Glenn Hutchins dismisses belief about Bitcoin's use for criminal activity

Glenn Hutchins, co-founder of Silver Lake, dismisses the long-held belief that bitcoin’s primary use is for criminal activity. Hutchins explains how this assumption ignores the immutable nature of the blockchain technology on which bitcoin is built.

“In the US, 80-90% of $100 dollar bills are used for organised crime and tax evasion and there’s a very good reason for that - they're untraceable and fungible,” he says.

“Bitcoin, however, leaves a permanent, unalterable record, hence why almost all criminals using it are caught. It is fundamentally wrong to say that Bitcoin is mostly used for crime.”

Bitcoin, nevertheless, leaves a everlasting, unalterable file, therefore why virtually all criminals utilizing it are caught. It’s basically fallacious to say that Bitcoin is generally used for crime.” Analysis by blockchain knowledge agency, Chainalysis finds that illicit exercise made up 0.34% of cryptocurrency transaction quantity in 2021, down from 2% the yr earlier than.

Janet Yellen, the US’ new treasury secretary, talked about this in her affirmation listening to, saying that the the federal government should look to encourage using cryptocurrency for respectable functions, whereas ”curbing their use for malign advert unlawful actions.”

Criminals may be drawn to the greater anonymity of cryptocurrency offers compared to other digital forms of money, but be put off by its unstable value. A drug dealer, for example, would not want to have to speculate on the price of bitcoin while selling his wares.

By addressing during the panel discussion session at Davos, Andrew Bailey governor of the Bank of England, states that the opportunity of any forex getting used for prison or nefarious exercise should stay a consideration in figuring out how regulatory frameworks are to be established, which might be essential to drive adoption by way of stabilisation of worth.