Crypto and crime: is Bitcoin really good for criminals?

For almost as long as Bitcoin has been around, there have been accusations levelled against the technology’s usefulness for criminal activity. But what’s the truth? Let’s take a look at some of the common claims made around Bitcoin and criminal activity, and give you the facts.
What they say: “Bitcoin was created for criminals”
What’s the truth: Bitcoin was designed for peer-to-peer transactions
Bitcoin was developed back in 2009 by Satoshi Nakamoto as a peer-to-peer electronic cash system, effectively removing third-parties from the equation. Just like any technology or currency, it can be used for various purposes, both legal and illegal. Because of its peer-to-peer design it became a popular payment method on the dark web. But that doesn’t mean the whole underlying technology was made for criminals, just that it worked for that particular forum. In fact, the majority of Bitcoin is used for legitimate purposes. According to a report from Chainaylsis, only 0.24% of crypto transactions in 2022 was related to criminal activity. The perception that Bitcoin is exclusively a tool for criminals is just not true.
What they say: “Bitcoin offers total anonymity”
What’s the truth: Bitcoin transactions are pseudonymous
It’s often said that Bitcoin transactions are completely anonymous, making it impossible to track down any individual behind a transaction. That would obviously be useful for criminals who want to hide illegal activity. However, this isn’t true. Bitcoin transactions are pseudonymous. Each and every transaction is recorded on a public ledger called the blockchain. While no personal details are attached to these transactions, digital addresses for crypto wallets are. With the right tools and techniques, law enforcement can trace transactions and potentially identify the parties involved. It’s also impossible to alter or tamper these transactions as well, so once they’re added to the blockchain, they are available for everyone to see.
What they say: “Criminals exclusively use Bitcoin”
What’s the truth: Criminals use a variety of financial tools
Criminals are clever. They don’t use just one financial method to engage in illegal activity. In fact, they will employ as many as they can to help hide their crimes. From traditional banking and cash through to cryptocurrency, criminals will use the full range of financial instruments and technologies for their activities. According to the United Nations, somewhere between 2 – 5% of global GDP, or $800 billion – $2 trillion is related to criminal activity, Bitcoin makes up a minority share of that number.
What they say: “Bitcoin is unregulated”
What’s the truth: Bitcoin is subject to regulation
Regulation plays an important role in the crypto ecosystem. These frameworks help ensure user identification and prevent illicit activities. As the crypto space continues to grow, the authorities will need to continue working with crypto companies to develop a regulatory landscape that strikes a balance between innovation and safeguarding against criminal activities.
What they say: “Ransomware is Bitcoin’s fault”
What’s the truth: Ransomware is a cybersecurity issue
Ransomware is a serious problem that can affect individuals and businesses alike. But it is a cybersecurity problem and not a problem caused by Bitcoin. Crypto is just the normal payment method you’ll likely see attached to these cyberattacks. It’s often chosen for the “anonymity” it offers and the speed at which it can be transferred. However, the responsibility for these attacks lies with the criminals and their actions, not the technology itself. Bitcoin just finds itself tangled up amongst ransomware attacks, but it is not the cause of them.
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