I wasn't able to find actual data on this. I'm under the impression that
- the majority of transactions represent ownership transfer between investors, traders and exchanges
- the majority of remaining transactions represent purchases of goods and services
- the majority of purchases made with Bitcoin are for something illegal
It's very easy to see why someone would want to buy drugs with Bitcoin. It's not easy to see why someone would want to buy coffee with Bitcoin. If I want to buy coffee with Bitcoin, isn't it easier to first exchange that Bitcoin into fiat currency, and pay for coffee with that?
Does anyone have any data regarding what percentage of Bitcoin use is legitimate?