their investment without knowing anything about it.
From where to purchase virgin bitcoin
Virgin Bitcoin directly comes from miners, so it can be purchased in only peer-to-peer mode. Some miners try to advertise their it to attract potential buyers and sell it at a premium price but till now no such market has developed as it is difficult to establish.
Reason for not having a market for virgin Bitcoin –
Mining pool
Mining is done by the miners in the mining pool which limits the differentiating point in creating new blocks on the blockchain. Basically, miners add a few steps in the process which makes the delivery of the virgin bitcoin difficult to realize.
Fees
Forming a mining pool with large miners’ exits and mines alone, then it will increase the variance of winning block rewards and this will make miners’ income less predictable. Furthermore, miners do get the advantage of transaction fees with block rewards, which will contradict the concept of selling Bitcoin.
Transfer
If there would have been any market for virgin bitcoin then it will raise the risk level for other individual coins and miners will face difficulty to transfer it to buyers. It will also be difficult for the market to define the premium price for the individual coin transfer.
UTXO
Unspent transaction output, such as virgin bitcoin, comes into circulation, it loses its uniqueness and once it has been traded, it is counted in other quantities of bitcoin circulating in the crypto, and its differentiating factor ends.