Why Cryptocurrencies Are a Bad Choice for Criminals and Money Launderers

Early on, blockchain was known for its alleged anonymity. It proved impossible to attack the Bitcoin network, even with the most advanced quantum supercomputers yet to be developed. SHA-256 hash encryption made money untraceable, incorruptible, and impenetrable. This notion of impregnable anonymity originated with bitcoin but quickly spread to other cryptocurrencies. This, in turn, stirred the notion that cryptocurrencies are a safe haven for illicit activities, criminals, money launderers, and all other bad actors. However, the truth concerning anonymity, like so many other aspects of crypto, is a little more complicated. Pseudonymous Vs. Anonymous An anonymous individual can function or communicate in ways that make them unidentifiable. A pseudonym user can be identified, but their identity is hidden. People can post anonymously in a website’s comments section without logging in. It’s anonymous. The Rock, whose real name is Dwyane Johnson, is an example of a pseudonym, as is any other professional who uses a stage name. Although many cryptocurrencies, like bitcoin (BTC), are more traceable than cash transactions, others, including Zcash (ZEC), Monero (XMR), Grin (GRIN), and Beam (BEAM), were designed with anonymity and privacy in mind. While many transactions take place anonymously and often aid unlawful conduct, privacy is a fundamental human right that governments provide to individuals and is a crucial component of greate...