Topic: Why criminals prefer cash (Fiat) on top of crypto? - page 8. (Read 4846 times)

I used to ask myself why hackers are stealing coins that can't be sold or change to Fiat without getting caught, this days address can be traced or tag, binance exchange for example is very good at blacklisting a scammer address, they will keep tracking until the hacker made a mistake one way or the other, smart criminals will prefer Fiat over digital currency because Fiat is less traceable

The only way to avoid not getting caught online is by never changing crypto for fiat, even if you hack or steal digital assets you will still need to sell for FIAT and all platforms that accepts switching crypto to Fiat requires I.D Verifications, KYC is a must, so when address to address are been tracked it will lead them to your Fiat gateway, that will put the person in hot soup

This is exactly the answer there is no way for them to widraw it back to cash without using exchange which it will require kyc and it's easy to track it using their bank account which is way too dangerous compare to direct using Fiat currency.  Cryptk currency as way of payment will only work if they are planning to hold it for long term, means they will not convert it Fiat currency or if ever they do there are persons that will buy them directly using cash without using bank account .

Its obvious that criminal's needs instant money because all their attention is to achieve their objective or aim towards looking at criminals very well no of them like delay, going on fiat currency it's very easy and easier to grab it without much circumstances but going on cryptocurrency especially bitcoin they will undergoes different process in order to actualised their objective towards crypto, it seen as one of the reasons criminal have to isolate crypto and face fiat currency, shall I will say that it's based on individuals who involve as a criminal, and normal without much agitation criminal have to prefer fiat currency because them know it very well.

How would they notice if these people are taking money on cash and not withdrawing it on the banks? They won't be able to track this cash wherever they go while transactions in bitcoin could be tracked as every transactions happening can be seen in the blockchain.

Maybe that is because of their safety, we all know that technology and security are innovated that they can access everything especially illegal activities. We can say that they are using fiat because they are aware that technology can track them. They can monitor the movement of their illegal work if they are choosing fiat as a mode of transaction. There are actually lots of hackers that can access their transactions and also hackers that are supervised by the government. Also, it is depending on the knowledge of a criminal about the knowledge, if they can use it, why not to use it right?

Criminals are used to running their business using fiat currencies. If they will in any way consider using crypto, I am very sure they will need to understand what it is including the pro and the cons. I am very sure many of these criminals will be dealing with a huge amount of money which means if they have it in crypto for ease of transfer, they might end up making use of a centralized exchange that will Require KYC before they can withdraw. DEX could have to be a choice but due to low liquidity, they might have a problem handling and processing a huge amount of money. The issue of the government banning crypto due to wrong used has been emphasized and the chances are small. Every currency has its pro and con including fiat so we cannot because of the cons stop using fiat

The Bitcoin blockchain is transparent.  Information in the blockchain is fixed forever.  The offender can already forget about his crime.  However, the information about the financial transaction is still on the blockchain.  This information cannot be removed from there.  

Riccardo Spagni (the main ideologue of Monero) advises against using Monero to commit crimes.  Yes, Monero is the most anonymous and confidential of all cryptocurrencies.  However, regulators are constantly looking to hack Monero.  Tracking of transactions is possible.  People are frivolous creatures.  They tend to make mistakes and neglect safety considerations.

Therefore, it doesn't make sense to use cryptocurrency to commit crimes if there is cash.

that's different thing. Those so called hackers that encrypt their victim data demand crypto because that's the only way to extort safely without limitation on how far the victims are. But, criminality in real life usually done with cash.

For example drug dealing, they usualy uses cash not bitcoin though there's history of drug dealers caught using crypto

I do not believe in the complete anonymity of any transactions on the Internet. You give cash in your own hands and it is not recorded anywhere, while little is known about cryptocurrencies, although everyone claims to be anonymous. In fact, only the creator of the token knows about the real state of affairs.

Mostly we can see two kind of criminals. One is the high tech criminals and the other is local criminals. These high tech criminals have little knowledge about the technology advancement, but those weren't used on the criminal activities as they haven't used to it. Local criminals keep them engaged on small level of crimes around the locality. So there is very limited usage of bitcoin by criminals.

