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On Friday, when the price of Bitcoin fell about 6% against the US dollar, several reports claimed that the dominant cryptocurrency has lost value due to bomb threats.
A report by Business Insider Australia, for example, said that as a result of an explosion of bomb threats in New York, the price of cryptographic assets has undergone a correction.
Wrong argument against Bitcoin
A common misunderstanding that Bitcoin (BTC) by nature is anonymous or impossible to trace simply is not correct.
As a consensus currency, Bitcoin relies on a decentralized network called a blockchain supported by an open source community of developers, miners and node operators.
When a miner approves the settlement of a transaction by including it in a block, the transaction is transmitted to the public blockchain network via nodes that transmit information across the network.
Through the use of the public blockchain network and blockchain explorer tools, anyone on the network is able to track, track, evaluate and analyze portfolios that receive a suspicious transaction.
Some startups like Chainalysis place tags on certain portfolios or transactions that are said to be linked to criminal operations and follow the trail. If a tagged portfolio sends a transaction to a fiat-to-crypto enabled Know Your Customer (KYC) exchange, authorities can ask the exchange to freeze the funds until the investigation ends.
Last month, when a first coin offering (ICO) that raised over $ 20 million turned out to be a scam, the biggest traditional media channels in South Korea informed Upbit, the biggest cryptic exchange of the country, on the situation. Almost immediately after receiving the information, Upbit froze the wallet and the funds it contained.
The inability of the scam operators to quit their holdings in Bitcoin eventually led the criminal group to plead guilty to the authorities and reimburse investors affected by the scam of the exit.
In the case of New York bomb threats, in which individuals were asked to pay a Bitcoin ransom, the transaction can be traced back to the group that issued the threats if the group ever attempted to convert the dominant cryptocurrency into the US dollar.
The NYPD stated in an official announcement:
"Please be informed – an e-mail containing a bomb asking for payment of bitcoins is circulated, while this email has been sent to several locations, searches have been conducted and no DEVICES have been found."
Moreover, if the bomb threats caused the price of Bitcoin to decline in an unlikely situation, the closure of the investigation would have brought the value of the asset to recover because it did not detect any devices connected to bomb threats.
Bad narrative
Most of the criticism of Bitcoin related to the potential use case of property in criminal cases remains a weak topic because the infrastructure around the asset class has strengthened and it has become almost impossible to convert BTC into USD without activating KYC and Anti-Money Recycling Systems (AML).
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