The cryptocurrency solves the fundamental currency problems with fiat currency such as USD, INR, POUNDS, etc. We cannot do international transactions, and if possible, the third parties were to charge a high amount of fees for each transaction still it also gave birth to illegal activities. When things get popular, people will start finding a way to do criminal work, and it is the same in the case of bitcoin. Yes, bitcoin is used for illicit activities because it has become popular in a few years with its decentralized services. So, in this article, we will discuss how bitcoin is involved in illegal activities. So, without wasting time, let’s understand the reason behind it.
What is Bitcoin:
Bitcoin is a decentralized system that means no one can control bitcoin. Bitcoin is the same as fiat currency, but the difference is that it is in a digital form. Bitcoin was invented in 2008 by Satoshi Nakamoto to solve all the fundamental problems concerning fiat currency. In brief, bitcoin is a globally accepted digital cryptocurrency, which means you can send bitcoin to anyone worldwide.
How does bitcoin support illegal work?
Bitcoin is a decentralized system: Before going further on illegal activities, first, we have to understand how it works. Bitcoin is a decentralized currency that means no one can control bitcoin, such as banks, the government, financial institutions, or even the founder of bitcoin, Satoshi Nakamoto. Bitcoin solves people's everyday problems concerning fiat currency because, before 2008, transaction fees or charges were very high. After all, third parties were involved. So, Satoshi wanted to make a currency that would be uncontrollable, and he made that currency named Bitcoin.
There are a lot of miners who are working behind the bitcoin network. They solve the complex mathematical equations to validate and broadcast the bitcoin blocks or set of transactions on the blockchain. No one can trace or check your details because you are the actual owner of your account. The banks, financial institutions, and other service providers are centralized systems that mean if you want to use their service, you have to provide them with your personal information. You have to obey their rules and regulations. If you break their law or condition, then they can suspend your account. They take all the records or activities and can share your activities with the government as per requirement.
There are a lot of benefits of using bitcoin, such as you do not need to pay high charges or fees to third parties like banks and other financial service providers because bitcoin is a decentralized system. In addition, you can expand your business by integrating the code to accept payments in bitcoin, and you can earn money through investing, https://www.btcrevolution.io. But you know that if there is a positive side, there will also be a negative side.
How to work a miracle for drug dealers or smugglers:
Since bitcoin is a decentralized system that means no third parties can control it, such as the government, banks, or other institutions, it becomes an opportunity for people involved in illegal activities. Bitcoin transactions are not traceable by the government and other third parties because it is a separate currency without a manager and controller. Bitcoin users are the controllers. You can use different bitcoin wallets, and your privacy is anonymous. People start selling drugs or things that are illegal by accepting payment in bitcoin.
When you do a transaction through bitcoin currency, your transactions will list on the blockchain that will show your public key address, receiver’s public key address, and the translation amount, but no one can see who you are? What is your email address or phone number? Because you are anonymous.
Many drug dealers or smugglers start doing transactions in bitcoin and selling the illegal goods and services banned in the country because no one can trace their transactions.
Some countries banned it:
When bitcoin became popular, the usability of bitcoin expanded all over the world because of its features. Still, bad people started doing illegal activities that were impossible for the government to trace. It is the main reason bitcoin is banned in some countries because it is not controllable.