Bitcoin can’t be viewed as an untraceable ‘crime coin’ anymore
The digital currency known as Bitcoin has struggled with its reputation in the media, often being called a “crime coin” or “black market currency” by the mainstream media. But Bitcoin is so much more than this, and now the cryptocurrency is being given the credit we always thought it deserved.
Bitcoin, at least in its current incarnation, is not anonymous. But, as we all know, Bitcoin is also the currency of choice for illicit commerce, and some of the negative perceptions about it have been getting in the way of the money’s acceptance as a legitimate payment method. A taxonomy of Bitcoin transactions was recently published by a group of researchers, and it shows us that Bitcoin transactions are not as anonymous as many believe. Of course, there are ways to get around this issue.
After being classified as a “money transmitter” in the eyes of the US government, Bitcoin is now experiencing a resurgence as a start-up investment and store of value. But one thing hasn’t changed: Bitcoin always has been backed by the promise that it can’t easily be traced back to any nefarious activity.. Read more about bitcoin news and let us know what you think.
Cryptocurrency is a new technology that has made its way into the mainstream, paving the way for a total overhaul of our long-established financial institutions. Of course, a certain amount of cynicism is inevitable.
This common mistrust is exacerbated by crypto’s connection with crime. There’s no disputing that bitcoin has been and is still being used for illegal operations all around the world. Having said that, as crypto’s usage and application become more widespread, the myth that its development enabled vast crime must be addressed.
It is important to make a good first impression.
On Silk Road, a renowned online illicit market, Bitcoin (BTC) was launched as a bartering instrument. The fact that hired criminals were among Bitcoin’s early users harmed the currency’s image. Coupled with Bitcoin’s enigmatic beginnings, where no one knows where it originated from or who developed it, popular perceptions of the new form of money were naturally negative. In 2021, El Salvador’s residents are urged to adopt Bitcoin especially for grocery shopping and utility payments.
When did Bitcoin begin? Related: What is the history of Bitcoin?
For the majority of observers, crypto shifted suddenly from its deep connections with the darkest corners of the internet to helping people of poor nations build a better future. This was the product of a lot of trial and error, as well as growing use cases and ongoing investment. For many outside observers, however, El Salvador’s adoption represents a little good use of a contaminated technology. The industry enables ongoing blockades between future good use cases for crypto by neglecting to repair the reputational harm created by Bitcoin’s beginnings.
Educating the public on the true advantages of cryptocurrencies would not only help the industry in the near term, but it would also allow for continued systemic innovation and development of blockchain technology in the long run. BTC is the poster child for blockchain, and clearing up misunderstandings about the digital currency is a major and essential step that regulators and the rest of the industry have yet to recognize.
Bitcoin’s antifragility is due to its changing narratives.
As things are, any concerns the public has regarding the connections between crypto and crime are addressed by dramatic headlines that describe a story of criminals using BTC on a regular basis, rather than the numerous good developments taking place in the broader blockchain sector. The story is being dismantled. surrounding Bitcoin and breaking the connections between crypto and criminality requires a common knowledge of the real cryptographic technology that enables cross-border, peer-to-peer payments.
Dismantling the narrative
Bitcoin isn’t an untraceable, anonymous, and harmful technology utilized by hackers and criminal gangs. It’s a blockchain-based decentralized, fully traceable, and secure peer-to-peer payment system. While the digital money may be produced, transferred, and stored without the involvement of any government or financial institution, each transaction is recorded in a permanent fixed ledger.
As a result, all cryptocurrency transactions, including Bitcoin, are public. To put it another way, the notion of anonymity linked with crypto and crime is false. Investigators in the United States were able to track Bitcoin worth more than $4 million that the Colonial Pipeline had paid to hackers during an assault earlier this summer. This not only emphasizes the traceability of cryptocurrencies, but it also disproves the popular belief in anonymity.
The problem is that the government is unable to capture criminals who use cryptocurrencies, as shown by the Silk Road and other illegal operations enabled by Bitcoin. This is beginning to change, and the playing field is getting more even. British police captured $155 million worth of Bitcoin from a criminal group in the United Kingdom, demonstrating the country’s growing enforcement capabilities. The notion that Bitcoin is an untraceable “crime currency” is debunked by real-world instances of authorities tracking BTC transactions. It is just an instrument utilized by crooks, similar to fiat money.
Although the number of crypto-related ransomware assaults seems to be enormous, it pales in contrast to the usage of fiat currency in comparable crimes. In 2020, illegal behavior accounted for just 0.34 percent of all bitcoin transactions. Money laundering and illegal activities, on the other hand, account for between 2% and 5% of global gross domestic product ($1.6 million and $4 trillion) per year. The ongoing vilification of crypto is unjustified, given the untraceability and anonymity associated with real currency, as well as the continued development of police powers.
It’s a ridiculous reason to ban cryptocurrency to combat crime.
