Topic: Why criminals prefer cash (Fiat) on top of crypto? - page 7. (Read 4823 times)

Indeed. CBDCs will become the end of an era for privacy. Governments and central banks will gain greater control over people's lives like never before. When that happens, criminals will have no choice but to rely on privacy-oriented cryptocurrencies in order to stay afloat. They will be forced to learn how to use crypto in order to continue with their illicit activities in the mainstream world. My guess is that governments will ban the usage of privacy coins because of their anonymous nature. But the decentralized and open source nature of crypto, will allow anyone to get access to it via the use of other methods. This will enable an "underground economy" that's truly unstoppable by third parties.

Nonetheless, Fiat will continue to be the top currency of choice for criminals because it's stable, anonymous, and widely used in the mainstream world. This will be the case until governments and central banks introduce CBDCs to the world. At least, we won't have to worry about crypto being "outlawed" in a few years from now. The switch from physical cash to digital cash will not happen overnight. It's a process that will take decades before it becomes a reality. As long as crypto has the "green light" from mainstream governments, there should be nothing to worry about. The more people use crypto legitimately, the higher the chances of being approved by the government will be. It's best for criminals to stay away from crypto as possible for the sake of the entire industry. Just my opinion

there are criminals who use crypto, they are Scamer. don't we see him often? like some Airdrop and ICO projects. but after they get profit they more often change their funds to Fiat, maybe because their target is only getting quick profits, not investment and this is supported by still a few shops that accept crypto as payment.

Simply, the controls.  For a criminal, the first problem that arises when he has a large sum is how keep it.  However, if he went to the bank to deposit this sum, the banker would be forced (normally) to ask where those funds came from.  This is why the criminal uses cash, because instead of depositing it in the bank, he can go (for example) to a jewelry store and buy, in cash, a Rolex which still remains a luxury item that maintains its price over time.  This obviously for the common criminal, certainly not for Tony Montana

Even as you don't believe in complete privacy crypto offer, I am very certain criminals always have a way of selling their coins and cash out fiat without worries. Thus is why regulation bodies are still against the use of montero because that sh*t is so anonymous and used most of the time in dark webs.
There are instances that these criminals sells the complete wallet that contain priva6keys to this coins they receive from innocent people and conbert them at discount to receive monero.

Because it's easier to give the local low-level blokes a pile of cash than teach them how to safely do it with Bitcoin without getting any unwanted attention.

Internet anonymity is one of the biggest myths around...

I think that the simplest answer is about the necessity during the Chrismas. We know that on Chrismas, we commonly spend a lot of money to buy some necessities like food, ticket, decorations, and other necessaries. In this case, not all merchants accept crypto as a payment method. And many people will need more money to cover the outcome. Therefore, they will prefer to sell some of their crypto balances.

Having always access to your money is key for some criminals. They might be on the run from the police and having fiat cash under the mattress might be the best way to quickly move around. Especially in third world countries where access to computers and Internet might be limited.

People aren't much aware of the cryptocurrency market. The fiat usage seems to be easy accessible than cryptocurrency. As per my knowledge, usage of fiat makes the path clear and no back tracking is possible. In my country, politicians just go for staking up the traditional fiat, to avoid the taxation. Finally it goes wasted when the government demonetize the fiat system.

The traditional fiat is more widely accepted around the world than crypto, and we know all the criminals, scammers and corrupt leaders prefer their money in fiat, since it's much easier to spend just about anywhere, whereas if the money is in crypto you have to be taking it out but by bit to avoid any suspicious activity, for this reason criminals prefer laundering money in fiat instead of crypto.

Top crypto has a better value because of its popularity so it's no wonder when criminals choose cash that is at least worth the top crypto, I don't really realize that there are still many criminals who choose cash because most criminals who are in the news at that time at least they chose or using top crypto such as bitcoin as ransom. Well, I guess that's not something of a concern, because I guess criminals will choose anything as long as it still has value then they'll use it.

I believe it's more easier to escape with fiat than crypto, it's easy to hide all tracks with Fiat but not with crypto, it's why I'm not buying the decentralized idea of many crypto projects, if you can track any crypto projects what makes them decentralized then?

I think that soon fiat money will change, a tracking system will be introduced in it, something like an NFC chip. Every time a banknote goes through the cashier, there will be registration in the global financial system. This will end the anonymity of fiat money. The governments of the countries are constantly "tightening the screws" for everything that is anonymous in this world, banknotes are not monitored in any way at the moment, there is only a number on each of them, but it is not tracked anywhere.

