Last time I heard that China was cracking down on Bitcoin because of the energy resources that mining used. Now China and the US are arguing that Cryptocurrency (Bitcoin) is dangerous because of its use in illegal activities. I feel as if this is more of an excuse than a reason.
First of all, Bitcoin is not entirely private nor transparent. When you use Bitcoin, there are all kinds of ways to trace or to find out who, what, and where.
First off, we know that by definition, all transactions are recorded on the blockchain. Even if you hide your IP address, use a Tor browser, and stay as anonymous as possible, there is still your MAC address (Media Access control) which is a burnt-in address. Even if you got around all of that, converting the Bitcoin to something usable is a problem. Every place you go to convert crypto to something more accepted has KYC information. So unless you are hodling it, people can find out. Remember, with Google, nothing is really private that is on the internet.
While I do not doubt that nefarious deeds are being paid for in crypto, I am sure that the same actions are taking place with Fiat. The only difference is the government has gotten good at using our money and hiding it. London is now the money laundering capital of the world. It is also a tax haven for the super-rich. The worst part is that it is not a secret. The rich and powerful have been doing this for decades.
So then why are governments against Bitcoin? Is it because they don’t control it? Is it because it’s too transparent (whale sighting)? Or is it because it’s too efficient?
I’m sure it’s a little of all the above. I’m sure that they will say it has to be controlled, so people don’t abuse it. What do you think?
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