Why criminals prefer cash (Fiat) on top of crypto?

[bitzizzix]

Simply, they have no knowledge yet on how to store value in cryptocurrency. I think if they have some options in keeping their stole money, they probably choose to store it in anonymous and secured place. We just be thankful because cryptocurrency is not yet the main wallet that theft and other criminals use when they want to store. But for sure, there are criminals that are hiding their money in cryptocurrency specially those who are in government position that is corrupt.

This is one of the right reasons, because for beginners it is quite difficult to save their money in the form of cryptocurrencies, especially those who do not have the basic knowledge for it.
But if they do that, I think it will give crypto itself a bad image. Yes, we know that cryptocurrencies are currently still being rejected by some people and even countries.

How do we know that all criminals are beginner and what about the criminal that attacks online. They have a knowledge in crypto already but if they are completely new to it they can still be able to learn it. Even kids now knows how to operate a crypto and if they do it, that wont really create a bad impact on the reputation of crypto. We can just assume that criminals are now using crypto because crypto is now popular.

Ever since before we always have news about hacks and thefts but cryptos and crypto supporters are still here. Nothing have changed to them and if there are countries or people that reject crypto, that was because of other reasons.

But most criminals are generally not tech savvy and they just want fiat or valuable items that can make money because it is very easy to use and quick to spend, and most criminals only have the capital of courage and carelessness.
and crypto criminals must have more expertise in technology to be able to hack it, and crypto criminals are few and not as many as fiat criminals because becoming a fiat criminal is easier and doesn't take long to do.
except in this world everything uses crypto then there will be no fiat criminals, because fiat is still valuable and used and easier then all criminals will choose fiat over crypto and it is also safer.

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[Skinny48]

Tech savvy or not you can't always be anonymous when doing crypto transactions you will eventually get yourself screwed on day, fiat is a safer tool for illegal payment or activities not crypto.

[dunfida]

Tech savvy or not you can't always be anonymous when doing crypto transactions you will eventually get yourself screwed on day, fiat is a safer tool for illegal payment or activities not crypto.

A little bit reasonable and you do have some point its neither fiat or crypto then those criminals would still be having the same mindset when it comes on doing illegal transactions which neither they would be using both

or neither of the two.If they do prefer cash then so be it but for sure they've been using up crypto on other purposes too which anonymity and decentralization does really have those advantages
but its not really that something to boast off since this is the things on where government do really focus out the most because of its features which make things even more harder.

[Fortify]

As of late, crypto has become extremely popular due to the negative effects of COVID-19 in the mainstream economy. People are starting to consider crypto to be a safe-haven against the traditional monetary system empowered by banks worldwide. Yet, the vast majority still relies on Fiat for day-to-day transactions because of its price stability and widespread acceptance in the mainstream world.

With the advent of privacy coins, people can enjoy true financial freedom like never before. Privacy coins can become attractive tools for illicit activities because of their untraceable blockchain ledger. Despite all of the benefits privacy coins provide, criminals still rely on Fiat for all of their nefarious actions. I'm starting to wonder why, since Fiat (physical cash) is not as anonymous as one thought it would be. Privacy coins are truly anonymous (especially those that are private by default like Monero and Grin), as there is no central authority behind them. Maybe criminals prefer Fiat because of its high level of adoption in the mainstream world? Or maybe because Fiat has an easier learning curve than crypto?

If by any means criminals start adopting crypto in mass (especially privacy coins), we could expect a full government crackdown on the entire industry. Which is why I think it's best for criminals to continue using Fiat for the sake of the crypto/Blockchain industry's growth worldwide. But we'll never know what will happen in the future. Thoughts?

We're talking about different classes of criminals when discussing fiat and cryptocurrency transactions. The local drug dealer isn't inclined to accept cryptocurrency because they are running a cash business - they buy in cash, they receive cash and they restock in cash. Besides that, their customer base is unlikely to be super sophisticated to use Bitcoin, or at least enough customers don't do it to make it worth additional hassle. The type of criminals you see talked about in the news and referring to crypto are large scale - randomware attackers, money launderers and criminal syndicates that generally just need to move money across borders with ease.

[Abiky]

We're talking about different classes of criminals when discussing fiat and cryptocurrency transactions. The local drug dealer isn't inclined to accept cryptocurrency because they are running a cash business - they buy in cash, they receive cash and they restock in cash. Besides that, their customer base is unlikely to be super sophisticated to use Bitcoin, or at least enough customers don't do it to make it worth additional hassle. The type of criminals you see talked about in the news and referring to crypto are large scale - randomware attackers, money launderers and criminal syndicates that generally just need to move money across borders with ease.

Drug dealers need something tangible that can be used offline in the easiest way possible. Cash fits the bill nicely due to its wide acceptance by business and merchants alike. I doubt drug dealers would want to get into something as transparent and volatile as Bitcoin. Not to mention, it requires some level of technical knowledge to get used to. With Fiat (cash) you just hand in the money to the merchant and that's it.

