Bitcoin adoption and increase in crime rate, how correlated are they?.

[Poker Player]

Just to highlight a paragraph from the article;

The popularity of cryptocurrency in the country has caused an increase in scams and crime using these new assets. Cryptocurrencies, due to their innovative design, can sometimes be more difficult to track than money moved via traditional fiat avenues.
https://news.bitcoin.com/kidnappers-kill-venezuelan-citizen-for-not-paying-ransom-requested-in-bitcoin/

Some positivity here is the article, made it clear that majority of the crimes are still been committed in fiats but still I want us to discuss how an increase in adoption can correlate to increase in crime rate and possibly prevention methods to deploy to combat this trend if it's true.

I don't read the same as you Brainboss, the article says that with these new coins there has been an increase in scams using them but it doesn't say there is an increase in crime because of that. Some of the crime that was done in fiat may have moved to cryptocurrencies, without increasing crime in general. I don't see an article attacking cryptocurrencies.

On the other hand, even if it wanted to establish a correlation it would take a lot more, remember the supposed relationship between people drowning in swimming pools and movies featuring Nicolas Cage:

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[CryptocurencyKing]

Just to note, we ought to ask ourselves; why do people involve themselves in crimes at the first place?

This is what really matters than putting the blame on cryptocurrency. I say this because, if these things (answers to the above questions) are tackled, you can be rest assured the world would be a much better place. Crime is bound to abond where there is corruption, injustice, lack of basic amenities, lack of jobs and the necessary conditions for a fair living. These are just a few of the things that should be looked into other than the so called cryptocurrency adoption.

More of the big crimes committed, that has resulted in the taking of one's life in our world today, especially within the third world countries are done using fiat for a payment media. Bitcoin has got little to do with increased crime rate.

[Lanatsa]

For me, bitcoin itself is neutral. And yes, media need something to attract people so they create news that maybe still hype. We all know fiat is used to crime too, and it is not really booming because it is common thing. But actually i am not agree with media too, why they only give people news when something bad is use bitcoin or maybe bad affect on people who use bitcoin. Like in my country when investment in bitcoin is scam, investment in fiat actually a lot too but not booming, or maybe trader who suicide because lose in trading, there are a lot of people who success in trading but not much appeared in media.

How about on talking about fiat itself on tagging it all along with crime rate or something in correlation to that? Why they would always be mindful about new things and blaming out Bitcoin
on higher or increase rate of crime?

Correlation? Well, on some part I could tell that it is really giving out some part due to anonymity and decentralization which is totally a perfect recipe when it comes to money laundering

but it is really just  right to put up some focus on that part? Government and bullshit media  does really love to focus on things on what they do have in mind.

[andeluna]

Actually even the past years bitcoin are use in lots of crime in other countries thats why its possible to happen that it will increase the crime rate. Bitcoin or other crypto currency getting involved with some crime because they are using it as mode of payment because its untraceable if where or who is the one who sending it to others. Bitcoin used in some illegal activity such as payment to porn site selling drugs etc.

[nicecrypto]

Seems the media has another trick to discourage people from buying into the idea of engaging themselves in the new currency. Read about the Venezuelan incident that resulted to a dead citizen after his family couldn't afford the ransom meant to release him. It also got to my attention of studies showing that there has been an increase in crime rate as the popular cryptocurency (Bitcoin) gained more popularity in the country.

You can argue that this are all just propaganda to discourage the citizens from engaging themselves in bitcoin but still how correlated are crimes to the the adoption of Bitcoin and cryptocurency in general. Do the adoption of Bitcoin truly increase the crime rate in a country with focus to third world countries since we're likely to find more individual with motive to commit crime just to survive especially if they have some advantage over getting caught.

