Home Market News Crypto What Does The Russian Hack Reveal About Bitcoin?

What Does The Russian Hack Reveal About Bitcoin?

11
0

Some Russian operatives have been accused of hacking the National Committee in 2016. It has been revealed that they did not use cash or even credit cards to do this and this says something very interesting about the way that they work. They used Bitcoin to gain access. It gives people the chance to make secure payments and when they do this, they don’t have to use banks or even government authorised methods to do whatever they want. What makes Bitcoin very different to other currencies out here is that criminals are able to use it to their own advantage. Bitcoin transaction records have really helped investigators to try and find the Russian agents and they have even tried to cover their tracks by trying to disguise their acts. At the end of the day, what they did is far better than using a briefcase full of money and this could be a very useful ploy for criminals in the future.

When you look at the details of the case, you will find that this is a very encouraging sign. You will find that cryptocurrencies are part of a global movement. They also show how value can be exchanged as well. Anyone can put up a blog on the internet and they do this without having to go through any traditional needs. You can see with ease that cryptocurrencies actually remove control from any financial intermediaries and this is interesting to say the least. When you look at the internet, you will see that cryptocurrencies are not a force for criminal activity at all. You will also find that their legitimacy has not been guaranteed either. Those who work the financial sector or even the governmental sector always act as gateways between the currencies and even the traditional world. This includes the Bitcoin exchange and it also makes it much more transparent. They need to try and adopt some form of mechanism so that it can be used to try and limit any illegal activity and even regulatory evasion as well. When you look at the success of Bitcoin you will soon find that it has been a critical factor to say the least. You will also find that it is a fiat currency as well. The collective trust is all about the community user. Their confidence alone is the accuracy of the ledger and that all Bitcoin transactions are what helps to make the currency very viable. Those who work as law abiding citizens really do want an efficient and reliable way to make payments. Of course, right now we don’t really know who created Bitcoin but we do know that he goes by the name of Satoshi Nakamoto. He released a paper in 2008 and this stated that he has released a great deal about cutting out banks even though it said nothing about trying to evade the law at all.

Cryptocurrencies help to make transactions trustworthy without having to rely on any intermediary or even central banks. At the end of the day, banks know your corporate identity and they also help to keep your transactions secret. Bitcoin does the complete opposite. Identities are private but you do have strings and numbers that are known as cryptographic keys. Transactions are public and anyone can really see how the money flows. This is necessary for the Bitcoin’s own security model. His relies on a public network of PCs and it even works to validate transactions as well. The main issue with criminals is that it is possible for them to reconstruct Bitcoin identities from patterns for transactions. The currency then moves through a huge range of gateways and even wallet systems as well. This makes it much easier for people to use currencies in a way that still speaks to dollars and even in euros as well. The problem here is that these systems are usually centralised and this means that they can be traced. Their admins can also be asked to work with law enforcement if this is required. This is exactly what happened here.

This is also what happened when Silk Road was taken down in 2013. They are an online marketplace that helps illegal transactions and even drugs to be exchanged. BTC-E is a platform of choice for those who are in Russia and the main reason why this was used is because it did not actually collect any identification documents from their customers. BTC-E was later shut down by law enforcement agencies last year so it is not active anymore. These examples show that governments actually have way more leverage over the currency market when compared to what people once thought. The Treasury Department have even released some guidelines to help exchanges to find out who is trading on their platform. The volume of currency that has been obtained from any illegal activity is now five times as much as it once was and this is from a study. There are in fact ways to make the currency market way harder to track. Hiding any transaction costs will add even more cost and it will make the platform even more complicated as well. People are just not interested in this at all and it would even require some insane level of trust from the software developers as well. Transaction validators and even support network organisers are also finding it hard to maintain the service that they are providing as well. The partners would then be responsible if something did go wrong and not everyone is ready to accept this. Sure, there is still a lot of illegal activity that is revolving around cryptocurrency and a lot of it involves a lot of theft from users. Unless law enforcement are actually able to regulate this then this could mean bad things for the market. The main thing about Bitcoin is that other currencies can help to create a trustworthy market and it can do this in a way that could even replace the other currencies as well.

LEAVE A REPLY

Please enter your comment!
Please enter your name here