Is Bitcoin Really Reliable? Is Bitcoin Traffic Money? – Understand!
Despite not being such a recent subject, more and more people have become interested in the universe of cryptocurrencies. And with that, many questions began to appear in the minds of laymen: one of the most frequent is, if bitcoin would be the “trafficking money”, or even if it really is trustworthy. We’ve also seen that TV series have associated cryptoactives with crime – in one of the Black Lightning episodes, a group of murderers are paid in bitcoins, as the amount moved would be untraceable. Although a bit misleading, this is not too far off the mark, as a recent case of money laundering and drug trafficking has broken out that is being investigated by the US Internal Revenue Service. And the company involved in the scandal is a virtual currency broker, Binance.
So, to clarify several points related to digital currencies, we separated some myths and truths about this technology.
1 – Is it really money coming from trafficking?
Claiming that a currency is “trafficking money” is, to say the least, imprecise and irresponsible – since it is possible to use any type of currency as a method of payment, whether for lawful or unlawful purposes. One example is bitcoin, which was already used to pay for two pizzas back in 2010 by the investor in Wall Street, Laszlo Hanyecz, but has also been used to conduct deep web transactions, buying drugs or weapons. However, it is known that arms trafficking is as old as the creation of a currency.
2 – Does this value not exist?
There are several philosophers who theorize about existence and essence, however. According to data presented by Visual Capitalist, in 2020 there were US$ 97.7 trillion in circulation on the planet. Since only 7% ($6.69 trillion) would be physical money, then only 7% of all currency in circulation is “real”. An example of the magnitude of the global financial market is the FOREX sector, which moves US$ 500 billion daily, and any individual can participate using one of the best forex brokers. So the fact that cryptocurrencies don’t have a physical representation doesn’t mean they don’t really exist. They exist and already accumulate an incredible $1.60 trillion in market value.
3 – Voluntary anonymity
It’s true, you only identify yourself if you want. When creating a cryptocurrency transaction portfolio, there is no document requirement. And you will only know you are sending or receiving amounts if the individual identifies your wallet. This “anonymity” was created to give users greater privacy, but this greater autonomy should also make the population responsible for keeping this means of exchange transparent and secure.
This is an example of the ethereum network, which is supervised by those users that make it up, since when using the ethereum scam site it is possible to check the transactions and how many coins each person has, making the whole system more reliable.
4 – Not traceable
Myth, since it is possible to follow the entire trail of virtual currencies. On the Github website, a famous social network among programmers, there are software that provide the complete archive of the blockchain of bitcoin. And each block in that chain is encrypted in such a way that the next block will have the information from the previous one. With that, if so-and-so sent bitcoins to someone else and consequently he transferred it to so-and-so:
– so-and-so’s block contains the information of who transferred it to him;
– while so-and-so’s block contains so-and-so information;
– and the block of sicrano will have the information of beltrano.
That way, it’s possible to go back to the possible creator of the cryptocurrency, Satoshi Nakamoto, and if the idea is to leave no traces, this strategy won’t work very well with the blockchain.