By Emily Merrell | USA
Bitcoin was started in 2009 and in 2017 it’s now making its way into the mainstream. Cryptocurrency promises us a way of currency that does not include central-banking or government regulation. However, this anonymous way of using money is putting us at risk to government agencies.
One clear example of this is the now shut-down dark web drug market, Silk Road. This online drug market promised users to be able to purchase drugs anonymously with the use of Bitcoin. This is what puts the cryptocurrency world at risk. People use it to purchase illegal items anonymously. And after a long investigation and monitoring the found of Silk Road Ross Ulbricht was arrested.
Encryption Does Not Make You Instantly Anonymous
Anonymous internet transactions are clearly the current biggest way for people to purchase illegal goods. However, the European Union has released that cryptocurrency cannot even work for terrorist organizations. A European Commission stated that terrorist groups need to use fiat currency in order to function.
Blockchain transactions are complex, that is one factor. Another part is the fact that it’s publicly available. Every transaction made with Bitcoin is recorded for the public to see, which gives the government some sort of idea how the currency is being used.
Terrorism has also caused the government to develop huge security and spy agencies. They are known for spying on all people, regardless of if they have committed crimes or not.
Fraud and Taxation
Governments are making big efforts in order to follow up with cryptocurrency users that don’t declare their earnings. The Cryptocurrency network Coinbase was ordered to release details of their user’s exchanges in order to help the US crackdown on tax evasion.
The government believes that investments should be made taxable, no matter what the currency. Cryptocurrency is currently one of the biggest ways that we have gone against the state and we need to protect it. Let’s make sure the government doesn’t get a handle on this.