Bitcoin is not acting as a catalyst in the dark web.
Apr 19, 2018 Posted / 517 Views
The cryptocurrency community is always accused of sourcing all the kinds of illicit activities like tax evasion, funding terrorism, etc. But let us not speculate and predict the usage of cryptocurrency industry, instead let us observe the statistics which says around less than 1% of the Bitcoin is used for unlawful activities, according to, Foundation for Defense of Democracies.
The bullish trend in the cryptocurrency market in 2017 gave birth to many crypto millionaires one among which was Aaron Shamo. Who later turned out to be a drug dealer. According to the police he was accused of trafficking a powerful opioid called fentanyl. The consumption of which might have caused 28 death due to overdosage. Until now he has not accepted his accusation as he would be, for sure, sentenced to a life imprisonment.
The alleged drug ring's mode of operation was Bitcoin as they employed it as their means of payment.
“We have switched to bitcoin payments only. Now you will enjoy a 10 percent less price tag on all products. The good part is that paying by bitcoin you can order as much as you like with no limit”, said an e-mail from the dealer.
The law enforcement, after some research found out that 6 websites which were dealing with the sale of fentanyl, not only listed Bitcoin as a payment method but even preferred it. Ohio Republican Rob Portman, head of the Senate committee which is investigating the matter, explains in detail, “Because it’s anonymous, it’s the currency of choice for these drug traffickers.”
Jeff Sessions, Attorney General has also expressed his skepticism and said that Bitcoin is extensively being used in the dark web. Most of the people who are crypto believers don't agree on this. Instead, they are providing a vast amount of defensive facts to prove Bitcoin. For an instance, Perianne Boring, president of the Chamber of Digital Commerce, says “Blaming Bitcoin for this crisis would make as much sense as blaming the internet or cars that drug traffickers have to use.”
As buying bitcoins require real money, and the exchanges collect personal information for the conversion of bitcoins into fiat currencies, hence giving rise to anonymity paradox.
“At some point, Bitcoin is only as good as where you can spend it. You look at where the currency enters the mainstream financial system in order to get spent”, said a Justice Department official.
In relevance to a study revealed by The Foundation for Defense of Democracies, the percentage of lawbreakers who use Bitcoins for their illegal activities is less than a percent. On the other hand, it also revealed that the dark web was used for almost all of the illicit activities.
According to Tom Robinson, a chief data officer at the Elliptic, “Better privacy may be a critical feature for legal cryptocurrency use to grow, but this must be balanced with the need for law enforcement to be able to trace transactions in some circumstances.” He then continued that the report, “demonstrates the transparency of the Bitcoin blockchain, and the analytical techniques that can be used by law enforcement to trace and apprehend cybercriminals, and by financial institutions to prevent the reintroduction of this dirty money into the mainstream financial system.”
Blaming the technology for the way it is being used by some bad community is not a wise opinion. It is to be understood that the blockchain technology when channelized in a proper way can lead to fruitful results otherwise the results may be disruptive.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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