Bitcoin: 'Blood Diamonds' Of The Digital Era

[alyssa85]

https://www.forbes.com/sites/jasonbloomberg/2017/03/28/bitcoin-blood-diamonds-of-the-digital-era/#72915253492a

Bitcoin has long been the transaction currency of choice for drug dealers and extortionists, but this month, the IRS has upped the game. Just as tax evasion finally took down Al Capone, now the IRS is looking for tax evaders and other tax cheats who have been using Bitcoin in an attempt to hide their tracks.

The IRS recently subpoenaed customer records from Coinbase, a leading Bitcoin exchange. However, the subpoena is but the latest skirmish in a years-long war against criminals who have been leveraging Bitcoin for a wide variety of nefarious purposes.

The specifics of the IRS subpoena, however, make one thing clear: the majority of Americans who trade in Bitcoin are likely breaking the law.

Coupled with Bitcoin’s popularity among ransomware extortionists and all manner of other cybercriminals, we must now face a chilling realization: the underlying value of Bitcoin really has little if nothing to do with its artificial scarcity or popularity as a medium of speculation.

On the contrary – the only reason Bitcoin has value to anyone is because of the underlying value as a medium of exchange for lawbreakers. If we could flip a switch and eliminate all illegal uses of Bitcoin, there would be nothing left of the cybercurrency.

[RodeoX]

https://www.forbes.com/sites/jasonbloomberg/2017/03/28/bitcoin-blood-diamonds-of-the-digital-era/#72915253492a

The specifics of the IRS subpoena, however, make one thing clear: the majority of Americans who trade in Bitcoin are likely breaking the law.

Hmm. I see absolutely nothing to support this statement. So do they mean because they are cheating on their taxes? That is a completely different topic. Those people are stealing and should be charged.

[gentlemand]

Seems like utter bilge dating from around 2012. I'll carry on being unfashionable and use it for things that aren't nefarious.

[buwaytress]

Oh the outrage, the eloquent outrage of false journalists pandering to sensationalist hype that's at least four years old. If only proper media with accredited backgrounds and reputable credentials would write about bitcoin. Oh, wait. Forbes.

Can't blame the journalist for writing what the editors think. For a moment when I read it I thought I was reading about the dollar.

[Arcteryx]

This would make it look as if bitcoins is still the silk road's offspring. Which is still engulfed in that illegal world or drugs and guns.
This kind of publicity will only hurt the bitcoin movement and not help it to come into the real economic business world of where fiat is still viewed as the global currency within their respective countries.

[alyssa85]

https://www.forbes.com/sites/jasonbloomberg/2017/03/28/bitcoin-blood-diamonds-of-the-digital-era/#72915253492a

The specifics of the IRS subpoena, however, make one thing clear: the majority of Americans who trade in Bitcoin are likely breaking the law.

Hmm. I see absolutely nothing to support this statement. So do they mean because they are cheating on their taxes? That is a completely different topic. Those people are stealing and should be charged.

Yeah. read the article (I didn't want to copy paste the entire thing). But the long and short of it is that they did a search for bitcoin trades declared in tax returns, and found very few, compared to the number of trades on CoinBase.

So they've essentially supoenaed the whole of Coinbase to check for trades that haven't been declared.

[Red-Apple]

i completely disagree with all of it. the article is full of FUD for the most part and it seems like an attack on bitcoin rather than being a well thought text!

and using the term "blood diamond" for it is ridiculous in my opinion, there are some masochists who are self harming and drawing their own blood but those who aren't really getting caught in the drama of bitcoin will never even see it. and they continue using bitcoin happily.

[elite3000]

more FUD that only wants to be sensationalist

the fail starts on the title, as far I know there are no civil wars that are financed with Bitcoin or fight because of Bitcoin, so I don't think the comparison is in any way appropriate

[BillyBobZorton]

People can use bitcoins for whatever they want just like they can use cash. This is just more FUD from the Powers That Be, that is why we must keep bitcoin decentralized, in other words reject BU or else nodes will be centralized and controlled.

