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Topic: should I be concerned about the history of bitcoins when buying them ? (Read 833 times)

newbie
Activity: 29
Merit: 0
A little knowledge of the past movements will give you an idea of how bitcoin has behaved in the past. This will also make you understand what you must expect from it in the future.
sr. member
Activity: 2296
Merit: 348
Oh, I see you are referring to a different kind of history but at first thought, what you mean are the history like if when did btc start and what is its previous price. On your main concern I think it does not matter at all if you are just a retail investor that only invests smaller amounts but if you are a more serious investor like if you are an exchange, institutions, or whales then I think that can matter somehow?

Most of us retail investors obtain our bitcoins in different sources and there are no real problems that happened to us. Same with money but do you also care if where do you get your money? Or do you think the money in banks are more cleaner?
sr. member
Activity: 2660
Merit: 339
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?
If you use a platform that supports P2P like Binance, I guess that won't going to be a problem since every user must be verified before they can use such feature. So, the platform itself knew you weren't involved because you are another different person/user verified, and it's not gonna get you in trouble.
I like the question, though it has been asked several times but like most of them everyone wants security when it comes in purchasing Bitcoin.
Those p2p sellers also bought btc right? And I think they won't investigate if where the btc comes from before they buy it, that is why the btc that they can sell are already been infected by the btc used by criminals but since you are buying if from someone else or from a verified person, you won't get blamed for that if ever someone will question you that your btc looks suspicious. It was not your problem anymore so don't worry that much.

Usually when a criminal sells their btc, that would be in larger amounts and in almost exchange you will be ask for kyc if you are selling with bigger amounts so no criminals are safe there. That is why it's also safe to buy btc in those kind of exchanges.
newbie
Activity: 6
Merit: 9
Thanks everyone for your contribution to this subject.
hero member
Activity: 952
Merit: 555
This is why fiat would be dangerous at the same method as crypto as well. Because if you stole crypto then it would be bad and you could be caught,

the question now is that how do we differenciate the bitcoin stolen from the one that is not, we could obviously see many whales around making huge transactions of their coins as its vividly seen on blockchain, but the only privacy is security those whales can have over AML challenges is when they don't make use of centralized exchanges in which i believe they understand this and why as well, i think theft in bitcoin or cryptocurrency has been minimize to the lowest extent compared to fiat only if the bearer is mindful of the security consciousness of his wallet keys and other Phishing kinds of malicious attacks that could lead to hacking, else stolen funds should be individuals responsibility for failure to safeguard their coins.

but if you didn't steal the money, someone else did, then you should feel fine about the crypto in your account.

even if you didn't steal any crypto but uses centralized exchange you're not safe, at any point in time one can be bursted, its either the government demand for the user privacy data or the exchange got hacked and loose it's data and assets, Satoshi will not be responsible for any lost in such manner neither will the exchange pay back your coins, we advise to always use decentralized exchange and if needs be for a centralized one, just little part of your assets should be in CEX.
legendary
Activity: 2086
Merit: 1058
i remember in fiat currency the situation whereby the paper notes can be traced through the unique encrypted numbers on them if found with a criminal record or stolen, such can be traced especially when you make such mistake by taking the notes to the bank, one will easily be apprehended and query on the process of the acquisition of the fund till the last culprit is gotten, but we have to understand that this is not applicable in a decentralized currency like bitcoin, though one can be suspected and traced if performing a huge transaction that may alarm the system and making use of centralized exchange can be the process of entry on such user.
That is only valid if you caught it on the criminal. So let's assume that you stole money from a bank, and the numbers were tracked, and they find it on you, they will take it away and jail you. However, if someone robbed a bank, then bought a pack of cigarettes and used it, then you bought a chocolate at the same place and got money in return, then the money will be in your pocket and they can't take it.

This is why fiat would be dangerous at the same method as crypto as well. Because if you stole crypto then it would be bad and you could be caught, but if you didn't steal the money, someone else did, then you should feel fine about the crypto in your account.
newbie
Activity: 20
Merit: 0
Not much. If it just so happens that a certain platform you sent your funds to asks you about where the funds came from, just say you bought it P2P. Though this rarely happens as far as I know. As long as buying P2P is not illegal where you're from.
[Not necessarily. But in my opinion, one should have alternative like other secured investments. Recently, I came across Mallconomy, the future Metaverse with lots of earning opportunities. If you want to know more you are welcome to ask.]
hero member
Activity: 952
Merit: 555
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?

