The truth about Bitcoin and the illicit economy that it funds

EUrJokingMeRight

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Sep 28, 2009
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Since the birth of the cryptocurrency, Bitcoin has been widely dismissed and condemned as the prevail of drug dealers, murderers, Russian Mafia etc etc. You only have to read a couple of pages on any Bitcoin thread and you'll quickly see how popular that view is and that its past off as knowledge.

But how true is it?

If I said that the amount of Bitcoin traffic that IS involved in illicit use, ie Bitcoin 'laundering' amounts to less than 1% of the overall would that surprise you?

Here is a report from 'the Foundation for Defense of Democracies’ Center on Sanctions and Illicit Finance that states just that.

https://bitcoinmagazine.com/articles/bitcoin-laundering-study-where-do-criminals-turn-mask-illicit-cryptoassets/


Much of the study, which is titled “Bitcoin Laundering: An Analysis of Illicit Flows Into Digital Currency Services,” revolves around the use of “conversion services.” Conversion services are basically platforms where users convert bitcoins to fiat currency (a Bitcoin exchange) or another cryptocurrency (a cryptoexchange), or move the bitcoins to another Bitcoin address accessible to the user. This results in a flow of funds that cannot be viewed or traced directly on the public blockchain.

Another notable aspect of the study is that the data indicates a low level of bitcoin laundering as a percentage of all payments sent to conversion services.

“The amount of observed Bitcoin laundering was small (less than one percent of all transactions entering conversion services),” notes the study.






So whilst there is some use of bitcoin for illicit use it is on the decline and much lower than the media make out.
 


venusian

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One could argue that regular currencies fund wars, dictatorships and the military industrial complex that threatens all of humanity at a vastly greater scale than the combined values of all crypto currency's added together!
 

EUrJokingMeRight

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One could argue that regular currencies fund wars, dictatorships and the military industrial complex that threatens all of humanity at a vastly greater scale than the combined values of all crypto currency's added together!
One sure could.
 

Lumpy Talbot

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Jun 30, 2015
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No
Quite like the way bitcoin and cryptocurrencies have displaced the banking and lifestyle corporations' attempts to have solely a digitised and cashless system. The banking and lifestyle corps want the cashless society (along with the corporation known as the Revenue) so that they can collate data and improve efficiencies, add to profit lines and lower their research costs.

Funny how just when that sunlit upland was on the horizon along comes a disruptor like cryptocurrencies. Just as when the authorities were getting to grips with dealing with the digital world to their advantage along came the deep net or dark web.

It is a bit of a ballet.
 


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