Is Bitcoin used by criminals?

in #bitcoin6 years ago

There is often public misconception that
Bitcoin is mostly used by criminals, but
nothing could be further from the truth. This
is mainly because many people think Bitcoin
is anonymous, when in fact it’s the opposite

  • all Bitcoin transactions are transparent for
    the whole world to see. People might not be
    able to link the identity to Bitcoin right away
    (that is also why it is sometimes called
    ‘pseudo anonymous’), but once they do, they
    can track everything you’ve ever done on the
    Bitcoin network. This makes it a particularly
    bad tool for illicit use.
    While Bitcoin might actually turn out to be
    one of the safest and least ‘bad’ ways to use
    money, it doesn’t mean that criminals don’t
    use it. Just like normal money, they do. But
    there are two important things to note -
    firstly, that as more data becomes available
    in the industry, the more it is becoming clear
    the number of bad uses is very, very minute
  • if the entire Bitcoin ecosystem is
    represented by a big mountain, the size of
    the bad parts is a couple of rocks. Second,
    that in any financial system, this is a risk
    that can never be eliminated, merely
    mitigated, and Bitcoin has some of the best
    tools in the world for that.
    It’s worth expanding on Bitcoin’s parallel
    with the internet particularly in the context
    of all the ‘bad stuff’ that people associate
    Bitcoin with. Is the internet all good?
    Definitely not. Terrorists, money launderers
    and drug smugglers use Facebook, Twitter
    and Whatsapp to communicate and
    coordinate every single day. Some people
    might feel uneasy about the fact that at
    least 5–30% of visible online traffic relates
    to pornography. And here we’re not even
    considering the deep and dark web, where
    there are all kinds of really bad things going
    on that we’re not going to even mention
    here.
    But despite all these issues, does society
    make a concerted effort to try and ban the
    internet? No. And it’s not so much because
    it’s hard to do so, it’s more because the
    positives to society grossly outweigh the
    negatives. For these same reasons, we
    should all be very careful how we think
    about Bitcoin, because most evidence
    suggests Bitcoin to have the same net
    positive effect, if not more, than the internet.
    Both the internet and Bitcoin are tools that
    can be used by the ‘bad guys’ or the ‘good
    guys’, and thankfully most of the world are
    in the latter category.
    Bitcoin is a lot safer than what
    most people think.

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