What's going to happen to Bitcoins made through fraud?

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Discussion Overview

The discussion revolves around the fate of bitcoins generated through fraudulent activities, particularly those associated with drug cartels and hackers. Participants explore various methods of laundering these bitcoins, the implications of bitcoin's fungibility, and its potential as a tool for money laundering. The conversation also touches on the broader context of bitcoin's value, its comparison to other speculative assets, and the future of cryptocurrencies.

Discussion Character

  • Debate/contested
  • Exploratory
  • Technical explanation
  • Conceptual clarification

Main Points Raised

  • Some participants propose that bitcoins generated through illegal activities may be converted into other assets like gold or laundered through traditional methods.
  • Others argue that bitcoin itself serves as an effective laundering instrument due to the difficulty in tracing transactions.
  • A participant notes that while bitcoin transactions are public, tracing ownership of wallets can be challenging.
  • Concerns are raised about the speculative nature of bitcoin, comparing it to fads like Beanie Babies, and questioning its long-term value.
  • Some participants highlight the potential of blockchain technology beyond just monetary applications, suggesting it could serve as a decentralized trust network.
  • Disagreement exists regarding the utility of bitcoin as a currency, with some asserting its volatility undermines its usefulness.
  • There are claims that a significant portion of bitcoins is held by a small number of individuals, impacting broader adoption.
  • Participants express skepticism about the future of bitcoin, suggesting that better alternatives may emerge.

Areas of Agreement / Disagreement

Participants express a range of views on the utility and future of bitcoin, with no consensus reached. Disagreements persist regarding its value as a currency, its role in illegal activities, and the implications of its speculative nature.

Contextual Notes

Participants reference various sources and sentiments regarding bitcoin's profitability and its association with illegal activities. There are unresolved questions about the impact of quantum computing on bitcoin's cryptography and the inherent limitations of its transaction processing.

  • #31
BTC is at 9200 USD. Spend 'em if you got 'em.
 
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  • #32
Perhaps worth mentioning that Isaac Newton first made a lot of money in the South Sea Bubble, cashed out, watched it go up more then put all his winnings and then some in and got wiped out. The moral is intelligence offers no protection against the psychology of bubbles.
 
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