How is a crypto-currency, then? A cryptocurrency is a decentralized payment mechanism that simply enables citizens to transfer money across the internet to each other without the need for a trustworthy third party like a bank or financial institution. The purchases are simple, and are free in certain situations. Then yes, the fees are also semi confidential.Check This Out
Beyond that, the key advantage is that it is fully decentralized, so there is no one central figure of control or anything like this. The consequences of that are that everyone has a full list of all the transactions that have ever occurred through Bitcoin. It provides an extremely robust network and ensures that none of the transactions can be altered or overturned or policed.
The high degree of privacy in there ensures transactions can be very difficult to track. It’s not completely unlikely but in most situations it’s unrealistic. So cryptocurrency crime — because you have easy, borderless transfers, and you have a high degree of anonymity, it provides a structure that is perfect for manipulation in principle. So in most cases, when it’s a crime online with online payment systems, they tend to go to the authorities and, say, we can pass on this payment information or we can stop and reverse these transactions. And for Bitcoin, none of this will happen, but in principle, that makes things ripe for offenders.
With this in mind, many different agencies are investigating Bitcoin and looking at Bitcoin and trying to understand how it works and what they can do to policing it. It’s been quite a few times in the media, too, and the media, being the media, like focusing on its bad side. So they’re very much focusing on the crime with it. And if there’s a fraud or robbery or something like this, then Bitcoin and Bitcoin users prefer to suspect it.
Perhaps the most popular is perhaps Silk Road, which was shut down recently, which went to pay for everything from cocaine to weapons to hit man and all types of stuff with their $1.2 billion worth of Bitcoins. And the newspapers, again, to blame this on Bitcoins very easily and claim it was the responsibility of the Bitcoin consumers.