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kyoukage01

Is the Bitcoin frenzy making the world less safe?

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Before we go on with the discussion on this topic, we should read this linked article first (the topic title was ripped off from here too):

https://www.emeraldgrouppublishing.com/archived/realworldresearch/world_events/bitcoin-frenzy-making-the-world-less-safe.htm

Spoiler

Is the Bitcoin frenzy making the world less safe?

 

What are the risks with Bitcoin? Bitcoin is the first and most valuable cryptocurrency and it has seen massive growth in 2017. But many people are warning about the risks associated with Bitcoin. A number of high-profile investors regard Bitcoin as a ‘bubble’ or ‘mirage’, and expect the market to crash, like the dot-com bubble. Others highlight that cryptocurrencies like Bitcoin help to enable financial crime and funding of terrorism, due to the level of anonymity that digital currencies can provide to technologically adept criminals.

 

It seems like everybody is talking about cryptocurrencies at the moment. With apps like Coinbase making it possible to buy and trade cryptocurrencies at the tap of a button, thousands of people – from political idealists to economic opportunists – have been jumping on the crypto investment bandwagon.

 

Cryptocurrencies are creeping into the mainstream, with even Goldman Sachs recently announcing their plans to start trading Bitcoin. 2017 saw the asset value of Bitcoin boom, amidst growing confidence in the first and most important cryptocurrency.

 

Many cryptocurrency investors have seen the growth of Bitcoin as a win-win situation for all concerned. But are crypto-investors inadvertently paying into a system that is making the world less safe, and putting us all at risk?

 

Since its early days, Bitcoin has had its share of ties with criminal activity. With the increased level of anonymity that it provided, Bitcoin was a popular currency on the darknet marketplace the ‘Silk Road’, where it was used chiefly to trade illegal drugs, as well as other contraband.

 

As it crawls towards the mainstream, Bitcoin has certainly shaken off some these negative associations. But the fact remains that crypto transactions continue to afford criminals with a veil of anonymity, enabling them to evade justice – and enabling the financing of all manner of malicious activities.

 

The problem is that, unlike conventional currencies, cryptocurrencies are decentralized, and therefore not subject to the same regulations, reviews, and monitoring as in financial institutions or banks. This means that potential criminal transactions that are processed in cryptocurrency bypass the regulatory controls that banks are legally required to perform.

 

Bitcoin and terrorist funding

 

Amongst the criminal organizations that are benefitting from unregulated cryptocurrency transactions are ISIS. In a PDF circulated on social media, entitled “Bitcoin and the Charity of Violent Physical Struggle”, one ISIS supporter explains, “This system has the potential to revive the lost sunnah of donating to the mujahideen, it is simple, easy, and we ask Allah to hasten it’s (sic) usage for us”.

 

As academics from Macquarie University have highlighted, the utility of crypto for helping to fund ISIS terrorist operations is significant.

 

Ghost Security Group, a hacktivist and anti-terrorism group, claimed to have identified a chain of transactions to Bitcoin wallets believed to be owned by ISIS which contained funds between $4.7m and $15.7m – between one to three percent of their estimated annual income. The group stated to news network NewsBTC that ISIS is “extensively using Bitcoin for funding their operations”.

 

In 2015, German media company Deutsche Welle reported that one Bitcoin wallet believed to belong to ISIS received around $23m within a single month.

 

Lack of verification

 

One of the key issues is how easy it is for potential criminals to buy and transfer Bitcoin using Bitcoin ATMs. Irwan and Milad note that using a Bitcoin ATM, a bad actor is able to very quickly and easily transfer funds anywhere in the world. “In many cases, insufficient or ineffective levels of verification are being carried out to determine their money laundering or terrorism financing risk,” they state.

 

For many years, Irwan and Milad explain, financial institutions have successfully used red flag indicators and suspicious behaviour models to detect money laundering and terrorism financing activity. They state that it is “unlikely that similar behaviour models or red flag indicators exist for detecting illicit transactions in the Bitcoin blockchain.”

In another recent article, Reynolds and Irwin highlight that although Bitcoin users’ public keys can be traced through transaction history, they remain anonymous unless accompanied by other requirements of confirming identity data, such as an email address. This limits detection if an account user submits fraudulent information or simply doesn’t submit any personally identifiable information.

 

As Bitcoin and other cryptocurrencies continue to grow, the question of regulation becomes increasingly pressing. “It is essential that steps are taken now to understand potential areas of weakness in this technology before it, and others like it, become mainstream methods of transferring illicit funds around the world,” Irwan and Milad conclude. “Failing to respond now may be a recipe for disaster.”

