Bitcoin Forum

Since the introduction of bitcoin in 2009, security expert have raise a lot of concerns about how criminals are attracted to the crypto currency. Your candid opinion on why do you think bitcoin is a prefect currency for the bad guys?

Bitcoin is decentralised in nature and that has made government and banks not to control over bitcoin or any other altcoins. Bitcoin can be easily transfer from country to country or from one person to another person without nobody monitoring their activities as to whether those transaction is legal or illegal and that create a smooth environment the bad guys to strive.

Why do you think?  No banks being involved, that's one thing.  The irreversible nature of it is another,
and being pseudo-anonymous and instantly transferable are yet two more things.  That's why these
hackers are demanding bitcoin for ransom.  It can be sent quickly and can't be taken back.  Bitcoin is
perfect for criminals!

On the other hand, cash has always served the same purpose and will continue to.  Bitcoin gets a bad
rap because one of the first mentions of it in the mainstream media was Silk Road.  It'll never live that
one down.  But people have been buying drugs with $20 bills since the beginning of drugs and/or $20
bills.

Since the very beginning of Bitcoin, the mainstream media relentlessly pushed news about how this new virtual currency is being used on the deep web by criminals selling or purchasing ilegal stuff since Bitcoin is anonymous and doesn't have government regulation. The thing is that Bitcoin is no longer being used that much on the dark web or at least, is not comparable to lets say how other truly anonymous cryptos are being used or even FIAT currency.

So there's a confusion, Bitcoin was indeed the first cryptocurrency used on this 'underworld' for the sole reason that Bitcoin is the first cryptocurrency, and this is why it's normally associated with ilegal practices.

From a John McAfee interview to the CNBC:


Then he adds:


This is why Bitcoin is associated with the underworld, but I've seen and I expect great adoption from mainstream users and maybe in the near future everyone is going to forget about this past 'ilegal' side of Bitcoin.

USED to. The recent price roller-coasters has basically brought it out into the open. We can say it's pretty mainstream now for a cryptocurrency. Even an aunt who's not very much into computers has asked me how to buy some.  ;D

It was easy to move money in bitcoins before but since there are now more people monitoring it, the criminal elements have to find some other ways. Monero was mentioned by one of the users. I suppose the other new cryptocurrencies coming out might work as well.

Because they think that bitcoin is anonymous. But they are very wrong. They think they can't be track by the authorities but its not the case. Although our wallets have no name attached to it, every transaction can be view in the blockchain. So anyone, including the authorities can track transactions and they can trace it back to the owner of that said address. So there's a trail.  So bitcoin is not the "perfect currency" for the bad guys. They can still used mixing services though, but I think they can still be trace if the mixing services has data logs. If they really want to be anonymous, try Monero or Zcash.

When BTC initially began it was mainly used for more of underworld trading currency as it was decentral and anonymous on infamous sites like SR. Taking its roots deep from these trades, Bitcoin was able to make it to its current day's price mainly because of attracting fame from high amount of underworld trades taking place through the currency.

Bitcoin, like any other first mover, simply became the convenient way to pay and receive payment without the need to go through a third party. E-gold and (gasp!) even Paypal were also used by the same groups of "underworld associates". Of course, the media and movies like Dope didn't do anything to address the misconceptions.

McAfee's right about Bitcoin no longer the crypto of choice for these so-called undesirables, but it isn't that Bitcoin's out of the dark and into the light. It's that the shadows have moved away from Bitcoin. Bitcoin's always been in the light... did we forget it's transparent? How else do you think Interpol and CIA claimed their huge victories against dark markets?

P.S. Monero is still catching up. It may be the crypto most suited, but it is Ethereum that leads the way for illegal transactions after displacing Bitcoin.

Because Bitcoin was originally mainly used in the underworld. It was very easy to receive and send anonymous transaction throughout the entire world. For that reason many criminals made use of the coin.

If you do know about bitcoin and its features then you would really answer this question by just common sense.Knowing bitcoin is a anonymous digital currency which is really a perfect recipe for those bad guys out there which would use this feature as an advantage for their illegal transaction would not be easily be traced by government this is one of the reasons why other governments wont really allow or adopt bitcoin into their place because the risk on rising criminality would really be there because bad guys will really see this thing as a perfect tool for their illegal doings.

I agree there are some dark sides in bitcoin but just in fear of criminals, it should not be forbidden by laws because of this single reason.
 We shouldn't assume that everybody can use of bitcoin illegally. We know bitcoin has got a large value now,so basically it is not easy to achieve bitcoins even by criminals.

Basically , as the ideas have been coming as to the reasons the bad guys would prefer bitcoin is borne out of the positive features of the currency. It is highly secured and thus, not traceable once transaction is completed and this makes it a safe heaven for dubious follows. For instance, I read recently that armed rubbers when buggle the house instead of requesting for cash would ask for transfer because they understand it can't be located.

This is actually why the saying goes that there is always an disadvantage to every advantage

Basically because of its ability to be paperless which means that it leaves no trace and that it leaves no evidence if it would be used in shady transactions. ALSl ot can be done almost virtually anywhere wherein this gives a lot of people the capability to bot even meet face to face and do trades anonymously.

Not to mention, bitcoin's nature being decentralized makes it the perfect medium under the dark web for illegal transactions due to the anonymity it provides. No government agency, entity, or individual can ever control bitcoin, and not to mention its virtual nature adds up to the convenience of abusers in using bitcoin. There are also no laws that prohibit or limit the usage of bitcoin. Due to these factors, some countries ban the usage of it fearing that it would contribute to the problems regarding criminal activities and drugs.