I'm not sure you have any influence whatsoever on what items criminals use to store their ill-gotten gains. They will use whatever currency they want if it helps them move money around or hide it from government organisations like the police. It's better if all governments work together to stamp out law breaking worldwide if you really want to prevent Bitcoin from being tarnished by rule breakers, but it is unlikely to happen as lots of people turn to crime for "easy money".

Follow the simple logic...on the street level you can deal with cash, but as you go higher it's becoming impossible to make deals with cash! Nobody is carrying or have at home +10M in cash (except some drug lords probably!)
And you can't generalize this matter, some criminals prefer crypto instead fiat, of course if they know how to use it in the right way, and there're many good examples for that!
In the end criminal is just a person that is doing something illegal! As long there's a need for people to do illegal stuff they will do it, and they will find a way to charge it and transfer that money everywhere around! With time, it's getting harder for them (if you know history you know how illegal activities survive despite all those new government measures, rules, jails (all kind of punishments), agencies, spying equipment....) but people will adapt! It's the process of surviving!

They might likely adopt the new technology or maybe its too complicated for them to use crypto currencies. They prefer fiat because its easy to handle it could be untraceable if they wanted too. Majority of them might keep it traditional if fiat system will not change, however it won’t be easy for them to transact fiat anymore if the government will push the use of CBDC to its citizens so a privacy coin could be there last option but the problem now is authorities are starting to crack these privacy coins nowadays.

To be able to use crypto thoroughly, one needs to have some technical background. Average criminals are not tech-savvy enough to be able to hide their nefarious actions when using crypto. They prefer physical cash (Fiat) on top of crypto because it's extremely easy to use, anonymous, and stable. Besides that, criminals can pay with physical cash regardless of catastrophes such as natural disasters, a war, etc. Crypto has many downsides to it, which limits mainstream adoption. At least, the number of legitimate use cases on crypto are increasing at a fast pace. This should allow the approval of crypto/Blockchain tech by mainstream governments. Things would've been worse if criminals used crypto in mass. It would stifle the growth of the industry as we speak.

Nonetheless, time will tell us whenever criminals will continue to use Fiat or switch to crypto altogether. With CBDCs, governments will be able to keep track of every transaction performed on the ledger (which greatly undermines a person's privacy). Since physical cash will no longer exist, the only alternative against government surveillance will be crypto. My guess is that privacy coins will be heavily used for criminal activities in the future. Once that happens, one would expect a full government crackdown on any cryptocurrency with anonymity features. At least, Bitcoin and other non-private cryptocurrencies will be able to survive for long. Privacy coins will eventually fade into oblivion because of the aforementioned reasons. Just my thoughts

I think they are not using crypto because to aquire a large amount of crypto they need to buy it with fiat and there are not many black market holders with large funds to buy crypto from so they need to purchase throught legal ways and that will compromise their identity plus a big portion of the illegal activities are done manually(hand to hand) so cash will make it easier for them.

Fiat money is easy to use anytime, anywhere and it is tangible unlike bitcoin which is digital currency, you can't touch and it always needs internet connection in order to make a transactions and need knowledge how to use it. Criminals don't like a complicated transaction and also if they use crypto, they need to learn it first.

Considering what you've said, yes. I think it would be better if criminals just continue with using fiat. (Better yet, they could stop doing crimes, but that's impossible of course.) I mean, people are just starting to adapt crypto and they're already skeptical about it because of some crimes which makes use of crypto as their instrument. If many criminals adapt it, then people might not accept crypto at all.

Because not every people have the knowledge about bitcoin or cryptocurrency. They usually prefer fiat over crypto just simply because it is easy for them to live or to use it when they escape and hide. They don't even need to convert it, unlike with crypto they need to have gadgets and internet connection to be able to use or transact with it. 

Fiat money is older than bitcoin in the world which many investors are use to fiat money in the area of investment. Many countries never still believe that digital currency is a good investment, that people can use to grow their business in the country. Those countries that bitcoin is not legalized, it hard for such criminals to have access to bitcoin because they don't use to bitcoin in the country. Many criminals  are use to fiat money which they have reduced many investors in the community.