Bitcoin completes value transmission, how to perfectly avoid criminal ？

[caryoscar]

Bitcoin is a double-edged sword. There are advantages and disadvantages. Of course, the advantages outweigh the disadvantages. In the early stage, it is inevitable that Bitcoin will be used for some illegal and criminal activities because of the following convenient conditions.

• Non-sovereignty, free space.
• Decentralized distributed accounting method
• Perfect anonymity, easy account cancellation, new account creation, concealed identity.
• Convenient, fast and without third parties.no border.

It can be said that it provides fertile soil for criminal activities, money laundering, drugs, guns, dark web transactions and so on.

Similarly, Bitcoin is not suitable for these unseen businesses.

• The price of Bitcoin is extremely volatile, and it may be held for a long time in order to have higher returns.
• Bitcoin is banned in many countries, and the network is still very closed, such as China.
• The crypto market, or Bitcoin trading platform, is often attacked by hackers. Of course, some white hats are also staring at your wallet and exchange.

What is your opinion on this issue? How to avoid criminal activities? It is impossible for everyone to abide by the rules like the Bitcoin forum, and a large number of volunteers selflessly pay their own labor to maintain the rules of the game in the forum.

[Kong Hey Pakboy]

Contrary to popular belief, bitcoin is the favorite cryptocurrency of the FBI AML team because it's a pseudonymous meaning that you're only anonymous in the ledger but not when you are spending it.

[NeuroticFish]

Perfect anonymity, easy account cancellation, new account creation, concealed identity.

This topic was discussed so many times you could have searched really before asking.
But you chose to post a long topic and be wrong.
As already said, Bitcoin doesn't have perfect anonymity.

Now, really, use search. And ask around. And research. And learn.

[BlackHatCoiner]

Perfect anonymity, easy account cancellation, new account creation, concealed identity.

It doesn't provide anonymity. Every address and amount can be tracked down. It looks rather pseudonymous to me. It'd be anonymous, if it somehow hid the amounts and the parties (sender & recipient).

It can be said that it provides fertile soil for criminal activities, money laundering, drugs, guns, dark web transactions and so on.

So, it provides what cash do too? Except that it does this dirty job worse due to its transparency? Explain me how you can launder money with Bitcoin since you have to somehow convert them again in fiat. Let's assume that you have $1m and you want to launder them urgently! Show me your steps to prevent from getting caught using Bitcoin.

[mk4]

What is your opinion on this issue? How to avoid criminal activities?

You can't avoid criminal activities, just as how the USD hasn't really prevented criminal activity. The authorities simply has to find/pursue the crooks through other means than through the currency.

It is impossible for everyone to abide by the rules like the Bitcoin forum, and a large number of volunteers selflessly pay their own labor to maintain the rules of the game in the forum.

One of the main points of Bitcoin is that you can make transactions without anyone's permission.

[ranochigo]

Fiat is arguably far more conducive for money laundering and anonymous as well. You can't trace cash as effectively as you can with Bitcoin.

You really can't expect anyone to take care of your Bitcoins. You're responsible for them and any loss as a result of your negligence is your fault. There is no problem with non-reversibility.

Also to avoid volatility, just trade it for your fiat immediately after the transaction, if you really want.

[avikz]

What is your opinion on this issue? How to avoid criminal activities? It is impossible for everyone to abide by the rules like the Bitcoin forum, and a large number of volunteers selflessly pay their own labor to maintain the rules of the game in the forum.

Frankly speaking, there is no way to avoid criminal activities! The nature of bitcoin is designed in such a way where everyone can get their hands on to it. This is true for other cryptos as well so let's not victimize bitcoin alone. Bitcoin was forever used by the criminals of various statuses and the trend will continue, unfortunately.

The only way to curb this illegal activities is stringent KYC norms. But that again goes against the idea of bitcoin and the whole theory of decentralization. So I really can't see an effective way to  curb on illegal activities while maintaining the idea of bitcoin. We will have to compromise either of one side. But it's interesting to see what other members are thinking.

[o_e_l_e_o]

The only way to curb this illegal activities is stringent KYC norms.

There is no solid evidence that KYC actually prevents illegal activities or money laundering, just as there is no solid evidence that mass surveillance prevents terrorism or crime. It is a fabrication told by governments to justify spying on their citizens and sticking their noses in to your business. With how easy it is to acquire someone else's KYC details, all that stringent KYC achieves is innocent people having their identities stolen and being framed for crimes they didn't commit. All a criminal has to do is create some fake altcoin giveaway or fake airdrop, and they can collect hundreds of KYC documents in a couple of days.

We will have to compromise either of one side.

Every currency in the world is used for some illegal activities. Not only is bitcoin no different, but it shouldn't be different. Either bitcoin is censorship resistant, or it isn't. If you start discriminating against some users, some addresses, some transactions, some bitcoins, then you open the door for discrimination against any bitcoin user, and so bitcoin is no longer bitcoin.

[Charles-Tim]

Perfect anonymity, easy account cancellation, new account creation, concealed identity.

Bitcoin transaction is not anonymous, it is pseudonymity. The blockchain is completely transparent, but you can maintain privacy if you want.