How did you even know that the criminals prefer cash or fiat over crypto?
We already have so much criminals in crypto so how could you be so sure that they still prefer Fiat?

Exactly. Volatile prices is what's preventing crypto to be used as digital cash. Criminals want something that's stable, anonymous, and widely adopted by merchants and businesses alike. Fiat is the perfect option for criminals as it meets said requirements. Privacy-oriented cryptocurrencies are good for preserving anonymity, but they're volatile in price and lack merchant acceptance in the mainstream world. As long as this is the case, Fiat will continue to be the #1 choice for criminals worldwide.

At least, crypto will be able to enjoy some level of legitimacy in the mainstream world. The less illegal activity on the Blockchain, the better it'll be for crypto's chances of approval by mainstream governments. The day when criminals adopt crypto in mass, will be such that'll lead towards crypto's demise. Thankfully, most cryptocurrencies have a transparent blockchain ledger in order to help governments fight crime. The real issue will lie on anonymous cryptocurrencies themselves (like Monero, Grin, Beam, etc.). It may turn out that these coins will become de-listed from every crypto exchange, leaving people with no choice but to use them "under the radar". Regardless of what happens in the future, crypto/Blockchain tech's decentralization will allow it to survive for years on end. Just my opinion

Here are some of the reason criminals prefer cash on top of crypto:
1) Easy to collect: Fiat money is very popular in the country which is very easy for criminals to have access to someone money.
2) Knowledge: Many criminals don't have the knowledge of crypto, that is making them to avoid crypto than to go after the money  which they know very well . They know how to spend the fiat money easy than crypto.
3) Uneducated: Most of the criminals are uneducated which they don't know how to use crypto to get rich because they don't know  how to operate digital currency. Many of them are use to fiat money to do any types of transaction in the country.

This is because when you need to transact illegally through anonymous channels, you're not as concerned with price fluctuations of the currency as you are with the transactions being anonymous. Retail consumers care very much about the price fluctuations of the currency they're transacting in, which is exactly why bitcoin is currently one of the worst currencies for commerce. It simply cannot hold a stable value, and nobody can have any confidence what it will be worth next week, which is the primary function of a currency- to hold a stable and predictable value.

I believe that first of all it is necessary to take into account the fact of what kind of criminal business we are talking about. If we are talking about the sale of weapons or drugs on a large scale for millions of dollars, and not retail trade, then it is possible that the cryptocurrency is used very successfully. But in retail, all customers are unlikely to be familiar with cryptocurrency.

That's certainly true, mate. Physical cash will always be the leading choice for criminals, because of its anonymous nature. Not to mention, it's always stable in price. Criminals will need to exercise extreme caution when using crypto in order to avoid leaving any trace that would create a link to their identity. While there's already a solution for full-fledged privacy on crypto, it's somewhat complicated for the average person to understand. I doubt criminals will take the time to study crypto in order to use it for their nefarious actions. As Fiat is much easier to use than crypto, it'll continue to dominate the "underworld".

At least, crypto land will be able to enjoy legitimate use cases in the mainstream world. The less illegal activity there is on crypto/Blockchain tech, the better it'll be for its approval by governments worldwide. These entities will give crypto the "green light" as long as the majority is contributing towards a good cause. The day when most people conduct illegal transactions on crypto, will be such when governments crack down on the entire industry. Considering that the number of malicious actors are slightly reducing on the crypto/Blockchain space, it shouldn't be long enough before the whole industry is legitimized. I wouldn't worry about criminals on crypto, as most blockchain networks are open for anyone to explore. Governments can simply track & trace transactions on transparent blockchain networks like Bitcoin and Ethereum in order put illegal activities to rest. Just my thoughts

There may be several reasons for this.  In general, of course, cash is less traceable than cryptocurrency.  Also, not all criminals are well versed in cryptocurrency.  Therefore, they are simply afraid to use it.  On the one hand, they are afraid that they can be identified, and on the other hand, that they will not be able to cash out the cryptocurrency in the end.

Fiat in the form of cash is surely less traceable than crypto, but then there are huge risks, for cash to be used they have to be physically transferred from one place to another which involves lots of middle men which can cause more problems for them than simply using crypto and using a bunch of coin mixers to prevent being caught. Ultimately when they sell they might try to sell through peer to peer exchanges!