Some of the public’s skepticism about bitcoin is a normal response to technological advancement. Many people opposed the concept of a linked World Wide Web in the early days of the internet, citing a slew of social consequences from the worldwide growth of the information superhighway. In some respects, the internet continues to foster new types of criminal activity. Its reputation, on the other hand, is unblemished to the point that society could not operate without it. The internet’s reputational connection with crime has been entirely severed; it is expected that crypto will do the same.
The advantages of cryptocurrency are being overshadowed.
As decentralized technology becomes more popular, these connections to crime have become a major source of worry for financial institutions. Some organizations, such as the Central Bank of Turkey, have outright prohibited cryptocurrency transactions due to criminality fears, demonstrating how the false criminality narrative is hindering the general growth and acceptance of a very beneficial technology.
Is this the start of crypto payments becoming outlawed in Turkey?
In El Salvador, a nation ripped apart by crime, digital assets provide a haven for people in the face of a low-income economy. Many Salvadorans’ everyday lives may be transformed by the removal of banking expenses, as well as the cheap transaction fees and accessibility generated by the usage of Bitcoin.
BTC and other cryptocurrencies are assisting Venezuela’s economy in recovering from catastrophic hyperinflation. These advantages of crypto adoption demonstrate the enormous potential for widespread cryptocurrency adoption, which is ostensibly hampered by the persistent obstacles erected by the crypto crime narrative.
What is the true motivation behind El Salvador’s ‘Bitcoin Law’? Experts respond.
Crypto, in some ways, symbolizes the broader blockchain sector, exposing yet another major problem connected with the demonization of digital assets. Blockchain can be used to build peer-to-peer lending systems, eliminating the need for middlemen to manage financial operations and making money more accessible to everyone. Furthermore, the many technical advancements connected with the broader blockchain ecosystem that are poised to benefit society must continue to fight the erroneous notion that blockchain-based digital assets are criminal in nature.
Early adopters of crypto lead the road ahead in this fight, providing powerful support for the future of digital assets. Customers can pay their bills with Bitcoin through AXA Insurance, Visa will soon accept cryptocurrency to settle transactions on its payment network, Amatil, Coca-Asia-Pacific Cola’s distributor, has enabled cryptocurrency payments for its suppliers, and luxury brands have committed to using blockchain for supply chain management. This is in addition to big financial organizations such as JPMorgan Chase, Goldman Sachs, Citigroup, and BlackRock investing in Bitcoin.
Related: Blockchain isn’t a panacea, but it’s a lifesaver when it’s required
Creating a path forward
Fundamentally, the news cycle and a lack of common knowledge keep the general agreement on crypto alive. We can deduce two things from this: crypto is frightening many people for the wrong reasons, and many authorities are trying to stifle its development. Lawmakers want to make crypto transactions more regulated in order to eliminate the anonymity that comes with them. This, however, shows their lack of knowledge of cryptography.
Authorities are attempting to bridge the gap on unhosted wallets.
Rep. Bill Foster, who talked about the strong “sentiment in Congress that if you’re engaging in an anonymous crypto transaction, you’re a de facto participant in a criminal conspiracy” in a recent interview, exemplifies this lack of knowledge. However, Congress is not to fault for its members’ erroneous views about cryptocurrency. Furthermore, how can ordinary people be supposed to grasp anything about crypto that they aren’t being taught if authorities and legislators are so out of touch with the technology?
Acceptance is required at the end. Cryptocurrency and the technology that underpins it are being utilized to generate new possibilities and technical advances in a wide range of fields, including healthcare and finance. Yes, Bitcoin is used by some criminals. However, we have a duty as an industry to disseminate the good news and educate people about the real worth of cryptocurrencies. Regulators must abandon the notion that banning new technology would solve all of their problems. Accepting the future and legitimizing the technology will allow for further innovation in cybercrime prevention, as well as widespread adoption and the eradication of the false notion that crypto is inextricably connected to crime.
There is no financial advice or suggestion in this article. Every investing and trading choice has risk, and readers should do their own due diligence before making a decision.
The author’s views, ideas, and opinions are entirely his or her own, and do not necessarily reflect or represent those of Cointelegraph.
Brad Yasar is a blockchain and creative technology entrepreneur, investor, coach, and advisor with a worldwide emphasis. Over the last 30 years, he has created and bootstrapped numerous businesses to maturity. Brad is the CEO of Equifi, a worldwide decentralized financial network. Beyond Enterprizes, which he founded, provides strategic and technical leadership, consulting services, and support to companies at all phases of blockchain implementation and development.
Crypto-currency is something that has been around for quite some time now. However, it was only recently that we have seen a wide acceptance of it as a legitimate form of currency. However, as it grows in popularity, so does the use of it for various illegal activities. These illegal activities, whether it be the use of it to buy drugs, or the selling of it on the dark web, can’t be viewed as something that is “good”. This is why the United States government has recently been trying to regulate it.. Read more about is cryptocurrency legal and let us know what you think.
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