 

 

(First, let me point out that the world was never safe, even until today's modern times. There are literally vast scores of information on this, from the mouths of ancient philosophers to modern trolls on social media, but since we are discussing about Bitcoins here, we will limit ourselves to it.)

 

From the moment Satoshi Nakamoto mentioned about the use of Bitcoin as a tool for anonymous transactions, it must have reached the eyes and ears of criminals as a potential tool for their illegal activities. This has been highlighted in the now infamous "digital Silk Road" that (thankfully) has been taken down by authorities. Thus even today, there are still people who view cryptocurrencies in general as being pegged to criminal activities. However, I, and everybody else here will surely agree, view this thinking as being unfair.

 

The fact that crypto is used for crimes is indeed undeniable. But let us not forget that even before digital currencies came into existence, there are already valuable objects other than fiat that are used for the same purpose, and there is a certain allure to those physical objects which can literally be slapped on the face of the nearest enemy or henchman, something that obviously cannot be done with digital assets. So if Bitcoin is going to be declared illegal just because it is used for crimes, shouldn't this be done to gold, gemstones, antiques, artifacts, etc. as well?

 

Another thing to be considered is that Bitcoin introduced the blockchain. Actually, the idea of digital peer-to-peer connections is nothing new (take Bittorrent for example) but Bitcoin can certainly claim the spot of being the pioneer in peer-to-peer digital monetary transactions, one that is virtually impervious to alterations by hackers. Even if the world rejects Bitcoin itself, it cannot deny the fact that they find plenty of uses for the blockchain technology: the internet world is full of such reports of nations and organizations exploiting the possibility of its usage to their systems, if not being used already at the time of this writing.

 

There are still many things to add to the benefits Bitcoin brings to the world, which I will leave for others to comment on. To say that Bitcoin, which in the end is only a tool and an asset in the digital world, is making the world less safe is fallacious. To point the criminals and other entities who deviously use crypto to their advantage as being the ones who makes the world less safe would be a far more accurate statement.

 

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New to the Cryptotalk forum? Here's something that might help you get started:

https://cryptotalk.org/topic/24401-forum-tutorials-tips-and-tricks-for-newbies-compilation/

 

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A very interesting article, that is up for much discussion. 
There are quite a few naysayers disinforming the world about Bitcoin. Even now, 11 years after its inception, Bitcoin is still being described as a means of payment that facilitates illegal online activities. This was a fact back in the Silk Road days that Bitcoin's use case was just to buy drugs on the internet. Wikileaks was also accepting Bitcoin after having all their other channels of receiving funds (Visa, Mastercard, Paypal) blocked by the US government. 

 

So it became notorious as a method to bypass government sanctions and used by illicit dark web markets. Nonetheless the fact that Bitcoin was actually working caught the attention of Silicon Valley and major corporations began accepting it as digital money. Many of the pioneers of modern technology as Bill Gates and Richard Branson talked about Bitcoin publicly and forced the mainstream media to change their negative stance.

 

Another important fact to discuss is that Bitcoin was never intended to be anonymous. While Satoshi added support for Tor and Bitcoin was mined through anonymous channels on a few occasions, it was also never mentioned that Bitcoin was anonymous, or untraceable or something obscure and private. It was stated that it featured pseudo-anonymity. It was explained that the blockchain was transparent and that every transaction was permanently recorded on the blockchain, which is a public ledger open for anyone to research.
 
Somehow though, probably because of how the media was reporting Bitcoin during the first years, people got a false impression that Bitcoin transactions were anonymous. Many individuals have been arrested so far by taking part or facilitating illegal activities in the black markets after on-chain analysis led the authorities to names and addresses.

 

In general, concerning the subject of cryptocurrencies posing a danger to world safety, I'd say it is something not worth considering. The criminal networks are more afraid of using cryptocurrencies than paper cash, or as you explained other valuable assets which they use as escrow in their transactions.

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I think it's a mistake to link bitcoin and cryptocurrency to crime and illegal actions, this is an attempt to mislead public opinion and trick people into straying away from crypto, that bad people are everywhere and before the invention of bitcoin in 2009

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10 hours ago, Moaz said:

I think it's a mistake to link bitcoin and cryptocurrency to crime and illegal actions, this is an attempt to mislead public opinion and trick people into straying away from crypto, that bad people are everywhere and before the invention of bitcoin in 2009

Cryptocurrencies  are safe but the way there are scars in flat also are scams on crypto, and some people due to being foolish and ignorant makes scammers easily scam them. If cryptocurrencies  are used properly, no scammer can be successful. 

