Financial Future Lies With Bitcoin An Enigma & Solution
Progress of The Internet and of Criminals
March of progress into the ether and beyond across the internet has been marked by several milestones, one of the most recent ones being the birth and growth of cryptocurrencies and Bitcoin. One interesting aspect has been the genesis (and demise) of several criminal groups who use online currency for their financial operations. In this article, you see what the leading currency is and why it is favored by the criminal organizations.
Bitcoin is Different
This article is not about crime or criminal groups but rather about the cryptocurrency, bitcoin. The amount of anonymity and easy handling makes bitcoin a favorite not only for criminals but also for the common user. It uses highly complex encryption and centralized network for its operations. Why is this so important? It is like this.
The encryption helps preserve the integrity of the currency and the financial transaction. If anyone could break this code, then the currency will lose its value. Further, if anyone breaks the coding of the transaction, they could trace the movement of the merchandise and cause havoc.
Operations of the Blockchain Network
The centralization of the network, called the blockchain network, helps preserve the transparency of operations. It means anyone who is interested in tracing blockchain transactions (read mining), can do so. In fact, they are paid to do so. This helps preserve the safety of business deals. The records maintained by the miners help to validate the transactions.
Rise in Crime
What has all this to do with criminal activity? Everything, according to knowledgeable sources. Criminals need the cover of anonymity to operate safely. Bitcoins offer this type of anonymity. Liberty Reserve is a type of cryptocurrency that was designed to launder black money. One did not require any identification save an email address, a user name, and a phone number.
The Justice Department arrested the group of people operating the Liberty Reserve for money laundering. Is this a reflection of the way things are shaping in the world of cryptocurrencies? As far as Bitcoin is concerned, there is no worry. It is decentralized enough to help make covert operations by criminal groups transparent. Moreover, the anonymity helps prevent too much intimacy, especially the kind that criminals need.