While decentralized currencies have many advantages, they also have some disadvantages.For example, the U.S. government has just seized $ 1 billion With Bitcoin from the dark web.
For someone like me, the first thing that comes to mind when you hear the phrase “dark side” is the sound of James Earl Jones as the Star Wars villain Darth Vader. The dark side. “
After cutting his hand to Luke (thank you, dad!), Bader said he was trying to keep him away from the “light” / good side of the Force and pulling him to the bad side.
It was clearly a difficult sale as Luke answered with a hard no by throwing himself deep into the cloud city below from the aisle.
If you don’t think of Star Wars when you hear “dark side” … well, we’re obviously from different generations, so it’s a shame we don’t know what’s cool.
But in the financial world, you are sure conduct You are reading this now, so know what’s cool.
And we really appreciate your readers.
I’ve put enough butter on it … let’s get to the real point.
Like Force, cryptocurrencies have a dark side … and like Vader, there are many people who are willing to use that darkness for their own benefit.
Take a walk on the dark side
As established in this series, decentralized currencies have many advantages. Seamless transactions from around the world, resistance to inflation and deflation, freedom from geographic exchange rates, protection from bank failures, and more.
However, it also has some drawbacks.
Liquidity, limited functionality, price volatility, and lack of insurance are just a few.
But what is true The scary thing is that some of the strengths of cryptography also Its biggest drawback is that the freedom that cryptocurrencies give us also gives some people a license to do some very bad things.
In November 2020, a news article was reported that $ 1 billion of Bitcoin was secretly transferred from an unknown wallet that had been dormant since 2015.
Of course, it happened in the blockchain, so it was in clear view of the rest of the world, and seeing such a large number move in one shot, people could make their transfer. I started talking trying to figure out if it happened.
Well, someone finally came out to take responsibility … and it was none other than the US government.
And it wasn’t a withdrawal … it was a massive removal of digital criminal companies!
Thousands of Bitcoins were captured from the Silk Road in the Dark Web Marketplace during the seizure. At some point, the site was able to buy everything from drugs and weapons to organs and even people. This operation represents the largest seizure of cryptocurrencies in history. Ministry of Justice.
Former US lawyer David Anderson said of the attack: “Silk Road was the most notorious online crime market at the time. The successful prosecution of the founders of the Silk Road in 2015 left a billion-dollar question.” Where did the money go? ” Today’s confiscation complaints answer this open question, at least in part. $ 1 billion of these criminal revenues are currently owned by the United States. “
Bitcoin is prominently used in many Silk Road transactions due to its unique anonymity and tracking measures, making it ideal for dark web transactions.
Dark web sting
How did this happen?
Now, at some point in 2012 or 2013, a hacker known only as “Personal X” broke into the Silk Road payment system and dominated Bitcoin.
Individual X then agreed to transfer the funds to the US Government.
No one really knows why Personal X did this.
Did they do it for revenge? For fun? Were they civil servants assigned to that mission? Were they the criminals who were arrested and forced to turn it over? No one knows, but nevertheless, at least now we know who has those funds.
By the way, this is crazy …
If the US government had 1 billion Bitcoins in 2013, at the time of this writing, that $ 1 billion is equivalent to 5 million Bitcoins.
Today, 5 million bitcoins will be worth it $ 242.9 billion..
Also note that the month after the seizure, the price of Bitcoin soared by a whopping 499% !!
Is this a coincidence?
But it shows that the crypto is definitely on the US government radar-and it also raises the question of what they are doing with all that Bitcoin !!
I wonder what we are really working on.
Either way, I’m a game!
Ready to ride …
“Everything has a dark side.” -prince
Catch up with the crypto journey so far!
twenty five. Halve: The Secret of Bitcoin Profit
twenty four. It doesn’t matter how safe your money is, it’s never safe enough
twenty three. The next step in our crypto journey
twenty two. Which crypto sector is best for you and for your benefit
21. Elon Musk gives Kryptos the necessary boost
((((For parts 1-20, see the Money Moves article archive. here!!).
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