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12 hours ago, Yomose said:

Cryptocurrencies  are safe but the way there are scars in flat also are scams on crypto, and some people due to being foolish and ignorant makes scammers easily scam them. If cryptocurrencies  are used properly, no scammer can be successful. 

The problem comes from the reactions of governments that treat crypto as a menace. Also the increasing use of the dark web markets might be what they want in order to blame it all on bitcoin. 

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Actually to me is no, I will best describe this as just narrow minded perception of some individuals, or negative understanding, misconception some purportedly anticipate against Crypto world due to lack of good access to genuine, valid information about the world of Crypto currency system.

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@BTC Future We might say that old accusations die hard. It will probably take a long time before some people move on from the Silk Road. What is worrying now is the creation of altcoins that do feature an enhanced privacy protection (even on transaction records). For those with no knowledge of crypto, if there are any potential news of criminals getting caught and admitting to use of crypto to obscure their transactions they might try to point out Bitcoin for this. But it might not actually be so, it could be another altcoin was in use. Bitcoin shouldn't deserve the faults other altcoins are creating if this is the case.

 

People therefore shouldn't worry too much about Bitcoin itself being used by criminals since its transactions wasn't intended to be anonymous and are publicly displayed, as you say. So here's a quick and slightly off-topic question: are there existing altcoins whose transaction records are very hard to trace, and thus are more potentially favored by criminals?

 

On 7/31/2020 at 4:50 PM, BTC Future said:

The problem comes from the reactions of governments that treat crypto as a menace. Also the increasing use of the dark web markets might be what they want in order to blame it all on bitcoin. 

Some authoritarian countries that are a threat to regional security try to make extensive use of crypto to evade international sanctions. Maybe this is one of the points other governments have added to their "Why We Hate Crypto" list.

 

Edited by kyoukage01
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New to the Cryptotalk forum? Here's something that might help you get started:

https://cryptotalk.org/topic/24401-forum-tutorials-tips-and-tricks-for-newbies-compilation/

 

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23 hours ago, buway said:

I have to add that lately this has changed a lot. I also remember Bitcoin being called the criminals online money in news and they had it connected to Silk Road. The news always want to make drama from everything. But this has changed a lot now. Bitcoin made it mainstream a few years ago and it will be again as now it is institutional money coming in as banks and big companies are investing. I don't know if this is good or bad for Bitcoin but it can be positive for the price.

I agree to this, everything about bitcoin has changed, now many leaders in the world are holding bitcoin, some are even golding it secretly which can be perfectly done as bitcoin privacy is possible. Now, the world are embracing bitcoin much more. With time, bitcoin marketcap will increase the more. 

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cryptocurrencies are safe, but there are a lot of scammers on crypto, everybody should know valid information about the world of cryptocurrency system and keep ears open

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yeah, bitcoins and privacy tokens make internet and other areas of illegal activities make possible for people. more people selling drugs online etc


 