[masterzino]

Just another FUD from mainstream medias! Bitcoin, dollars or beans, drug/diamond cartels will always find a currency to exchange their stock of. It's just like the marijuana and 30s-50s vs Dupont's Cotton.

[Kprawn]

Oh ffs, I thought we are past the whole " Bitcoin is only used by criminals " phase and here we go again.  .... Tell me something, why would

someone signup to Coinbase and go through all the KYC/AML shit to identify himself and then use that account to commit a crime? These idiots

are shilling for governments against Bitcoin and they not even using logic reasoning to do it.  Total FUD!

[Carlton Banks]

"Your laws are minimal
And you won't even think about
looking for the real criminal" KRS-1, Sound of the Police


Slave language, from corporate slaves. Quelle surprise.


I want real capitalism, where I can vote for regular people by giving them real power: money.


Fuck this charade, where the price of goods is set by a tiny amount of overly rich pencil pushers at the stock exchange, and where the price of money is set by the central banks

(and where regular everyday wage&tax slaves act like the police towards people they should be respecting, like this idiot writing for Forbes, as if the corporate tycoons they write glowing pieces about pay their taxes, like I say, money is real power).

[philiveyjr]

Oh ffs, I thought we are past the whole " Bitcoin is only used by criminals " phase and here we go again.  .... Tell me something, why would

someone signup to Coinbase and go through all the KYC/AML shit to identify himself and then use that account to commit a crime? These idiots

are shilling for governments against Bitcoin and they not even using logic reasoning to do it.  Total FUD!

Its not over mate, We have to still fight against the negative criticism from the mainstream media. Just the other day in my country, The leading newspaper had the headlines that Bitcoin is illegal here. When I read the news story completely, it just said that the government is warning people to use Bitcoins at their own risk and that it is not actually illegal. I was like WTF is that headline?  

[Przemax]

Basicly you need to read the opposite of what that kind of paid shills are writing. They are writing the same old story that they keep on digging out from the long rotten grave. Everyone knows that and noone is interested, but the message is simple - bitcoin bad, don't touch it. You can be sure someone is touching it and slowly accumulating the bitcoins.

Manipulations to drop the price to oblivion failed so they make stories like that from the article to make an atmosphere in which they can buy the commodity that has proven to be undropable. They can buy that commodity, which is the bitcoin in this case, without increasing the price too early and too much.

[Yakamoto]

https://www.forbes.com/sites/jasonbloomberg/2017/03/28/bitcoin-blood-diamonds-of-the-digital-era/#72915253492a

<snip>

On the contrary – the only reason Bitcoin has value to anyone is because of the underlying value as a medium of exchange for lawbreakers. If we could flip a switch and eliminate all illegal uses of Bitcoin, there would be nothing left of the cybercurrency.

Now that's a ballsy statement.

I'm curious if these guys have gotten any information from Steam (and by extension Bitpay) about how successful the Bitcoin integration on Steam is. If anything, I would say that a lot of the illegal uses of Bitcoin actually hurt the value since there can be a frantic sell-off of the illicit goods, and just buying Bitcoin to pay ransomware creators isn't that much of a portion of the market to my knowledge.

[Hydrogen]

https://www.forbes.com/sites/jasonbloomberg/2017/03/28/bitcoin-blood-diamonds-of-the-digital-era/#72915253492a

Bitcoin has long been the transaction currency of choice for drug dealers and extortionists, but this month, the IRS has upped the game. Just as tax evasion finally took down Al Capone, now the IRS is looking for tax evaders and other tax cheats who have been using Bitcoin in an attempt to hide their tracks.

Its almost like they waited to see if bitcoin unlimited might be successful, before letting loose with the anti btc journalist columns.  

