Why Bitcoin Is Actually “Bad For Crime” Contrary To Belief

One thing we can all do is help spread truths to combat the myths and misconceptions about Bitcoin & cryptocurrency. One of the biggest is that Bitcoin is used for criminal activity and that could not be further from the truth.


Talking about his management fund, which is the largest crypto index fund manager worldwide, he explained that this is a topic that frequently came up with the people they work with. Everyone wants to know what role crypto plays in crime and what they should expect in the future. Referencing Chainalysis, an analytic service which is used by law enforcement, Horsley pointed out that the data on the site showed a downtrend in the use of Bitcoin and cryptocurrencies by cyber criminals in ransomware attacks.

For a number of years, Bitcoin has been the main currency used by cyber criminals to accept payment for ransomware attacks. Lots of companies have fallen victim to these attacks and have had to pay large amounts of money in crypto to attacks. One of those companies recently was Colonial Pipeline. They had to pay $4.4 million in Bitcoin to the attackers.

But the story doesn’t end there. With exchanges requiring KYC for their customers, authorities are able to trace Bitcoin transactions such as these. Since Bitcoin transactions are public, it is a matter of identifying which exchanges the coins are being moved to to be sold and the accounts can be frozen. Stolen coins are then gotten back from the exchanges.

As expected, a currency and/or transaction that can be tracked with such efficiency is not a good tool for crime. Thus leading to the fact that Bitcoin is bad for crime.

Master Asked on June 14, 2021 in Bitcoin.
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