What Makes People To Link Digital Currencies With Criminal Activity?
Though the cryptocurrencies are gaining ground despite ambiguity, the number of people linking the digital currencies with criminal activity is also growing. There might have been enough examples to counter such arguments, and yet there is no stopping for it. One possible reason could be the sudden surge in prices of virtual assets, and that gripped the fears among the layman. That does not mean that there were no illegal activities with the help of digital coins as unlawful activities keep growing even otherwise.
A number of people believe that the Silk Road website is responsible for linking virtual assets with that of criminal activity. That is because bitcoin was used as the principal currency in its online marketplace for buying and selling of several things. This included weapons, drugs, and any other illicit items on the dark website. As a result, this allowed increasing popularity of bitcoin while the reputation of the Silk Road took a beating. This also made both the digital currency and the website as inseparable among the people.
In 2011, the American currency and the cryptocurrency reached parity thus making the buying and selling an easy thing on the Silk Road, coincentral.com reported. This apart, it was also anonymous until the regulator started its investigation leading to prosecuting criminals. Following this, the website was forced to close the shutter while the reputation of bitcoin remained intact. That is possibly due to several technocrats projecting it to be a significant player in the cryptocurrency market in the upcoming years.
There is also another reason to link virtual asset with that of criminal activities, and that is cybercrime though it is not restricted to crypto alone. One of the primary reasons for it is due to its digital nature and bitcoin is also becoming a favored payment mode with the help of Ransomware. It is not an easy thing to find out the location of the perpetrators since there was no connectivity to a digital currency wallet.
However, bitcoin is no longer an anonymous one, and the criminals could be traced when they try to convert the digital coin into the American Greenback. Another type of hacking comes through cryptojacking that is posing a big threat than ransomware. In this case, the hackers’ motive is to mine virtual coins and not steal funds while the victim would have to bear higher electricity charges besides making the device run slower.
Anonymity Gives Room
In the normal course, any upright citizen would not have any issues in showing their identity, and it is only the mafia thug or a gangster that would look to remain anonymous. As a result, the anonymity provides enough room for the public to link digital coins with criminal activities. That is mainly because of the possibility of replacing details of an individual with that of keys enabling criminal activity.
This type of activities included acquiring any illegal goods or tax evasion or money laundering apart from capital flight. Until now, there are few people who have opted to spend a big amount of money to outside the country through the cryptocurrency route.