Bitcoin got out of crime? Analyzing expert opinion
One of the main problems of the modern cryptoindustry is the lack of serious recognition on the world stage. Of course, representatives of large states led to a predominantly neutral, and sometimes even negative attitude towards digital assets. For one reason or another, governments denigrate the very concept of the cryptoindustry, putting it in a deliberately bad light. Representatives of various countries point out that Bitcoin is not only “useless”, but also dangerous in the international framework. One of the main arguments is the use of the first cryptocurrency in organized crime. But at a recent general economic forum, this claim was denied. Next, we will analyze the main theses that were expressed by the leading economists of our day. This article is for those who still mistakenly believe that digital gold is associated with crime. But everyone will emphasize something new for themselves. So let’s get started.
What experts say
Literally today it became known what the participants of the general economic forum in Davos were talking about. The meeting was held in the presence of the most authoritative and interested businessmen, economists and specialists in other complex fields. And, of course, such an audience could not help but affect the cryptoindustry. The concept of Blockchain does not leave the information field, and therefore the forum participants decided to devote a whole block of their conversation to the discussion of cryptocurrencies. Or rather, their safety and possible connection with criminals.
Glenn Hutchins, who represents the Silver Lake board of directors, said that Bitcon, by its definition, cannot be associated with crime. The specialist noticed that the coin was built on a completely open protocol. The blockchain of this asset allows all network participants to track who transferred funds and where. Moreover, even the amount and time of the transfer are posted. This is undoubtedly one of the most open protocols of our time. Would criminals use a similar tool in their activities? The question is obviously rhetorical.
How crime is related to Bitcoin
Nevertheless, the opinion is still popular among the masses that Bitcoin is one of the main tools of dishonest citizens. It is allegedly used to buy drugs, illegal weapons, documents, and even pay for contract killings. However, statistics show that the first coin is almost never found on the corresponding criminal platforms. The real criminals use other, more confidential currencies. But the undisputed leader in terms of involvement in crime was and remains paper money. According to information from the United States, more than 90% of crimes are funded by ordinary banknotes. They are difficult to trace, easy to counterfeit. The only precaution the government offers is paint markers to keep criminals from spending money. But cash still has no protection.
Let’s fix one very important point: cryptocurrency is really being used by criminals. But we are not talking about open bitcoin, but about more confidential, practically untraceable coins. Bitcoin is simply useless to use in illegal transactions, because even you can track any transfer in this system. Yes, certain cryptocurrencies are used in illegal transactions. But their percentage is so small compared to classic paper means that this is definitely not a problem. According to the open statistics of digital exchanges, among all transactions performed in the cryptoindustry space, only 1.1% of transfers are associated with scams. This data is for 2019. In 2020, the indicator decreased to 0.34% and continues to fall.
Well, why are hackers demanding ransoms exclusively in digital currency? Why are they using Bitcoin? Unfortunately, there are indeed platforms in the industry that help to spoof transfer numbers and hide traces of criminal activity behind specific funds. But again. This is 0.34% of the total amount of transferred funds. Digital assets are much safer for ordinary citizens and more annoying for fraudsters. This is a simple truth that, we hope, will reach the superiors as well. To stay up to date with the latest developments in the crypto industry, follow all the news of Blockchain and technology with us. We publish only high-quality, interesting material. Thanks for attention. Good luck!