It can be said that it provides fertile soil for criminal activities, money laundering, drugs, guns, dark web transactions and so on.

Why are fiat a fertile soil for criminals? Read this OP as an example. Why are terrorists and bandits demanding for paper fiat (cash)? Criminals still make use of fiat than crypto.

Similarly, Bitcoin is not suitable for these unseen businesses.

How about fiat? They are most suitable.

The price of Bitcoin is extremely volatile, and it may be held for a long time in order to have higher returns.

'May' is an understatement, it will. Just hold and be patient, do not panic during bearish market, all-time-high will be attained.

Bitcoin is banned in many countries, and the network is still very closed, such as China.

As some countries will ban Bitcoin, many others will not. China banned Bitcoin, but Bitcoin remain existing and promising.

What did you mean by close network?

Bitcoin is built with open source codes, miners are not centralized in a way miners are chosen, any person can mine Bitcoin, just get your ASICs to start and make profit. Bitcoin is decentralized and the ledger is opened to the public. So, how is Bitcoin having close network? Running nodes is even voluntarily. Expatiate more on this, but I know you are totally wrong.

The crypto market, or Bitcoin trading platform, is often attacked by hackers. Of course, some white hats are also staring at your wallet and exchange.

You need a lot to know more about. Bitcoin gives freedom, using centralized exchanges and services will not give you freedom and total control. Not you key not you coin. Has any centralized platform generated you private key before or seed phrase? If you are not using reputed noncustododial wallet, then you do not have any excuse. Centralized services hacks is what you are referring to, you can protect yourself while using reputed noncustododial wallet, most especially the hardware wallets which are convenient and store private key offline.

What is your opinion on this issue?

Most of your statements are not right.

How to avoid criminal activities?

Avoid criminals should be your aim, use reputed noncustododial wallet
Avoid malware
Do not store your coins on centralized platforms, store it on noncustododial wallet, Trezor and ledger nano are recommended, or any other offline wallets. Online wallet is not bad, but for low amount of coins while security and safety is maintained.

To know more about security, safety and privacy, check this topic: Good topics on security and privacy

[buwaytress]

I don't think it's Bitcoin's job to avoid crime. Crime chooses, and I would have hoped Silk Road taught the lesson that it really is a poor choice to be used for criminal purposes. Can we stop feeding something that has repeatedly been proven wrong already?

P.S. Hackers aren't interested only in Bitcoin trading platforms, they're interested in easy backdoors, lazy admins, careless managers and generally, just poor security practices. And I think you used white hat wrong?

[avikz]

There is no solid evidence that KYC actually prevents illegal activities or money laundering, just as there is no solid evidence that mass surveillance prevents terrorism or crime. It is a fabrication told by governments to justify spying on their citizens and sticking their noses in to your business. With how easy it is to acquire someone else's KYC details, all that stringent KYC achieves is innocent people having their identities stolen and being framed for crimes they didn't commit. All a criminal has to do is create some fake altcoin giveaway or fake airdrop, and they can collect hundreds of KYC documents in a couple of days.

That's true! There is no solid evidence that kyc norms are effective against money laundering or even terrorism financing. Completely in agreement with your statement. However, it is one prime weapon which can be used to curb illegal activities. But it is very difficult for a decentralized network like bitcoin because there is no way to know who is mining it and from which part of the world. It's simply impossible to have 100% correct information. But stringent kyc can at least discourage few percentage of scammers from using it for their illegal businesses. But kyc goes directly against the idea of bitcoin and that's why scammers will try to obtain other people's kyc to hide their dirty money trail.

[o_e_l_e_o]

That's true! There is no solid evidence that kyc norms are effective against money laundering or even terrorism financing. Completely in agreement with your statement. However, it is one prime weapon which can be used to curb illegal activities.

I don't see how you can agree that KYC is not effective at preventing illegal activities, and then in the next sentence state that KYC is a "prime weapon" against illegal activities. Those two statements are mutually exclusive. If anyone can show me some evidence that KYC reduces money laundering then I'm all ears, but given that fiat banks which have much stricter KYC rules than bitcoin are complicit in laundering trillions of dollars each year, I won't hold my breath. KYC is about surveillance and control, not about preventing crime.

But stringent kyc can at least discourage few percentage of scammers from using it for their illegal businesses.

Any scammer can easily sell bitcoin for fiat, if that's what they want to do, with or without KYC. We've had KYC on all centralized exchanges for years, and yet scammers and hackers continue to use bitcoin, just as they use cash and fiat. KYC is not a deterrent.

[BlackHatCoiner]

However, it is one prime weapon which can be used to curb illegal activities.

That's what they told you to justify their needed control over you. Yes, stating that you, as the government, must be aware of the people's transactions to prevent the society from illegal activity is indeed correct, even though illegal activities such as invading taxes might be good for the economy if its system is corrupted. Do you really believe that money laundering is tackled by KYC that way?

Think critically; don't be a useful idiot.

KYC is about surveillance and control, not about preventing crime.

Well said.

