Bitcoin Is The New Currency Of The Underground

Trying to bank when you are a criminal is not as easy as everyone thinks. In the past when you wanted to open up a bank account you could do so with a minimum amount of effort. It did not take much to go down to the bank, have $25 on your person and then sign up for account. But then the terrible events of 9/11 happened and everything changed. What was once easy before became a lot harder to do. If you wanted to open up a bank account in this new era then you needed more than money and your word. You needed to have the proper identification forms and several other items that would help prove who you were.

underground-currency

And when you need that much information it is hard to try and use the banks for anything criminal. In the past they had a bunch of internet banks open up. But 9/11 changed that as well. When the new regulations passed most of these banks could not afford to stay open anymore. Any way that a bad guy had that allowed them to be able to keep his dirty money in a bank were now gone. If they did do it they would have to use a fake name and profile and hope that it did not get shut down after awhile. The closest thing that we have to a major online only bank, Paypal, has a lot of regulations as well. They are very quick to shut your account down if they think that any fraudulent activity is going on. So if you are bad guy you are looking for a different way to be able to get rid of the money that you made. What way can you now go?

Many of these people have been finding Bitcoin as a good way to cash out all of the illegal money that they have made. Bitcoin is a new technology that is an attempt to have a digital only currency floating around the web. There are people out there who hate the monetary system as it is now. They wanted a change and so they came up with the Bitcoin system. And it turned out that the technology caught on very quickly. It caught on so quickly because they were not the first people to hate how the modern monetary system now works. So they all gathered together and in the last few years the Bitcoin technology has started to really pick up a lot of steam.

And like we said earlier in the article, it is not going unnoticed. The bad guys are started to be attracted to the bitcoin technology as well. With very little government oversight they are able to be paid for their deeds in bitcoin and then cash out to their local currency. They now are able to transfer their money in a normal way and no one is the wiser.

When you are talking about new and revolutionary technology like this, it is hard for the police or anyone else to monitor it. So you are able to get away with a lot because you know how to use cutting edge software. Just look how long it took for the music and movie studios to be able to catch up with pirating technology.

Keep in mind, just like with most other technology, Bitcoin itself is not bad. There are more legitimate people who use the software than there are criminals. But the criminals who do use it are getting away with a lot since law enforcement is not able to keep up.

About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.

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