Just to highlight a paragraph from the article;

The popularity of cryptocurrency in the country has caused an increase in scams and crime using these new assets. Cryptocurrencies, due to their innovative design, can sometimes be more difficult to track than money moved via traditional fiat avenues.
https://news.bitcoin.com/kidnappers-kill-venezuelan-citizen-for-not-paying-ransom-requested-in-bitcoin/

Some positivity here is the article, made it clear that majority of the crimes are still been committed in fiats but still I want us to discuss how an increase in adoption can correlate to increase in crime rate and possibly prevention methods to deploy to combat this trend if it's true.

Just like you already mentioned, I believe that it is just another propaganda to discourage citizens from engaging in Bitcoin because from my little understanding of how crimes and money laundering has been reported in my country from mostly the Government official, ALL and not part of their money stolen from the Countries coffers are not in a single crypto but Fiat. I believe my county now has one of the highest rates of kidnapping and ransom and not a single report has been reported that those ransoms were paid via bitcoin or any form of crypto.
Even though we cannot totally rule out some of these crimes have been perpetrated via Crypto, that does not mean that cryptocurrencies are the reasons for high crimes.

 

[BigBos]

considering that cryptocurrencies are becoming very popular nowadays, I think some scammers, as well as criminals, will try to take advantage of this. what's more, is that many people think that cryptocurrencies have transactions that are difficult to track. It's very natural that some people use it for the crime. because it's just so popular, it sometimes gets the public's attention, even though they realize that fraud and the biggest crime also happen to fiat.

Apart from that, I think the way to prevent this is for the government to work with exchanges that require KYC for certain withdrawals. I think most people will trade it there, and maybe we can stop the scams or the crimes out from it. although not optimal, but at least it's worth a try.

[Mikayla Buckley]

Bitcoin implements a nominee system, and its transaction details are publicly recorded in the Bitcoin database (blockchain).
If Bitcoin is used in criminal activities, transaction records will always be made public to the public chain. Once the supervision/criminal investigation section traces the connection between any relevant Bitcoin address in the transaction record and the individual/entity, this transaction record will always become criminal evidence.

[Pmalek]

Oh how I miss the good old days, way back before 2009 when there was no crime or poverty. People weren't getting kidnapped, killed, and cut into pieces because their family and friends couldn't afford to pay the ransom. There was no drug trafficking because we didn't have Bitcoin back in those ancient times. Cars were never stolen and sold for parts. Break-ins in houses never happened because there was no Bitcoin to steal. Government officials were fair and uncorrupted. They didn't steal and launder money for their criminal friends and partners because there was no blockchain to move that value around.

And one day some scum invented Bitcoin and our world has been in havoc ever since. Oh, wait! But all those things existed and were committed even before Bitcoin. That must mean that this new technology isn't responsible for the doings of men, and some people are just scum no matter the era they live in or the system they use to get paid.

On a more serious note.
When you hate something, like the government hates Bitcoin, you take advantage of the increased adoption to turn it into something ugly. Bitcoin and all crypto leave a digital trail when used, which makes them less effective than cash, but much better than using banks, credit cards, and various other fiat payment processors. That and there constantly rising valuation is what makes them attractive to common people and criminals alike. 

[bakasabo]

I dont believe that the crime rate will increase a lot. How many crimes are committed with cryptocurrency, compared to a regular crime (if they can be called like that). I think that the ratio s about 1 cryptocurrency related scam to a tens thousands of drugs sold, items stolen, people harmed or killed, financial crimes and etc. Cryptocurrency crime is just a one grain of sand in the ocean. Not much will change with Bitcoin adoption. Cash still will be used more often in connection with crime.

[Obito]

I dont believe that the crime rate will increase a lot. How many crimes are committed with cryptocurrency, compared to a regular crime (if they can be called like that). I think that the ratio s about 1 cryptocurrency related scam to a tens thousands of drugs sold, items stolen, people harmed or killed, financial crimes and etc. Cryptocurrency crime is just a one grain of sand in the ocean. Not much will change with Bitcoin adoption. Cash still will be used more often in connection with crime.

As bitcoin and crypto adoption idea becomes more popular among the public and as more people knows about the capabilities that it can deliver, it's only a matter of time before malicious entities will hear about it and learn about it and then they will have an idea and we will soon expect an increase in crypto related crimes.