For these and many other reasons, cryptocurrencies like Bitcoin and Ethereum won't attract many criminals into them. Only hackers and scammers will find crypto useful for their own needs. As long as the majority uses crypto the right way, there should be nothing to worry about. Just my thoughts

[KennyR]

The most important thing for which criminals prefer cash on top of cryptocurrency is to make the funds legitimate. For some time period they'll be criminals, and rest of the time these people will be into different kinds of legitimate businesses. This gives them ease of investing and withdraw it as legitimate money. The same isn't possible with cryptocurrencies.

Most of the cyber criminals prefer cryptocurrency as there is no intermediaries. Because, if there is some intermediary the funds can be frozen. Even with cryptocurrency these days it is possible to track the stolen funds. Recently the bitfinex thieves were arrested in similar case after years.

[Abiky]

Maybe because it is very complex to convert the money from crypto and it requires KYC where personal details are required before getting the money.

So they prefer the traditional thing and besides not all of them are capable of hijacking cryptocurrency.

It's obvious that it's easy for criminals to use the traditional which has easier transaction processes.

Yes. But what if I told you it's possible to get access to crypto without KYC? Criminals can simply use a peer-to-peer trading platform or a decentralized exchange to turn their cash into crypto for peace of mind. Of course, this requires some level of technical knowledge. But if criminals are willing to learn, I don't see why it won't happen anytime soon.

The main issue is not access, but rather price volatility and lack of merchant acceptance. Without a stable cryptocurrency price, I don't see crypto replacing cash (Fiat) anytime soon. It's this level of convenience which makes Fiat a true winner for illegal transactions. If crypto was stable and widely accepted by merchants and businesses alike, things would've been different. But that's not the case, so criminals using crypto on top of Fiat is only a dream. I'm fine with that as long as crypto's legitimate use cases are expanded. Once illegal activity is reduced to a minimum, crypto will flourish like never before. Just my thoughts

[Dunamisx]

Since ever the introduction of bitcoin in 2009, the rate of criminality involved in bitcoin is incomparable to fiat and i so much believe that security and privacy in bitcoin makes it difficult and a thing of threat to any criminality element to het involved, fiat act of theft can be carried out in various easy means like physical assault and the likes, while the major cause of crypto own majorly is as a result of our personal carelessness and lack of know how as a week point.

[Roidz]

Maybe because it is very complex to convert the money from crypto and it requires KYC where personal details are required before getting the money.

So they prefer the traditional thing and besides not all of them are capable of hijacking cryptocurrency.

It's obvious that it's easy for criminals to use the traditional which has easier transaction processes.

I hope that criminals will not shift their targets to crypto, because if that happens, of course there will be many people who will become the targets of their crimes later, indeed now many criminals (hackers) are starting to target to steal from the exchange but maybe only a few people are able to do it this, because it requires computer programming skills which may be above average for some people, but for traditional criminals of course fiat money can be an easy alternative for them and I think they also don't want to take the risk of targeting other people crypto assets because it is complicated process.

[Mometaskers]

Sooner or later you'd have to convert that ill-gotten crypto to fiat and that's when you become most vulnerable. And then there's the issue of what if the price suddenly collapse. What, you gonna halt operations and wait for it to bounce back? Unless you're transacting cross-borders, you're probably just really better off using fiat. It's tried and tested! Even government swears of its usefulness

Fiat is basically invisible if it don't go through banks. Just set up a small business that accept cash payments and you're done! Sure might have to pay taxes on that (can't beat the biggest criminal of course) but for all intents and purposes, your money is "clean".

[Abiky]

Sooner or later you'd have to convert that ill-gotten crypto to fiat and that's when you become most vulnerable. And then there's the issue of what if the price suddenly collapse. What, you gonna halt operations and wait for it to bounce back? Unless you're transacting cross-borders, you're probably just really better off using fiat. It's tried and tested! Even government swears of its usefulness

Fiat is basically invisible if it don't go through banks. Just set up a small business that accept cash payments and you're done! Sure might have to pay taxes on that (can't beat the biggest criminal of course) but for all intents and purposes, your money is "clean".

Converting crypto to Fiat (cash) wouldn't be necessary if there's a decent number of merchants and businesses accepting crypto as payment method. Of course, there's the problem of price volatility. But that can easily be solved via the use of decentralized stablecoins like DAI and USDJ. The reason why criminals are still using Fiat it's because of its ease-of-use. Not to mention, you can use Fiat (cash) when there's no Internet access whatsoever.

I'd prefer that criminals stay away from crypto as possible, so the industry can come out clean in the long-run. Otherwise, governments will try to stop crypto by making it "illegal". We're living in uncertain times, so anything can be expected in the future. As long as the number of people using crypto legitimately succeeds those who don't, there should be nothing to worry about. Just my thoughts

[Wolfencloud]

Actually, a lot of criminals also uses crypto for their payment especially in the black market. Why? Because it is hard for the authority to track all the transactions, and if they do, how will they locate the criminals? having fiat money is more risky because the authorities have a money that they call "Marked money" where if they saw it, it means that the person who is using it is a criminal or maybe they used the mark money for the payment. But before that happens, usually the criminals will get caught.

