Bitcoin's anonymity is really a great characteristic. It enables users to use BTC in any transactions with nearly no traces. But is this really a good thing? Let us consider utilizing bitcoin in a negative way. Since bitcoin is considered currency, there is no doubt that a person that needs money will not reject bitcoin even if it involves unethical or illegal act.
Due to the anonymity of bitcoin, some uses bitcoin in a negative way [citation needed]. They can easily use bitcoin in paying others to commit crimes. They can even use bitcoin in bribery and/or money laundering. This characteristic of bitcoin are abused [citation needed] and it will never end well.
For the case of terrorism, terrorist can easily purchase weaponry from other country. With the use of transaction using bitcoin, authorities will have a hard time tracing that transaction thus, will give advantage to the side of terrorists.
This is not an impossible scenario. People can now use bitcoin in any way they want to. It's inevitable.
We had this discussion so many times. The first time it was probably on the day Bitcoin was created. It always boils down to this.
- Bitcoin is not anonymous. especially if you don't know what you're doing. But it is very hard to trace if you know what you're doing.
- It is pretty much the same with cash and nobody seems to see these points with cash. O wait they just started to notice it and are pushing for a cashless society so we can be controlled better. One more reason to use Bitcoin.
- Bitcoin is a tool. It is neither intrinsic bad or good. It depends on how people use it. It is the same with a knife. A knife is a tool. Most people do good things with knifes and it helps many people with their daily life. But you could also use it for bad things like killing someone. Still nobody would want to forbid knifes.