[bakasabo]

I dont believe that the crime rate will increase a lot. How many crimes are committed with cryptocurrency, compared to a regular crime (if they can be called like that). I think that the ratio s about 1 cryptocurrency related scam to a tens thousands of drugs sold, items stolen, people harmed or killed, financial crimes and etc. Cryptocurrency crime is just a one grain of sand in the ocean. Not much will change with Bitcoin adoption. Cash still will be used more often in connection with crime.

As bitcoin and crypto adoption idea becomes more popular among the public and as more people knows about the capabilities that it can deliver, it's only a matter of time before malicious entities will hear about it and learn about it and then they will have an idea and we will soon expect an increase in crypto related crimes.

Anyway, I think that crime rate wont change much. Even when Bitcoin becomes widely used, the only crimes it can be used are scamming and money laundering. The damage dealt will increase, but it will be few number of cases and that wont really impact on the rate. Criminals wont rob you on the street and ask for crypto.

For example. El Salvador made Bitcoin legal this year. According to stats their crime rating did not change significantly, comparing 2020 and 2021.

[Upgrade00]

Criminals wont rob you on the street and ask for crypto.

Crime is not correlated with cryptocurrency, but it is very possible for criminals to attack you and request for your private keys to assess your coins - this is an example of the $5 wrench attack.

That's why it's advisable you do not store your funds on a device you carry around and do not publicize your crypto holdings as that would attract scams and theft attacks.

[Wind_FURY]

Just to highlight a paragraph from the article;

The popularity of cryptocurrency in the country has caused an increase in scams and crime using these new assets. Cryptocurrencies, due to their innovative design, can sometimes be more difficult to track than money moved via traditional fiat avenues.

https://news.bitcoin.com/kidnappers-kill-venezuelan-citizen-for-not-paying-ransom-requested-in-bitcoin/

Read the sentence again, “The popularity of cryptocurrency has caused an increase in scams and crime USING these new assets”, not necessarily “an increase in scams and crime BECAUSE of these assets.”

It’s a fallacy, OP. Correlation doesn’t mean causation.

[bakasabo]

Criminals wont rob you on the street and ask for crypto.

Crime is not correlated with cryptocurrency, but it is very possible for criminals to attack you and request for your private keys to assess your coins - this is an example of the $5 wrench attack.

That's why it's advisable you do not store your funds on a device you carry around and do not publicize your crypto holdings as that would attract scams and theft attacks.

True. It is better to keep silent about what you have and how much you have.

But what I meant is that someone will try to rob me on the street, they will more likely take my phone, chain, wallet. I doubt that they will demand me to open an app or browser and transfer my crypto to them. Same will be if someone robs my flat. They will take a laptop and a TV, instead of taking a hardware wallet, searching for private keys or wait for me and force me to tell them.

The number of such crimes as "rob/take/steal quick and sell quick" will be greatly bigger than crypto related crimes. That is why adoption wont change crime rate. I think that few criminals of that kind will read readme how to create crypto wallets and use mixers. Not because that will be hard to understand for them, but because they are fine anyway.

[rodskee]

Just to highlight a paragraph from the article;

The popularity of cryptocurrency in the country has caused an increase in scams and crime using these new assets. Cryptocurrencies, due to their innovative design, can sometimes be more difficult to track than money moved via traditional fiat avenues.
https://news.bitcoin.com/kidnappers-kill-venezuelan-citizen-for-not-paying-ransom-requested-in-bitcoin/

 

This is alarming because the crypto related cases is not just increasing but also getting dangerous each year , in the past ransom is being asked but there is no killing happens but now? this is an obvious attempt to scared all crypto holders in the world that they can be treated like this if they don't cooperate in those crimes.
Now this made me the think of declining to expose any other way of my KYC as this is the only way why we are being exposed from this criminals.

