How Criminals Will Rule The World With Crypto
As technology evolves and life is increasingly intertwined with it, the new forms of crime will be based on technology.
Most common forms of crime are those centered on hacking computer systems. The cyber criminals are getting more sophisticated in their ability to commit a crime and get away without being apprehended. One way in which they get away without being caught is by using crypto currency as the payment that they demand when they undertake ransom ware attacks.
In order to understand how crypto offers security and privacy, it is important to understand how it works. All forms of crypto currency work in platforms that are peer-to-peer. This means that computer networks work on validation systems across networks and ensures that only those that are authenticated can be accessed. In addition, each platform may offer unique security features that work on encryption. Crypto, therefore, offers criminals confidentiality and anonymity.
Crypto currency allows criminals to hide their activities by concealing their identities. A criminal who asks to be paid ransom in crypto currency simply gives their account number which is an “address” on the crypto currency platform. The address does not contain information that can be used to trace the real identity of the criminal. At the same time, no red flags are raised on the crypto platforms in case a huge amount of crypto is traded or changes hands. This is contrary to the formal banking system which has thresholds. When the threshold is crossed, this will raise a red flag. Huge deposits without proper explanation or proof of source are linked to drugs and money laundering.
To put into perspective the claim which states that criminals will rule the world with crypto, let us look at some facts. Monero, which is one of the crypto currencies, was able to appreciate in value from $0.50 to a high of $12. The main contributing factor to this rise is its features which make it extremely difficult to trace the identity of the holder. Alphabay, which is the darknet equivalent of EBay, shows that most buyers of Monero are people involved in outright criminal activities. They range from illegal arms and drug dealers as well as those involved in stolen credit cards.
You may be asking the most important question: “Is the government powerless against these criminals?” The answer to your question is yes. Currently, many people to avoid paying taxes use crypto currency. The government with all its power and resources is not able to tax holders of crypto. This is because crypto operates outside of the control of the government. In the same way that it is not able to tax crypto is the same way it will not be able to rein in cyber criminals in the future. The future is dark and the future is crypto!