Bitcoin is a revolutionary invention for the Internet age. It allows value to be exchanged anonymously between two people without an “intermediary” such as a bank or other third party. You can check Immediate Bitcoin to learn more about bitcoin trading.
As a result, this digital currency has attracted many users who want to transact electronically, and it has significant advantages over fiat money (e.g., dollars, euros, and yen).
The fact that no central authority exists that can manage this currency, and its issuing worked to its advantage until now and had a significant disadvantage of making bitcoin more attractive for hackers and drug dealers who want a secure method of transacting business.
7 Ways How Bitcoin Increases Illegal Activities Online
- No regulator, no central computer controlling bitcoin means that it is impossible to close an account or seize the assets of a criminal engaging in illegal activities;
- Bitcoins can be used for money laundering due to their high anonymity. For example, you can convert your bitcoins into dollars through different exchangers and then transfer them to their bank accounts.
- Another example of how criminals can use bitcoin to conduct illegal activities is by purchasing illicit goods from trafficking sites on the darknet. In some cases, users blackmailed others using the encryption built in this currency.
- The existence of an anonymous payment system that relies on a peer-to-peer network and has no public authority that controls it means that anyone can use this currency without a name or a bank account.
- Bitcoins can be used as a payment method on websites that sell drugs and other substances illegally.
- Bitcoin is not yet considered legal tender in most countries of the world. In those places where bitcoin is widely seen as a legitimate form of payment, it is often used for money laundering.
- Bitcoins can be purchased from an ATM, and the transaction cannot be traced.
Once a bitcoin is stolen or illegally obtained (e.g., during a ransomware attack), it is difficult to trace them as no central database registers bitcoin transactions.
Bitcoins are considered a good investment for those who want to avoid government regulations and the actions of central banks.
8 Ways How Bitcoin Increases Online Crime
- By offering a high degree of anonymity, bitcoins make it very difficult for security experts and police officers to track criminals.
- The absence of a central authority means that no single computer can be targeted in case of cyber attacks, meaning that hackers cannot destroy information with the click of a button.
- Bitcoins are being used to pay for various services, including drugs in darknet online marketplaces. These websites are only accessible through particular browsers, letting users browse anonymously.
- Bitcoins can be purchased through different exchangers without any documentation. This makes it impossible to trace the user’s private information when buying this currency. After buying bitcoins, they are stored anonymously in an electronic wallet or transferred to another user.
- Bitcoin makes it possible for hackers to demand a ransom from victims so that they can get their files back. This is done by sending them emails containing links to the dark web marketplace, where users pay bitcoins to purchase tools and programs which can help them in this process.
- Another way bitcoin is used in cybercrimes is when hackers use ransomware to encrypt victims’ files and demand payment in bitcoins.
- Bitcoins are also used to pay for various services on the dark web hackers offer. These services can be anything from finding out someone’s email address, bank account information, or the passwords of their social media accounts.
- Hackers use bitcoins to purchase ads for their hacking services on search engines.
Bitcoins are considered easy to acquire money via illegal activities due to their high degree of anonymity.
This currency can be used in various cybercrimes, including phishing, data breaches, stealing personal information, and selling drugs or weapons on the dark web.
Bitcoin was created in a highly anonymous manner. Unfortunately, this anonymity makes it possible for criminals to use this currency for various kinds of illegal activities such as money laundering, extortion, and cyber attacks.
In other words, Bitcoins can be linked to terrorist groups and the dark web because of their anonymity and intractability. There’s no doubt that criminal organizations (such as terrorist groups) can use Bitcoins to buy illegal items.