Bitcoin Forum

Bitcoin is a decentralized currency that is transparent and secure. With the rise of bitcoin and blockchain technology there are lots of opportunities and benefits that the society can acquire. Little did we know that with the rise of this technology there are some scumbags who took advantage of one of its features which is anonymity, purchasing illegal stuffs online and even laundering money using bitcoin.

I bumped into an article awhile ago and I guess it's worth to share.

A Romanian City Hall was hacked and the hackers are demanding bitcoin as ransom.

You can read more in here. https://coindoo.com/romanian-city-hall-hackers-want-ransom-to-be-paid-using-btc/

These kinds of acts are giving bitcoin a bad name. We are moving forward to a digital world and whether we like it or not, we'll be using crypto as means of payment when doing transactions online in the near future.

Will hacking incidents increase as well as we progress with this digital currency? Is there a way that we can catch these guys given the anonymity of bitcoin? Do regulations solve this kinds of issues of anonymity? Share me your thoughts!

well bitcoin is no anonymous! and whoever says it is, they are very misled.

as for this news, why are you focusing on the negative? the important thing is that for every negative case that you can find in the news there are hundreds of positive usage in the real world but the news isn't interested in any of them. they just want to publish something hot, it may not even be true most of the times.

As long as you're not providing any personal identifying information then its totally anonymous. You may know the address but the people behind holding that particular address is totally unknown.
If a good mixing service is used then the BTC would be totally untraceable. 


Sorry if you find it negative, I don't intend to spread such negativity in the forum. Peace! ;)

The word "Anonymity" is what actually scares government when you talk $Bitcoin! If you can't put a face to a transaction or a person it means there is room for so much negativity! Anonymity in $Bitcoin may  mean well from the side of $atoshi who began $Bitcoin. But trust man; he explores the bad in every good thing you hand down to him! There are times in everyone's life when privacy is most needed even governments around the world don't deny this! But what you do with your privacy when it is granted you is one reason why anonymity has become an issue!

Bitcoin anonymity is a major aid for the numerous number of scam and hacking we witness nowadays. That is why some people are interested in cryptocurrency regulations, though some people argue that regulations will hinder decentralization but they believe that it will put this financial crisis to check.

I don't think hacking incidents will increase solely because of Bitcoin's pseudonymity. There are a few ways to track criminals, and these have been put into practice a number of times -- one of the reasons why criminal activity on Bitcoin is decreasing:

https://www.cnbc.com/2017/08/29/dark-web-finds-bitcoin-increasingly-more-of-a-problem-than-a-help-tries-other-digital-currencies.html

So yeah, I don't really think it's a downside in the least. It's not necessarily an upside for bad actors either.

You know, I cannot think of one technology where scumbags did not misuse it for scams and illegal activities. Take the telephone as an example. We use it every day for "legal" uses, but some scumbags use it to cheat people out of their money and to run large drug cartels. <Communication with clients and also between the drug runners and the suppliers>

Can we blame the telephone for the scumbags actions? Nope, because it was not designed to help criminals. The criminals just found new illegal uses for it and this is the same with all new technologies.  >:(

I mean I get what you are saying! Anonymity has been the selling and failing point for bitcoin. Normal people like being anonymous, governments don't.But in humble my opinion ,bitcoin is not really anonymous! You might not use you real name,but you are using addresses. That's your identity,no? Once it is linked to you, there is no anonymity left!
Also,even if you are using different addresses for every transaction,but have the same wallet,it could be traced back to you.
Moreover,more often than not,fiat is demanded as ransom. Why no negativity towards the paper money then?
Its just really depends on how you want to look at it. There are quite a lot of people who want to put bitcoin under the bus and will do that no matter what because their interest don't align with it!
Simple as that.

From what I know, many people take advantage of the bitcoin's anonymity for bad objective such as crime, money laundering..The operation of deep web depend on the bitcoin's anonymity , deep web is never dead so bitcoin is never dead of course.

Pseudo-anonymous would be, IMO, the most fitting description for bitcoin since it is only anonymous at a certain point, though it does retain its anonymity with certain conditions as well, just like what you have said regarding mixers and other methods to obfuscate the taints. Due to this, scammers and money launderers are not afraid on using bitcoin for their schemes, but that doesn't mean that scams and the likes cannot be prevented. There are scammers since there are people who are too naive to be a victim. It's not the feature that is at fault, but most of the time the users' ignorance.

everything comes with 2 sides, positive and negative, it's up to you which side you want to believe in.

Some people are just so smart to use technologies to scam. So i think bitcoin scamming is not an isolated case.  Bad guys are always waiting for opportunities to do evil.

I hope those criminals will one day be put to jail. I just wish that forthcoming techologies will all be safe and scam-free.