i remember in fiat currency the situation whereby the paper notes can be traced through the unique encrypted numbers on them if found with a criminal record or stolen, such can be traced especially when you make such mistake by taking the notes to the bank, one will easily be apprehended and query on the process of the acquisition of the fund till the last culprit is gotten, but we have to understand that this is not applicable in a decentralized currency like bitcoin, though one can be suspected and traced if performing a huge transaction that may alarm the system and making use of centralized exchange can be the process of entry on such user.
full member
Activity: 1512
Merit: 115
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?
Some countries transact their bitcoin through p2p because they don't have access or connected with their nation central bank. And for countless numbers of time pear to pear has being the means of transaction. You don't need to Trace any transaction you make with the process of p2p, i know that as new person into cryptocurrency you will be careful because of scam. But not is wrong doing that, and if you are not comfortable to transact with people staying your environment, you can use exchanges and process your KYC with them, because exchange p2p is the most reliable one
This is a worrying concern for some as no one wants to fall into any problem with the law and I do agree with the exchange P2P trading. I believe that most of the CEX exchanges have vetted and verified those that trade on their P2P sections so I think this would be less of a problem if you are transacting in that space as I have noticed with Binance P2P especially.
hero member
Activity: 1246
Merit: 534
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?
Some countries transact their bitcoin through p2p because they don't have access or connected with their nation central bank. And for countless numbers of time pear to pear has being the means of transaction. You don't need to Trace any transaction you make with the process of p2p, i know that as new person into cryptocurrency you will be careful because of scam. But not is wrong doing that, and if you are not comfortable to transact with people staying your environment, you can use exchanges and process your KYC with them, because exchange p2p is the most reliable one
legendary
Activity: 3542
Merit: 1965
Leading Crypto Sports Betting & Casino Platform
Well, it will be good if you can have some "digital" paper trail for the transaction you made to buy the coins. So if someone ask you about those coins, you can show where you bought it. Most coins have at one stage been touched by criminals, so it is not weird for you to ask this question.

I push my coins through a Mixer services to "clean" them, but if you are going to do that, just make sure that your local Exchange does not have something in their ToS that does not allow that.  Wink
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?
There have been some attempts in the past to try to take the history of your bitcoins into account and to try to blacklist them, so there is not much you can do about it, after all you cannot make a research about those coins on your own before you receive them, so if you are asked about them when using a centralized service you have no other option but to tell the truth and told them that you got your coins by exchanging them in a p2p trade.
sr. member
Activity: 1330
Merit: 257
DGbet.fun - Crypto Sportsbook
there is no reason to worry it should be because you do it on an exchange, if you are just in case save all data when trading large amounts in case something like what you mean there is evidence that you just bought without any other intent
hero member
Activity: 3066
Merit: 629
Vave.com - Crypto Casino
I am sure I will get my bitcoins, but concerned if they legit or not.
As long as it's from the main network and it's not just another sort of wrapped bitcoin then you're getting the legit bitcoin. You can always check the transaction through explorer on different websites like (https://blockchair.com/bitcoin) and input the address or transaction ID there.
And that will check if it's on the actual chain and the easiest thing to do and know it is by using bitcoin addresses that start from bc1q, 1, and 3.
sr. member
Activity: 2436
Merit: 343
Quote
Re: should I be concerned about the history of bitcoins when buying them ?
well, I believe that was a part of your research but having in a P2P transaction, that is not a problem on your end. Nobody will apprehend you because you buy Bitcoin coming from the person who commits criminal activities or that was involved. And besides, P2P transactions just exist not because people are doing it illegally, this is done for good unless if it was a scam attempt.

But if you are really worried about this, might you ask the sender where it is come from, I'm sure he won't tell you OP that was coming from illegal/criminal activities. Honestly, you are safe OP.
hero member
Activity: 2268
Merit: 789
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?

I do not think so- criminal activity may only be linked when you purchase goods on the internet or under the dark web; and bitcoin is decentralized. This means that all of the transactions that you made cannot be linked or traced on the origin of their existence.

Even if the BTCs you are holding were linked to some criminal activity, I doubt that the government would absolutely characterized it that the current HODLer is the one perpetrating the crime. This is a good question and I have yet to encounter a person or some news that reported such issue.
legendary
Activity: 3094
Merit: 1127
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?
We do have different set of p2p transactions

1. Whether its done via a platform/exchange
2. p2p literally without any involvement

Both scenarios could give out that assurance that you wont really be having any problems in related with
those transaction in speaking about illegal issues or something.
legendary
Activity: 3346
Merit: 3130
If I purchase bitcoins via p2p, can I get some problems if the bitcoins I get were involved in some criminal activity ? If yes then how do I avoid such situation ?

I don't think this will get you into problems, if you deposit those bitcoins to any exchange they will not block your depo. And if you are still paranoid then you can use a Mixing service to Wash your coins.

Another fact to consider is the amount, if you do this with a small amount then there will be no problems, but if you do it with a big amount then the alarms will sound.
legendary
Activity: 2464
Merit: 2094
Moreover if you want to remain more secure while doing BTC transactions, then use mixer for safety.
I have assured him that there is no need to worry too much about the bitcoins he buys on P2P exchanges because the mixer can help him obscure the transaction history. If the OP is in doubt about where the bitcoins are coming from, then he can ignore the seller and not deal with him.

Also if you don't feel purchasing Bitcoins from P2P deals, then give a shot at popular exchanges.
Since the OP seems like someone who likes privacy then I don't think suggesting he buy bitcoin on a centralized exchange is a good idea.
hero member
Activity: 1778
Merit: 722
Leading Crypto Sports Betting & Casino Platform
A short answer can be no because it doesn't matter even if your own bitcoins have bad transaction history. It depends on where you want to use your bitcoins, then you are going to deposit your bitcoins in some wallet belongs to the governments and related organizations where they also ask you for the KYC, they maybe check the last bitcoins transactions from your wallet if they find something dirty regarding your wallet. Otherwise, it doesn't really matter.
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