I'm new to Bitcoin and am trying to wrap my head around where and when bitcoins are used. I understand that Bitcoin is accepted by a lot of legitimate websites (now reddit, wordpress, etc) for digital goods or services and there are also online market places that sell physical goods. There also seems to be a lot of illicit activity transacted in Bitcoins since it is (fairly) anonymous.
My questions are basically:
- What types of things is bitcoin buying and for what percentage of the total transaction volume are these things responsible?
- How much of the transaction volume is responsible for physical or digital goods as opposed to just bitcoin trading?
- Are these markets sustainable or are they likely to disappear (i.e. the illicit activity)?