I think with the emergence of this digital crypto world its to be expected that hackers and scams become more common because people can be gullible.
For the reason of anonymity are governments trying to bring about some sort of regulation which if minimal may actually benefit the community.

you can not call that a downside in my opinion. as others said bitcoin is Pseudoanonymous but even if it was 100% not anonymous then it still would have happened the same way. the scammers will always find a way. how do you think they were scamming others all these years prior to bitcoin? they were using banks and other money transfer methods!

I do not think it is a downside of bitcoin. I think it is the advantage of bitcoin. This would allow bitcoin to grow without government control and imposing taxes.

Well cash has much more anonymity and nobody is complaining about it?

All new technologies found their scammers. Bitcoin and other cryptocurrencies are just very attractive for scammers atm, because of the ease of it and the lack of regulators. I personally hope for the day, when people go to jail because of price manipulation or ICO scams etc. Tether might be a good example atm.

I know that the bitcoin holder is anonymous, but I think that is why many people are using KYC system for them to identify the user of bitcoin. This is one of the ways to identify the user identity.

But of course, we can't really detect it if they use a coin shuffle website. And I really discouraged this kind of website because if we get hack we have no way of finding who is was.

Bitcoin isn't as anonymous as most people think that it is, that's why there are a lot of people and companies who are currently offering the likes of bitcoin mixing services so that no one would be able to track their transactions.

Hope you guys read the article first before commenting for you to be able to reply to the topic appropriately.

Although bitcoin is the best cryptocurrency out there, it also has its flaws. Even with blockchain technology, there will still be hackers and scammers that will exist. Then again, we have to keep in mind that this happens in traditional banking, as well. All we have to do is be careful so we will not fall into one of their traps.

The media will always find the 1 negative situation in 100 positive scenarios, as for whatever reason people reactive when they see negative news

We have to accept this when Bitcoin has an anonymous function. Certainly there will be bad guys taking advantage of the lure or money laundering. Therefore, it hates Bitcoin and does not legitimize it. I think if Bitcoin wants to exist legally, it must be disabled anonymously. A public transaction requires the face of two partners. This will make Bitcoin clean.

Bitcoin is getting popular as it not controlled by any third party like  government. But every technology has both positive and negative sides. We need to use technology for the betterment of world instead of scamming.

cryptocurrency provides great opportunities, but as in any other technology can not drive out of it those people. who want to cheat

The downside of bitcoin anonymity is that you do not know what you are dealing with. Maybe big companies or maybe criminals. This is a chance for the bad guys to launder money. Many mafia organizations participate in bitcoin to make a profit. Anonymous bitcoins will be the chance for bad guys to get rich.

There is always a positive and negative side of Bitcoin's anonymity. And if the cryptocurrency transactions or bitcoin transactions will also be like the transactions in fiat money, it is just going to be the same. There is a lot of money in bitcoin, but still, because there is no regulation in some parts of the globe, you have to be really careful on which address you send your tokens.

Bitcoin is not compeletely focused on anonymity, it can be traced when it is converted to fiat with the help of regulations. It may serve as a tool for cybercriminals but they will have a problem spending it as regulations are already being arranged.

Well the hacking incidents really make bitcoin reputation go red, alot of people become misunderstood bitcoin after it keep on being used for bad things, but it is not bitcoin fault at all, the regulation won't stop hacker from doing their things, even fiat that centralised still being used for ransom, bitcoin is not completely anonymous, but its harder to track compare to fiat

Well we should blame the people who are taking advantage of the situation and not the technology. But yeah, bitcoin was designed to be a micro-payment scheme and soon we might see its usage in the foreseeable future.


Definitely, hacking will increased as we move forwards. Hackers or criminals will always be ahead of the game. They can be tracked thru blockchain but its going to be difficult if they use tumbling services. But we have companies like https://www.chainalysis.com/ to help us out (but with a fee of course).

for me it's not just crypto and bitcoin that are criminal activities, before the emergence of crypro all currencies have done that and made a ransom for extortion, money laundering and more.
this is exposure to excessive media and we think positively and optimistically in crypto to give more benefits and benefits to everyone

Bitcoin is not really anonymous, it needs to be cashed out somewhere and the blockchain is a public ledger. KYC is popping up everywhere, it is now difficult to buy btc without it. Who knows if it will be required globally, but i doubt it

I agree with you. but it is a risk that cannot be controlled. scammer. criminals always find a better way to make destruction. but I want to know. how do you avoid scammers?

There is very little anonymity on Btc and you should know that, it is posible to track transactions.
People have this misconception about btc and it is hurting btc.

Well, there should be a post saying, downside of cash. Because most illegal transactions happen with cash.

bad guys will find a way to be invisible, with or without bitcoins. And anonymity will always be in demand among the bad guys and the good ones.

I gotta admit that there really is a downside when having the ability to be anonymous when on making transactions in BTC, and this is why criminals and just simply bad people tend to settle their payments through BTC,  but these are all just negativities, what about tackling the positive things when you have anonymity, first of all is your protection, this is a major factor and I don't want those crybabies to be one-sided when we are talking about anonmyity in BITCOIN.