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The interest in ETFs has been so strong that BlackRock's fund became the fastest-growing in history.   According to CryptoQuant analysts, the reserves of bitcoin on exchanges will last only a few months at the current rates. Total available exchange reserves have decreased by more than 800,000 BTC and have reached their lowest level in the history of two-year observations. As of April 16, they stand at about 2 million BTC. Assuming a daily influx into spot BTC-ETFs of about $500 million, which at current prices equates to approximately 8,025 coins, it would take just nine months to completely deplete these reserves.   The results of calculations using the Stock-to-Flow (S2F) model, which demonstrates the relationship between an asset's usage and its reserves, show that after the halving, the bitcoin S2F coefficient will reach 112 points. This is nearly twice the S2F for gold (60 points), indicating that by January 2025, bitcoin will become a more scarce commodity than the most popular precious metal.   In such a scenario, another powerful new driver could emerge. Following the U.S., similar investment inflows into cryptocurrency could be provided by spot ETFs in China. According to insider information from Bloomberg, the SEC of Hong Kong could make a positive decision on launching such funds within the next few days. And perhaps the predictions by ARK Invest's CEO, Cathy Wood, and author Robert Kiyosaki, who expect the price of bitcoin to reach $2.3 million per coin by 2030, are not so far from the truth.   As of the evening of Friday, April 19, BTC/USD is trading around $64,150. The total market capitalization of the crypto market stands at $2.32 trillion, down from $2.44 trillion a week ago. The Crypto Fear & Greed Index has dropped from 79 to 66 points, moving from the Extreme Greed zone to the Greed zone.   Finally, a bit of intriguing information for collectors. As it has been revealed, miners have begun active preparations for the "hunt" for the first "epic" satoshi to be mined after the current halving. Whoever mines it might receive a substantial sum, as the estimated value of this "collectible" digital coin could be several tens of millions of dollars. About two years ago, Casey Rodarmor, creator of the Ordinals protocol on the blockchain of the first cryptocurrency, developed a system for classifying the rarity of individual sats. With the launch of "inscriptions," it became possible to number and sell fractions of bitcoin similar to non-fungible tokens (NFTs).   Rodarmor's scale varies from the first "unusual" satoshi in each block to the "mythical" – the very first in the history of the blockchain. One of the highest degrees of rarity is the "epic" sat, mined in the first block after each halving. It is possible that collectors might value such an asset even at $50 million. (Remember that a satoshi is one hundred millionth of a bitcoin (0.00000001), and at the current BTC price, the price of a regular, non-collectible sat is just $0.00064). NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
    • Get Up to 500 USDT FREEEEEEE    👇🥳  👉   Go Spin and win 5 BTC & all Crypto  ☝️💸
    • Наступило еще одно сокращение награды биткойнов вдвое, четвертое на данный момент, и оно не было похоже ни на одно другое до него, причем институциональные инвестиции впервые сыграли ключевую роль. Уполовинивание биткойнов исторически было связано с одним существенным сходством — последующим скачком цены BTC , который часто происходит через некоторое время после халвинга. Хотя сообществу еще предстоит выяснить, пойдет ли четвертое халвинг по тому же пути, кое-что уже изменилось в халвинге Биткойна в 2024 году. База пользователей криптовалют выросла как минимум на 400% с момента сокращения вдвое в 2020 году Хотя скорость генерации новых биткойнов снизилась со времени первого халвинга, спрос не остался на месте. По данным различных источников , с момента предыдущего сокращения биткойнов вдвое, которое произошло в мае 2020 года , глобальная база пользователей криптовалюты увеличилась как минимум на 400 миллионов пользователей. По оценкам Кембриджского центра альтернативных финансов (CCAF), в 2020 году число владельцев криптовалют во всем мире составило около 100 миллионов пользователей . По оценкам криптобиржи Crypto.com, к концу 2023 года число пользователей криптовалюты в мире выросло до 580 миллионов человек . Глобальные пользователи криптовалюты с января 2023 г. по декабрь 2023 г. Источник. Крипто.com Несмотря на то, что Биткойн является крупнейшей в мире криптовалютой по рыночной капитализации и самой старой, у него, очевидно, меньше пользователей, чем у всей криптоэкосистемы. По данным Technopedia, по состоянию на 2024 год около 2,7% мирового населения будут владеть биткойнами, что составляет около 219 миллионов  человек. Если верить данным, то, согласно расчетам Crypto.com, эта цифра выросла примерно на 208% по сравнению с 71 миллионом пользователей Биткойна четыре года назад. В случае с Биткойном или большинством других криптовалют оценка большинства пользователей не может быть на 100% точной, поскольку анализ транзакций в блокчейне часто неспособен отличить долгосрочных держателей от потерянных BTC, а также других факторов. Ралли биткойнов перед сокращением вдвое в 2024 году еще не наблюдалось Одно из самых