Is Bitcoin often used to finance illegal activities?
Friday, January 22, 2021
By Austin Tannenbaum
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YES
Bitcoin, a type of digital currency created and exchanged independently of banks, is often used for illegal transactions such as sales of drugs, weapons, malware and illegal pornography. Transactions are typically completed anonymously and much more securely than with cash.
A study published in the Review of Financial Studies found that approximately 46% of Bitcoin transactions, totaling $76 billion per year, involve illegal activity. According to the study, one in four Bitcoin users is involved in illegal activity. The virtual currency’s use has “facilitated the growth of online ‘darknet’ marketplaces in which illegal goods and services are traded,” the authors write.
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