Forbes hasn't had much credibility in years. You'd have to go back at least 2-3+ years to find credible pieces done by them, like this:

HSBC Bank Helped Terrorists, Iran, Mexican Drug Cartels Launder Money, Senate Report Says

A Senate report released ahead of the embargo time revealed that HSBC’s lax anti-money laundering policies allowed Mexican drug money, Iranian terrorist money, and even suspicious Russian money to enter the U.S. and gain access to U.S. dollar liquidity over the last couple of years.

The report, released late on Monday despite a 10 PM embargo time, was prepared by the Permanent Subcommittee on Investigations, and counted with the support of Senators Carl Levin and Tom Coburn.

In a year-long investigation, the Subcommittee found that HSBC violated several rules, exposing the U.S. financial system to “a wide array of money laundering, drug trafficking, and terrorist financing.”  According to the report, HSBC’s Mexican affiliate channeled $7 billion into the U.S. between 2007 and 2008 which possibly included “proceeds from illegal drug sales in the United States.”

https://www.forbes.com/sites/afontevecchia/2012/07/16/hsbc-helped-terrorists-iran-mexican-drug-cartels-launder-money-senate-report-says/

That story is from 2012.

But there is follow up evidence that HSBC bank still launders money for terrorists, russia and drug cartels with no real effort put forth to stop them.

[eternalgloom]

I don't really want to visit Forbes, because I don't agree with their ad policies, their website is just too annoying to visit.
So I'll base my answer of off that quote you provided.

The comparison of Bitcoin to blood diamonds is a bit far fetched, they're just 2 different concepts really.
You could just as easily say that using fiat currency is unethical because large criminal organizations are using fiat as means of exchange.

I also really doubt that the Bitcoin price is driven by it's criminal use, it probably has more to do with people who use it as an investment.

[Dimelord]

Oh ffs, I thought we are past the whole " Bitcoin is only used by criminals " phase and here we go again.  .... Tell me something, why would

someone signup to Coinbase and go through all the KYC/AML shit to identify himself and then use that account to commit a crime? These idiots

are shilling for governments against Bitcoin and they not even using logic reasoning to do it.  Total FUD!

Its not over mate, We have to still fight against the negative criticism from the mainstream media. Just the other day in my country, The leading newspaper had the headlines that Bitcoin is illegal here. When I read the news story completely, it just said that the government is warning people to use Bitcoins at their own risk and that it is not actually illegal. I was like WTF is that headline?  

Just every government wants to criticize bitcoins since they need a valid reason for announcing it illegal.In india,police caught five youngsters who sold drugs and that too in bitcoins.Immediately,government started discussions to announce bitcoin as illegal.Thats why i told,they just need a reason to blame bitcoins.

[antonioa]

Oh ffs, I thought we are past the whole " Bitcoin is only used by criminals " phase and here we go again.  .... Tell me something, why would

someone signup to Coinbase and go through all the KYC/AML shit to identify himself and then use that account to commit a crime? These idiots

are shilling for governments against Bitcoin and they not even using logic reasoning to do it.  Total FUD!

Its not over mate, We have to still fight against the negative criticism from the mainstream media. Just the other day in my country, The leading newspaper had the headlines that Bitcoin is illegal here. When I read the news story completely, it just said that the government is warning people to use Bitcoins at their own risk and that it is not actually illegal. I was like WTF is that headline?  

Just every government wants to criticize bitcoins since they need a valid reason for announcing it illegal.In india,police caught five youngsters who sold drugs and that too in bitcoins.Immediately,government started discussions to announce bitcoin as illegal.Thats why i told,they just need a reason to blame bitcoins.

Yes, I agree with you. The government of some countries is very negative about the crypto currency. Basically it is the government of poor countries. Bitcoin can be dangerous for a weak economy

[unamis76]

Wow great Forbes, what else... Ridiculous sensationalist news, maybe this should be included in that famous "fake news!" list...

"News" like these serve the interest of some, not the interest of informing everyone, they should be ashamed of themselves. "Tax evasion... Of course, because Bitcoin!" is an absurd way of thinking.

Let them have their blinders and move on. The world is either black or white for sensationalist media.