больших различий между четвертым сокращением биткойна и тремя предыдущими  заключается в том, что перед сокращением в 2024 году цена продемонстрировала необычайный рост. В предыдущих циклах цена Биткойна регистрировала снижения перед халвингом, а новые исторические максимумы были достигнуты примерно через год после даты сокращения награды ха блок. Например, биткойн не поднялся выше ранее установленного ATH в 20 000 долларов до халвинга в 2020 году. В этом цикле цена Биткойна превысила ATH только через 10 месяцев после сокращения вдвое. На этот раз картина совсем иная. В текущем цикле Биткойн достиг рекордного максимума прямо перед событием халвинга, установив рекорд в 73 600 долларов 13 марта 2024 года. Такого прорыва никогда раньше не наблюдалось, и с этим согласны многие аналитики, в том числе криптоаналитик eToro Саймон Питерс. На этот раз майнеры «лучше подготовлены» к халвингу Невиданное ранее повышение цен на биткойны перед сокращением вдвое потенциально оказало положительное влияние на майеинговую отрасль, поскольку майнеры получили больший контроль над затратами на добычу биткойна. «По сравнению с предыдущим сокращением вдвое, похоже, что майнеры в целом находятся в лучшей форме с точки зрения более низкого уровня долга и потенциально лучшего контроля над своими расходами, такими как электричество», — сказал директор по исследованиям Fidelity Digital Assets Крис Койпер, добавив: «Что также помогает майнерам в этом цикле, так это повышение цен перед  сокращением вдвое — то, чего также не наблюдалось в предыдущих циклах». С момента третьего сокращения вдвое в мае 2020 года потребление энергии при майнинге биткойнов значительно возросло, увеличившись примерно с 50 тераватт-часов (Twh) до 99 Twh 18 апреля 2024 года. Энергопотребление биткойнов. Источник: Дигикономист В то же время объем потребления энергии в сети Биткойн, основанной на возобновляемых источниках энергии, также увеличился: по данным Bitcoin ESG Forecast, на долю возобновляемых источников энергии приходилось 54,5% потребления майнинга BTC по состоянию на январь 2024 года. По данным CCAF, по состоянию на сентябрь 2020 года этот показатель составлял 39%. Первое сокращение биткойнов вдвое с помощью спотовых BTC ETF в США Одна из самых простых особенностей сокращения биткойнов в два раза в 2024  году заключается в том, что это сокращение вдвое станет первым в истории, когда биржевые фонды BTC (ETF) включены в Соединенные Штаты. После многих лет усилий спотовые биткойн-ETF дебютировали в январе 2024 года, открыв доступ к биткойнам для институциональных инвесторов.   По словам аналитика Bloomberg ETF Эрика Балчунаса, спотовые биткойн-ETF добились «ошеломляющего успеха», что, очевидно, отражает всплеск спроса на биткойн.
    • 20.04.2024 Тарифы Kingex 👑   Покупка криптовалюты / Buying cryptocurrency:   BTC/ETH  +1.7% (Мы доплачиваем) USDT  +1.7% (Мы доплачиваем)   ^^SALE^^ от 50k    + 1.9%    Продажа криптовалюты / Selling cryptocurrency:   BTC/ETH  - по запросу USDT   - по запросу   Оператор: @Kingex Сайт: Kingex.io Курс на протяжении дня может меняться! ------------------------ Будьте ОСТОРОЖНЫ, появились фейки! Наш телеграм: @Kingex
    • точно не зна, насчет 1го, но во втором стандартные долбанутые а ля erc20 комиссии   кстати, с наступившим !   можно халвы купить в 5ерочке отпраздновать   и тончик снова припал
    • Представители Федерального бюро расследований предупреждают общественность о распространении программы-вымогателя Akira. Согласно заявлению ФБР , программа-вымогатель Akira Bitcoin ( BTC ) нанесла многомиллионные убытки различным компаниям и организациям в Северной Америке, Европе и Австралии. Вредоносное ПО получает доступ к инфраструктуре предприятия через VPN, получая доступ к программному обеспечению без многофакторной аутентификации. Затем Акира крадет конфиденциальные данные и важную информацию, блокируя доступ к системе. Далее на экране отображается сообщение с требованием выкупа. Хакеры используют биткойн в качестве способа оплаты.   В результате распространения программы-вымогателя неизвестные мошенники завладели более чем $42 млн, затронув более 250 компаний. Первоначально хакеры атаковали компьютерные системы на базе Windows, но позже следователи выявили и Linux-версию Akira. ФБР совместно с Агентством кибербезопасности и безопасности инфраструктуры (CISA), Европейским центром по киберпреступности Европола (EC3) и Национальным центром кибербезопасности Нидерландов (NCSC-NL) выпустило специальное предупреждение. Ранее ФБР опубликовало отчет о мошенничестве с инвестициями в криптовалюту. По данным агентства, в 2023 году этот показатель увеличился на 53% до $3,94 млрд. Как пояснили в ФБР, большая часть афер была связана с обещанием высоких прибылей от инвестиций в цифровые активы и составляет 86% всех потерь от инвестиционного мошенничества. В Соединенных Штатах.
    • Как и другие L2-решения, конкуренты (солана) и сам эфир. У меня возникла мысль, не перелезть ли с матика в оптимизм, арбитрум или еще что. Как раз пока дно. Но че-то лень. А другие более значительные перед халвингом были? Уж какие случились. Я пересказы видел и не потянуло слушать целиком.
    • Здравствуйте, уважаемые пользователи!   Хотим Вас уведомить, что на сайт добавили следующие направления обмена: Solana SOL > USDT TRC20 USDT TRC20 > Solana SOL
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