If Bitcoin is better, why do criminals use it for money laundering?

[Okb Tested]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

[logfiles]

It's crazy how you demonize Bitcoin and yet the fiat money from your country or even the USD has been used to launder money by corrupt folk in your jurisdiction, commit fraud, buy drugs and, finance crime and terrorism since time immemorial. Ever since Bitcoin came into the picture, Government looked for the perfect scapegoat but the amount of money "Laundered" through BTC is far less than that that has been laundered through fiat. So let's cut the crap of saying that BTC is only used for laundering.

[qwertyup23]

Bitcoin was the victim- meaning it was used by criminals in order to transfer and purchase illegal items due to its anonymity on its transactions making it difficult for the government to track the whereabouts of these buyers.

The fault here lies on the comparison. Meaning, fiat has long been used by all sorts of criminals to purchase or launder money from one place to another. Additionally, fiat is still continuously used today as the main currency for transactions. Now, do these faults still make BTC worse than fiat or the other way around?

Instead of looking at the negative aspects of BTC, check the other way around. The application of the blockchain technology not only on payments but in promoting transparency has helped numerous transactions all over the world. It even found its application on some government framework in order to combat against corruption, which would definitely be the ideal situation as a whole.

[Marykeller]

It's out of hate for Bitcoin that someone thinks Bitcoin is a major tool that scammers and criminals use most to carry out their ugly plans, without including fiat among them.

Nothing on earth that hasn't been used for good and bad purposes. Still, people are using them in ways they can.

On that note, if we go ahead to talk about what fiat is being used for, I'm not sure you will be happier using it. Here you are, despite all, using it in your daily spending without reasoning in a day about what it has been used for by the government and individuals who use fiat for ugly purposes.

Don't allow the bad things you hear about something to blind you from seeing the good side of that. Because in everything the good of that overshadows the bad. So, don't judge Bitcoin wrongly because of what the media says

[rat03gopoh]

You misunderstand the context of "better." Bitcoin is better for eliminating middlemen, not better for eliminating criminals.

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Yes, and there should have been no money laundering stories before Bitcoin was introduced. However, it's important to note that Bitcoin isn't completely anonymous. That's why so many money laundering cases have been uncovered.

[IjawMan]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

Before Bitcoin there has been scam, drug cartels, fraudsters money launderers all using the fiat currency to do transactions for their deals and transactions. Imv, bitcoin is the victim in this cause Bitcoin was not created for this purpose but bad actors decide to abuse it privacy and anonymity attributes.

With what you expressing it is obvious you are ignorant about bitcoin been open source giving everyone access to see the Bitcoin blockchain with all transactions tied to every addresses. No body or authority can clean any traces as it is done with the fiat transactions by banks clearing data that will lead to fraudulent related transactions. Nothing is classified in the Bitcoin blockchain, it is a ledger for all to view and analyse how and where transactions stopped.

Bitcoin is the wrong currency to use for fraudulent transaction cause ones your identity is tied to an address used in those transactions you will be easily caught as there can not be any form of erasing it as it can be done with the real fraud currency called fiat.

[Chikito]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

The news about fiat abuse is greater than bitcoin.

Bitcoin is digital which we can track it each satoshi, while Fiat, as paper money, is tangible and commonly used for direct criminal transactions and is untracked.

Criminals know well how to treat fiat. They don't keep it in the bank so cannot be monitored, cannot be seen, and cannot be known, while bitcoin, you know well who owns it on the explorer, You'll find out who the owner is when he transfers it to an exchange.

Bitcoin for money laundering is nonsense. There must be someone know who the owner.

[Majestic-milf]

It's crazy how you demonize Bitcoin and yet the fiat money from your country or even the USD has been used to launder money by corrupt folk in your jurisdiction, commit fraud, buy drugs and, finance crime and terrorism since time immemorial. Ever since Bitcoin came into the picture, Government looked for the perfect scapegoat but the amount of money "Laundered" through BTC is far less than that that has been laundered through fiat. So let's cut the crap of saying that BTC is only used for laundering.

I don't think he's trying to demonize Bitcoin per se. This sounds like someone who wants to be sure he's not doing the wrong thing by investing. When you have the Jamie Dimons and Warren Buffetts and every other opposer of Bitcoin who have made it their lives mission to criticize the coin and reduce it to nothing with their negative takes, it's sure going to put some form of doubt in the minds of people.
 Op is trying to analyze Bitcoin but from a very confused perspective, and it's the duty of those who know better to set him right.
 Fiat isn't regarded as evil because that's what everyone is used to meanwhile, before paper money came into circulation, there where other means of paying for goods and services but I doubt that paper money received much criticism the way Bitcoin is taking. It just goes to show that people will argue and bitch about that which doesn't favor them or they're not used to.

[Razmirraz]

Bitcoin is like a kitchen knife. Its function depends on its owner. If held by a chef, it will produce delicious food, but if held by the wrong person, it will become a deadly weapon. Bitcoin is just a (neutral) tool, just like fiat money, the one who determines whether it is good or bad is the holder.

It's important to clarify that Bitcoin is not a perfect way to launder money or avoid tracking. In fact, all Bitcoin transactions are recorded permanently and transparently on a public ledger (blockchain). Although there is no requirement to register a name when creating an anonymous wallet, this permanent record actually allows law enforcement agencies such as the police and FBI to track the flow of funds more easily.
So, Bitcoin is not a perfect way to commit crimes, on the contrary, Bitcoin becomes very risky for criminals because all their fund movements are permanently published.

[fullfitlarry]

I am not against Bitcoin, i just need honest answers that would convince me more about Bitcoin because I'm newly into it. Some news I've seen about Bitcoin is either scam related, like people getting scammed through it on telegram, drug cartels using it to launder money, and criminals stealing from shop owners who use Bitcoin, if it is that better than fiat, why is it possible for criminals to use it or clean their dirty money with it?

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

It's because every technology in the world has it's pros and cons despite it was not designed to be used like that. Just like Bitcoin, the vision of Satoshi is very different. However, there are minds that find it's loophole and take advantage of it.

But it doesn't mean that Bitcoin is bad, on the contrary, it's not a good tool for criminals as everything can be seen in blockchain and can be trace to them. If there is crypto that those criminals that you are referring to, then they should use Monero and not Bitcoin as the latter is pseudo-anonymous.

[maydna]

Bitcoin is a double edge, good and bad so people can use for those two things whether they will use for good or bad things. We see criminals used Bitcoin for illegal things but we should see that many people used Bitcoin for legal things and even they are make money from Bitcoin.

We can't just see it from one side only but take a look from both side and choose it. If we don't want to use for bad things, we can choose the good things. Bitcoin like fiat in any currency which can be used for good and bad things so that depend on how people use it.

[MarjorieZimmermanGinger]

Money saved in the bank can be traceable but Bitcoin is anonymous if stored in wallets that doesn't require KYC, isn't that a perfect means of money laundering? Cause it sounds like one to me, so i need explanations why i shouldn't feel it's a perfect means of laundering money for criminals.

It has nothing to do with Bitcoin being the best and then there are groups that actually commit crimes through money laundering. Money laundering models existed in various places long before Bitcoin was created. Bitcoin like fiat currencies, is a victim of illegal activities carried out by groups or individuals involved in money laundering. Sometimes Bitcoin isn't completely anonymous, which is why some cases are exposed due to activities carried out by greedy individuals or individuals.

My understanding is that Bitcoin is far better at eliminating intermediaries in transactions and other things. Bitcoin wasn't created to eliminate illegal activities like money laundering because it involves individuals or groups. Even if it weren't with Bitcoin, they would do it with other forms of activity.