Many people are always searching for illegal activities, and bitcoin has become the biggest platform for illegal activities. Bitcoin was invented in 2008 by a person named Satoshi Nakamoto to solve the domestic currency problems. But you know that people use it illegally. Every country has people who do illegal activities, and bitcoin is a global currency that means anyone in the world can send and receive bitcoin without paying any extra fees. Some countries banned bitcoin because it is uncontrollable by the government. So in this article, we will discuss why people use bitcoin for illegal purposes? So, without wasting time, Let’s understand the reason behind using it for unlawful activities.
Bitcoin is a non-controllable platform because there are no third parties involved in it. The government, banks, financial institutions, and even the founder of bitcoin cannot control the price or anything about bitcoin. After the launching of bitcoin in 2008, it became popular in a few years. When people became aware that bitcoin is a decentralized system, they started selling and buying illegal activities because the government, banks, financial institutions, or other third parties could not trace the transactions. We can only see the public key of send and receive and transaction amount, but we cannot get details such as email, Phone number, the home address of sender and receiver. So, it has become a popular tool for illegal activities, and now the government is taking strict actions by announcing new regulations regarding bitcoin.
The collection of taxes is vital for the government for the smooth running of the country. The government provides many services for the country’s people, such as welfare services and people services and infrastructure, and many more benefits. It is only possible by collecting taxes from the citizens. But what happens when all the people start using bitcoin and will not pay tax? It sounds crazy, but it will destroy the tax system, and the government cannot contribute to the country. Bitcoin is an untraceable platform, and the government cannot trace the transactions until the bitcoin convert into fiat currency. When sending and receiving or doing all the transactions in bitcoin, no one can charge you tax, but when you withdraw fiat currency, you have to pay tax to the government if you get any gain.
Heaven for drug dealers:
The world’s most prominent business is the illegal drug business. Since you are anonymous on bitcoin, no one can trace the purpose of the transaction. You can use various wallets for transactions because you are the owner of your bitcoin account. There are no third parties who are watching you. The most significant advantage to the drug dealers is that they do not have to show their faces when dealing. They have to collect bitcoin and send the drugs to the buyer since the buyer has not seen the seller’s face, so he cannot sue in court against him. In 2013, illegal activities increased at a high level and were difficult to control. Then the government took some actions against the drug dealer by using some techniques and catching a lot of drug dealers.
Money laundering became accessible after the bitcoin invention. Traditionally, people deposit their black money in other countries’ banks, so the government cannot trace it, but bitcoin has made it easy for people to save their black money. As a result, many people start saving their black money by using the bitcoin platform. There is the following perfect example to understand how people are keeping their black money using bitcoin:
Suppose you have black money, and you want to save that money in bitcoin. In the bitcoin network, you can use various wallets. You have two wallets, bitcoin wallet X and bitcoin wallet Y. You will use X wallet for depositing through fiat currency, or you can also use bitcoin ATMs to buy bitcoins. You can give that fiat currency to a person who wants to sell bitcoin in exchange for fiat currency. Now you have some bitcoins in your wallet X, and you can transfer all the bitcoins to your wallet Y and withdraw money in fiat currency, and no one can judge if it is black money or white money. So, Bitcoin’s features also help to raise illegal activities.