In my opinion, it depends on what kind of transaction they were doing. If it is in an online black market, they will use crypto, but if it is a transaction between two party, they will use fiat money.

[sayaya17]

Sooner or later you'd have to convert that ill-gotten crypto to fiat and that's when you become most vulnerable. And then there's the issue of what if the price suddenly collapse. What, you gonna halt operations and wait for it to bounce back? Unless you're transacting cross-borders, you're probably just really better off using fiat. It's tried and tested! Even government swears of its usefulness

Fiat is basically invisible if it don't go through banks. Just set up a small business that accept cash payments and you're done! Sure might have to pay taxes on that (can't beat the biggest criminal of course) but for all intents and purposes, your money is "clean".

Converting crypto to Fiat (cash) wouldn't be necessary if there's a decent number of merchants and businesses accepting crypto as payment method. Of course, there's the problem of price volatility. But that can easily be solved via the use of decentralized stablecoins like DAI and USDJ. The reason why criminals are still using Fiat it's because of its ease-of-use. Not to mention, you can use Fiat (cash) when there's no Internet access whatsoever.

I'd prefer that criminals stay away from crypto as possible, so the industry can come out clean in the long-run. Otherwise, governments will try to stop crypto by making it "illegal". We're living in uncertain times, so anything can be expected in the future. As long as the number of people using crypto legitimately succeeds those who don't, there should be nothing to worry about. Just my thoughts

Fiat is still in demand by criminals because it is easy to use, and easier to spend. Moreover, there are still quite a lot of people who don't understand
how to use crypto, it's too complicated for some people to use crypto, while fiat is used by everyone in the world since childhood. So it's very natural
that many criminals have chosen to use fiat until now, and I don't understand if there are politicians who say crypto is widely used for illegal activities.
Even though it is clear that fiat has been used by criminals for a long time, so there should be more criminals who use fiat.

We as part of the crypto community definitely want crypto to be legalized by all countries in the world, so it's a bit advantageous to know that
criminals use fiat more than crypto. But the problem is that the government's view of crypto is already bad, so for now it is quite difficult to expect
all countries to legalize crypto, because there must be some countries that decide to ban the use of crypto. Perhaps this is due to the lack of
knowledge that some state leaders have, even some state leaders have misleading information about crypto. But over time, many countries will
realize the importance of legalizing cryptocurrencies.

[Broyleso]

Many people don't understand cryptocurrencies, and if criminals want to use them, they need to know more about them to use them, so it's easier to use fiat currencies than bitcoin or other cryptocurrencies.

[bakasabo]

Fiat is still less traceable than cryptocurrency. I've read that even mixers dont give 100% guarantee that you wont be identified. Deal in cash are quicker to make. Just give a stack of money and that is it. But if you crypto, you still a device to check that you were paid, need to find a way to turn crypto into more local currency. It is mentally better to feel cash in hands, than have a paper with privatekey in the pocket, or keep hardware wallet in hands.

[LUCKMCFLY]

As I have said before, FIAT money is safe, it is something that you have there and you know that you count on it, that the only way it will lose value is if there is a world fall or crash or if its inflation runs more than 10% which it is a very difficult scenario to occur but not impossible, this makes it something safe for a criminal mind, which, we must not forget that many criminals are very intelligent and know the potential of cryptocurrencies and that they can do a whole wash through crypto through the deep web or a mixer, but in the same way a lot of knowledge and hard experience is needed, but it is something that cannot be ruled out, but according to this they are currently still more inclined towards fiat money.

[Abiky]

Fiat is still less traceable than cryptocurrency. I've read that even mixers dont give 100% guarantee that you wont be identified. Deal in cash are quicker to make. Just give a stack of money and that is it. But if you crypto, you still a device to check that you were paid, need to find a way to turn crypto into more local currency. It is mentally better to feel cash in hands, than have a paper with privatekey in the pocket, or keep hardware wallet in hands.

I understand Fiat is much easier to use than crypto, but it's biggest downside is that it's tied to the corrupt banking system. Inflation will keep soaring, effectively making Fiat worthless in the long run. That's not the case with crypto these days. With crypto, you truly are your own bank. There's no middleman, no fear of losing your purchasing power over time due to constant money printing, and  you get complete anonymity in return (depending on the type of cryptocurrency used).

If criminals learned about the benefits of crypto, they would've ditched Fiat already. The reason why they haven't done so, it's because not many merchants and businesses accept crypto as payment method. Also, crypto prices are widely unstable making it unsuitable as digital cash. Knowing that this has been the case for quite a few years, it's unlikely criminals will switch to crypto anytime soon. I'm fine with that as long as crypto's legitimate use cases are expanded. With most people using crypto responsibly, governments will adopt Blockchain tech with open arms. Just my thoughts