For us people do really love anonymous thing which we dont really want to disclose ourself to anybody and bitcoin is the answer on this kind of transactions which is indeed and advantage for us users and also to those criminals.I do believe that bitcoin is already being used on illegal stuffs since it was just starting and slowly boomed up and gain popularity which somehow give negative image on it for some people or into governments.

I recently saw an article "Bitcoin used as main currency for computer crime"
The insinuation was that Bitcoin was the currency for crime, but they forgot the term "computer"

Like: Dollar used as main currency for American crime
Or: Euro used as main currency for European crime

As any currency it can and will be used for criminal activities (unfortunately), but it doesn't make it criminal itself - or make it therefor part of the "underworld".

Even the "anonymous" argument hold no stake. Bitcoin is NOT anonymous, but pseudonymous. Dollar and Euro bills are completely anonymous.

The decentralised and untraceable nature of bitcoin makes it a great way for people to conduct criminal activities as it far reduces the risk of them being caught. Let's face it, a large amount of bitcoin transactions are probably somewhat dubious but who cares.

Yes the only reason is that it cannot be traced at all. No one can know the name of the owner of the wallet. Moreover its even impossible to trace the ip from where the btc address is used unless you are a real high level hacker. This is what attracts bad guys.

Not only criminals has benefits for anonymous transaction. It also have same effect on business person that transact huge money. It helps to protect his privacy so that they can never be an easy target for criminals to steal their asset.

Those reasons that were quoted above are few solid reasons for relating bitcoin along with underworld usage. During the early days, bitcoin was much used for illegal transactions, ransom and for gambling. Every activity associated with bitcoin has some negative impact. This slowly diminished and got an value as an investment. Now what's happening is the gradual growth.

I agree. In the discussion on another recent thread 'Bitcoin Are Now Used in Crimes' it's also worth noting how the misconception go as far as associating Bitcoin with ilegal practices while forgetting that in the real world all currencies in history have been used for ilegal practices, it's a trait about all currencies, not just Bitcoin or cryptocurrencies.

Bitcoin is only used 1% of the population. Do you think that all bitcoin users terrorists? I'm sure that among the other 99% of people terrorists anymore and they use Fiat. Talk about what crypto-currencies are used for illicit purposes is a fake. It spread to the government in order to mentally prepare the people to fight against the crypto economy.

This is an accusation base of the bitcoin haters. Also big companies and the leaders of the centralized world like to blame bitcoin with this arguments. This is not weird, they try to defend themselves against a strong bitcoin.

Its because the usage of bitcoin when it hit popular news in early 2014 was restricted majorly to the silk road and such sites. It was only after that a lot of vendors started accepting it. Because of its anonymity and ease of transactions, it had become the currency of choice for antisocial elements, and governments still fear that even today.
Plus when anyone from these kind of sites is arrested, they generally confess to the police that they were received their payments in bitcoin. That gets in the news and creates this bad rap.

It probably dates back to the Silk Road and the fact that for most people Bitcoin and crypto currencies are synonymous. Most people I know are pretty surprised to hear that there are other "Alt Coins" etc.

I think it will be very hard to shake that reputation

It is associated with underworld activities because you can't really know. or atleast know easily, from where and to where the money moves. You only know some addresses that has no other link whatsoever. So this makes it perfect for the hackers and guys who want to transact llegally. But the truth is, this happens even before BTC was created, so it's something that the whole financial structure should study and solve. It's not a problem for BTC, this one!

I think only those people can say that who have some conflict with bitcoin, otherwise there is no such clues that can proof that terrorist have any association with bitcoin. I think that in present time bitcoin is the only source through which people are earning a very clear and legal money, that even we cannot expect from our day job.

Bitcoin is associated with underworld because some feature of bitcoin like users are keeps anonymous when they transact things or any services just to satisfy the needs of individual. Transacting huge amounts of money in very efficient way, which makes criminal show interest to dig in. because they find themselves secure since government has nothing do, with counter measures to manipulate btc in the society.

It is associated to everybody, no one owns the bitcoin as they can use it as long as they want for any purposes even using it in the blackmarket or the underworld because bitcoin is anonymous that no indication of personal information can be found in your every transaction, bitcoin can be use by the criminals and bad guys as long as it covers their identity over the transaction.

We don't really know whether it's connected with that world or not but there are many chances of happening that as bitcoin is simply decentralised. Just imagine no one to ask you question about your transaction, no will ask how much money you have got and no one will question from where that money came!


So that's like black hole for the criminal shit and they can just travel through it without anyone's notice in first place and thus fulfilling there all needs. There is just no system which track down the activity for illegalness as long as it's been under surveillance since long time.  It agian who knows the possibility as multiple addresses can be made for single person on multiple wallets and much more. Now that's crazy.

I have noticed one thing. In this world, the invention and new technology reaches the bad people faster than the good innocent common masses. It is very true because evil minds are always searching for gadgets that can ease their illegal activities. Bitcoin is a great creation and for years, criminals have been misusing it but now I see more common people investing in it which is a good news.

Because a lot of people want to earn it for free by stealing it from people who earned it the hard way also people want to do that because coins are worth a lot especially bitcoin which is at a price of $4k.

I think the reason is that bitcoin has no physical existence and most of the people think that when the investment reach to a very high level they will ban or block the wallets of all the people and the investors will lose their money. On the other hand most people think that underworld has invested a huge amount in bitcoin due to which the price of bitcoin grew very high and one day they will withdraw all their investment and the rest will have to face decrease in price.

It has no legal framework, it is international, it is almost untraceable

I think because bitcoin is easy to transact and no other bank or organization is monitoring the situation so yes the bad guys might be interested in this

Bitcoin offers anonymity so it is pretty much a playground for criminals as crimes would only be punishable if the person is known and has been caught in the act. Considering the fact that many altcoins far beat bitcoin in terms of anonymity, what makes criminals flock to it is it's value.