[Bitstar_coin]

Just to highlight a paragraph from the article;

The popularity of cryptocurrency in the country has caused an increase in scams and crime using these new assets. Cryptocurrencies, due to their innovative design, can sometimes be more difficult to track than money moved via traditional fiat avenues.
https://news.bitcoin.com/kidnappers-kill-venezuelan-citizen-for-not-paying-ransom-requested-in-bitcoin/

 

This is alarming because the crypto related cases is not just increasing but also getting dangerous each year , in the past ransom is being asked but there is no killing happens but now? this is an obvious attempt to scared all crypto holders in the world that they can be treated like this if they don't cooperate in those crimes.
Now this made me the think of declining to expose any other way of my KYC as this is the only way why we are being exposed from this criminals.

Even with fiat such things do happen, the increase in crypto acceptance has nothing to do with increasing crime rate, all this things already happening before crypto became popular, it is unfortunate that some bad individuals have decided to act this way and use crypto to demand ransom instead of fiat, they feel it will be difficult for the authorities to trace them by using crypto,  you should note that performing kyc is some better because with that it will be easy to trace such kind of people.

[joniboini]

Now this made me the think of declining to expose any other way of my KYC as this is the only way why we are being exposed from this criminals.

I do believe their data comes from many sources, not limited to KYC. A hack on an anonymous forum, your posting history, etc. They don't even check whether your e-mail is a throwaway e-mail or not before sending their phishing e-mail. Other than reducing your access to KYC platforms, strengthening your computer/internet security is a must.

[Wind_FURY]

Just to highlight a paragraph from the article;

The popularity of cryptocurrency in the country has caused an increase in scams and crime using these new assets. Cryptocurrencies, due to their innovative design, can sometimes be more difficult to track than money moved via traditional fiat avenues.
https://news.bitcoin.com/kidnappers-kill-venezuelan-citizen-for-not-paying-ransom-requested-in-bitcoin/

 

This is alarming because the crypto related cases is not just increasing but also getting dangerous each year , in the past ransom is being asked but there is no killing happens but now? this is an obvious attempt to scared all crypto holders in the world that they can be treated like this if they don't cooperate in those crimes.

Now this made me the think of declining to expose any other way of my KYC as this is the only way why we are being exposed from this criminals.

Kidnap for ransom gangs/criminals will always find the most efficient way to receive a transaction, whether or not the person of interest is a Bitcoin/cryptocurrency millionaire or not. Bitcoin will find its way where there are inefficiencies in “markets”, and make them more efficient.

[conected]

I dont believe that the crime rate will increase a lot. How many crimes are committed with cryptocurrency, compared to a regular crime (if they can be called like that). I think that the ratio s about 1 cryptocurrency related scam to a tens thousands of drugs sold, items stolen, people harmed or killed, financial crimes and etc. Cryptocurrency crime is just a one grain of sand in the ocean. Not much will change with Bitcoin adoption. Cash still will be used more often in connection with crime.

As bitcoin and crypto adoption idea becomes more popular among the public and as more people knows about the capabilities that it can deliver, it's only a matter of time before malicious entities will hear about it and learn about it and then they will have an idea and we will soon expect an increase in crypto related crimes.

- Illegality in investment fields such as crypto is always on the rise and when contributing to a common report each year, it cannot sum up as a major error for bitcoin or crypto adoption because technology is an area that often leaks information that has a lot of value, even with more rigor, the criminal system also easily forms layers of ideas to destroy the system and steal what is needed. The correlation can only be a small link, but the level of damage to the victim for the summation on the technology field will be higher when crypto is invested a lot of money.

[Zedpastin]

It makes more sense to use fiat which is not traceable than Bitcoin which has a public blockchain that any one can track your transactions for use with crime. Bitcoin does get used for crime like any other currency but I do not think it increases the amount of crime. I think there is less crime using Bitcoin than using fiat currencies. I think there was a saying going around that every note in circulation in the USA has been touched by cocaine I do not know if that was a myth or if it is the truth but if it is the truth then it is clear to me that Bitcoin does not have the same drug problem that the US dollar does.