[dificanovi]

maybe that's the advantage of bitcoin over real money, those who commit criminal acts through bitcoin will not be able to track their whereabouts. Sometimes I also think negatively that bitcoin is made by criminals so that they can carry out criminal transactions through bitcoin, and on the other hand I also think positively that good people make bitcoins so that everyone can have additional income from trading, mining and investing.

[pooya87]

There are advantages and disadvantages. In the early stage, it is inevitable that Bitcoin will be used for some illegal and criminal activities

That is not called a "disadvantage". Literary anything you can think of can be used for both legal and illegal activities. Your kitchen knife can be both used to peel fruits and a murder weapon but you never say that is the "disadvantage of kitchen knife"!

It can be said that it provides fertile soil for criminal activities, money laundering, drugs, guns, dark web transactions and so on.

This FUD is actually 8 years old now and comes from the days when the Silk Road crap was all over the news overshadowing everything else bitcoin was providing. It's funny to see how it is being dusted off and presented again!

• Bitcoin is banned in many countries, and the network is still very closed, such as China.

I have no idea what you mean by the network being closed but bitcoin is only banned in 4 or 5 countries out of 195 (2%) that is not called "many".

• The crypto market, or Bitcoin trading platform, is often attacked by hackers. Of course, some white hats are also staring at your wallet and exchange.

This has nothing to do with bitcoin.

[caryoscar]

Perfect anonymity, easy account cancellation, new account creation, concealed identity.

This topic was discussed so many times you could have searched really before asking.
But you chose to post a long topic and be wrong.
As already said, Bitcoin doesn't have perfect anonymity.

Now, really, use search. And ask around. And research. And learn.

I accept your opinion. This is also a great achievement for me in the forum. I am very grateful to you. In the future, I will search first, learn by myself, and then summarize my views.

In fact, after watching everyone’s recovery, another gain is that the fiat currency is more anonymous. Thank you for everyone’s replies.

[Charles-Tim]

In fact, after watching everyone’s recovery, another gain is that the fiat currency is more anonymous. Thank you for everyone’s replies.

Yes, fiat transaction can be anonymous unlike Bitcoin transaction that is not because of the blockchain which is available to the public. Although, while making use of fiat during electronic transfer, it is traceable but fiat transactions are not transparent because no open ledger (like the blockchain) is available to the public but yet in a way the governmental bodies can trace transactions. How will the paper money then be? It is completely anonymous transaction because it can be done in a way no one will know during cash transaction than the two parties involved. That is why terrorists, bandits and kidnappers prefer cash transactions because no footprint left to be traced.

[amishmanish]

--snip--
What is your opinion on this issue? How to avoid criminal activities? It is impossible for everyone to abide by the rules like the Bitcoin forum, and a large number of volunteers selflessly pay their own labor to maintain the rules of the game in the forum.

The opinion on this is settled that you cannot just differentiate Bitcoin and Fiat on the basis of who uses it for criminal activities. These are just talking points for those who don't want to accept Bitcoin and want to either pump their own bags or hope that something they propose will become the next bitcoin.

Another issue similar to this is about energy used by PoW.

Both of these issues are raised time and again to attack Bitcoin because it suits those with the power to print fiat, earn commissions on transactions and just manage money. Bitcoin threatens to make money managers obsolete. People can actually be in control of a sovereign currency that does not need to be backed by a state. The positive potential of this is enormous but nobody wants to talk about that as an option.

While its good that you are contemplating, why not contemplate on how Bitcoin and LN transactions will help a country of six million if all of them have a way to save/ spend money without the need to go to a bank branch and pay commissions/ fees to the bankers. How does financial education and financial literacy make better entrepreneurs and better savers out of people that most consider poor and incapable.

Those are the questions that the volunteer, self-policing group of people here at Bitcoin Forum intend to talk about and spread. It'd be great if you can divert your attentions too. Look forward to hearing your views on this.

[o_e_l_e_o]

maybe that's the advantage of bitcoin over real money, those who commit criminal acts through bitcoin will not be able to track their whereabouts.

You have this backwards. Bitcoin is generally a poor choice for most criminals. If I make a bitcoin transaction, then it is public knowledge that absolutely anyone in the world can look up and examine on a block explorer. If I make a cash transaction, then only me and the person I'm transacting with know about it. Cash is incredibly more private than bitcoin, which is why it remains the preferred option for most illegal activities.

Sometimes I also think negatively that bitcoin is made by criminals so that they can carry out criminal transactions through bitcoin, and on the other hand I also think positively that good people make bitcoins so that everyone can have additional income from trading, mining and investing.

I would wager that no one who is working on the development of bitcoin is doing so that criminals can use it or so that people can make profits from trading. They are working on it so it can continue to progress as a peer to peer, trustless currency. Anything else it is used for is simply a byproduct of that.

[Cling18]

Even fiat if abused will also have its disadvantages. It's also being used in illegal activities by criminals which only means that any currency by any form could possibly be used to commit crimes. Instead of looking at the negative side, I guess it would be better to enjoy the advantages that Bitcoin could offer. It could honestly provide us financial freedom if it will be adopted by most communities in the future.