Why is bitcoin associated to the underworld?

[CriptoIngresos]

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.

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.

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[Coffee135]

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.

[BureauChef]

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?

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.

[atc1-REAL]

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.

[pginvest]

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

[joseafonso123az]

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!

[hurain]

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.

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.

[ongels]

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.

[miyaka26]

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.

[trecore4]

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?

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.

[Tungsten-1]

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.

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 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.

[uniqueen]

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.

[Fireblade]

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.

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.

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.

[Namecom]

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

[slashz9]

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

[Sebas.tian]

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.