Bitcoin Is “Pseudonymous” And Not Anonymous As Authorities Continue To Track BTC Transactions
A U.S based finance reporter that concentrates more on Cryptocurrency disclosed that her conversation with an FBI agent has reveal that the usage of Bitcoin transaction in the black market has dropped drastically practically due to the fact that officials can now track transactions.
Russo got engaged with the official in panel discussion at Bloomberg conference.
The FBI official who administered cryptocurrency and black market cases disclose to Russo that in the early days, black market account for about 90% of all Bitcoin [BTC] transactions, but at the moment, only 10% of the Cryptocurrency transactions is used in the black market and the rest are mere assumptions.
“The evasion has really come down from where it was in the early days… So we’re seeing very little, you know, fundamental use for Bitcoin like as it was intended as a digital money,”
Russo added that the FBI agent said that majorly, Bitcoin as a currency is used for transactions in the black market space, and the volume of its transaction will surely spike with an upsurge in market speculation. Thus, with no effect on the 10% of people who use the currency for purchase goods and services.
Evident of this, there are chances the level of Bitcoin’s usage in the black market can be maintained or rather experience growth with time.
“Its like, black market transactions and money laundering and all of that are still a bigger use case for Bitcoin than remittances and cross-border transfer something more like legitimate use cases,”
Calling for improvement on Cryptocurrency and blockchain technology in general, Russo believes that Bitcoin is kind of unwieldy and not competent enough for mass adoption.
While it is now clear that transactions on Bitcoin can be traced and tracked, the FBI agent noted that the opportunity gladdens authority as it makes it easy for them to clamp down on transactions related to the black market or money laundering.
Camila concluded that the reality about Bitcoin and digital currencies is far from people’s thought. Contrary to people’s sentiment that Bitcoin’s transaction is unidentifiable and could not be easily traced, Camila said digital currencies were actually “pseudonymous”, and it is easy for law enforcement agencies to track the IP address of the transactions.