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by danuker 1470 days ago
The way I use Bitcoin is as a personal defense against hyperinflation. I find this very valuable.

Also, apparently people pay a lot of transaction fees, therefore the network must be offering at least that much in benefits.

What examples of terrorism or other illegitimate uses have been financed through Bitcoin? How much damage have they caused to society?
1 comments
300bps 1470 days ago
Without Bitcoin, Ransomware would essentially not exist. With Bitcoin, 37% of global organizations said they were the victim of some form of ransomware attack in 2021.

Even more statistics here:

https://www.techtarget.com/searchsecurity/feature/Ransomware...

Beyond that, there are plenty of inflation hedges that don't require massive damage to the environment. Look into Series I Savings Bonds from TreasuryDirect.gov. Currently yielding 9.6%. There's gold, silver, productive assets like stocks and rental properties.

I think Cryptocurrency is one of the worst hedges against inflation anyone could come up with.

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danuker 1470 days ago
> In first six months of 2021, there was $590 million in ransomware-related activity

Well, in the same period, there were about $900 million (edited; I had it wrong the first time, sorry).

https://www.blockchain.com/charts/transaction-fees-usd

A lower bound of the benefits provided by the network (the transaction fees paid) is 50% higher than the ransomware. I am surprised it is that low, and am sad that the scammers are so successful.

But at what point does banning something become warranted? Roads, planes, cities, and spoons are also used by criminals. And "it is better that ten guilty persons escape than that one innocent suffer."

I'd rather argue that paying ransoms should be illegal, since it amounts to directly financing criminal activity.

> gold, silver, productive assets like stocks and rental properties

I also own gold.

I live in Romania, not the US. About assets linked to my country: their value would be severely affected in a hyperinflation. Look at Venezuelan real estate: https://www.numbeo.com/cost-of-living/historical-data?itemId...

Also, confiscations could extend to more paper assets, not just foreign money:

https://www.forbes.com/sites/timworstall/2016/12/12/venezuel...

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300bps 1470 days ago
It isn't just ransomware. It's money laundering, terrorist financing, drug trafficking, human trafficking and so much more.

Think about it for a second - of those $900 million in transaction fees, how many of them were transactions involving legal vs illegal activities? Anyone involved in legal activities would have a much easier time and lower fees using ACH, wire transfers and other methods.

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danuker 1470 days ago
> Think about it for a second

Well, that is upsetting me. I am profoundly disappointed, but I think you have a serious point.

I will look for some more data on illegal activity. I hope the data is not accurate, but I would only be lying to myself if I refused to believe reality.

I accept that the lower bound of the value of the network does not surpass the illegal activity. But most of the volume should still be presumed innocent.

I see an estimate of $14B of volume was illegal: https://en.wikipedia.org/wiki/Cryptocurrency_and_crime

But that only makes up 0.15% of the total 2021 volume: https://www.wsj.com/articles/cryptocurrency-based-crime-hit-...

Thank you for your patience.

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