In recent months, one things has become certain; Bitcoin is vulnerable. While many Bitcoin users obey the law, they are also influenced by curiosity or privacy concerns. However, Bitcoin being anonymous is a major asset for criminals to finance their crime. The virtual aspect can keep questionable transactions secret. The associated data of cryptocurrency can create a trail that releases private financial information.
BitCoin’s Criminal Activity Surges
The academic researchers that helped create the software and encryption systems for Bitcoin are now helping law enforcement track criminals. When Bitcoin was first created, there was some panic for law enforcement officers. Many officers felt that these technologies were dangerous and made things difficult. However, as the arrests and convictions have increased, there has been a shift, and now cryptocurrency is seen as an asset for prosecuting crimes.
Bitcoin is unique in that it has no Federal Reserve, gold backing, or physical notes. Bitcoin miners are tasked with running the system and preventing cheating, often unavoidable. The only real value of Bitcoin comes from people who trade it for goods, services, and other types of currency. Ideally, the money is safe from threat, as users never reveal their private keys.
However, more cases such as Silk Road; where millions of dollars of Bitcoins were being traded for illegal drugs and stolen identity data, began to become more frequent. Law enforcement is looking for ways to prevent these crimes, and they are monitoring the different ways that people make their Bitcoin payments. The Bitcoin network is supposed to blur the correspondence between transactions and IP addresses. All Bitcoin users are connected through the internet. As criminals have started creating more unique methods to use Bitcoin, researchers have done the same. The Blockchain technology records everything.
Blockchain received by JP Morgan and Others
Blockchain can transfer everything from stock to currencies without having to go through a middle man or cleaning institution. The transparency of Blockchain has allowed it to publicly receive support from JP Morgan, Goldman Sachs, and Bank of America. These corporations feel that Blockchain can be an upgrade over Bitcoin. People can increase the efficiency of their transactions by using their personal blockchains to record customer transactions, instead of using different types of software to record the data.
The future of cryptocurrecies will be in those who use blockchain technology such as Onecoin. By using Blockchain, companies would be able to reduce the temptation by criminals to make fraudulent transactions. If they tried something suspicious, that information would be available within seconds.