December 1, 2020

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Criminality in the Cryptoworld

2 min read
Criminality in the Cryptoworld

Cryptocurrencies have not yet fully escaped the feelings of some people who perceive them as something dark with a strong criminal tinge. Some see it as defiance against the merger of government banks, while others merely use it as a means to generate profits while benefiting from their high volatility. Although cryptocurrencies are generally perceived by the public as the future of finance, fear, suspicion and bias still exist.

 

During a recent interview, CipherTrace CEO Dave Jevans spoke about how secure the crypto-ecosystem really is at the moment, and the vulnerabilities that plague crypto, while also opining on what the future will look like.

 

Regarding crypto-crime, Jevans highlighted:

 

“It’s more secure to use exchanges than it ever has been. I still think you should think about managing your own cryptographic keys but exchanges are learning how to manage cold storage.”

 

According to the CEO, while crypto-crimes continues to exist, most of the reported crimes within the ecosystem are mainly to do with fraudulent activities such as insider thefts and Ponzi schemes, etc.

 

Cryptocurrency exchanges are safer than it seems

 

According to CipherTrace’s latest report that analyzed the crypto-industry, a staggering $4.5 billion was lost in 2019 alone. Here, it is interesting to note that out of this amount, only $370 million was lost through exchange hacks and thefts. Approximately 91 percent out of the total loss was the direct result of fraudulent activities.

 

Criminality in the Cryptoworld

 

However, Jevans also highlighted the fact that in terms of the overall use-case scenario for crypto, “the criminal amount on cryptocurrencies is dwarfed by the amount that is done using cash.” When asked whether governments have certain ulterior motives to portray crypto negatively, Jevans remarked:

 

“They’re just not educated. The majority of cryptocurrency is used by legitimate investors, by people trying to buy and sell things”

 

Just recently, noted investor, Warren Buffett, reiterated his long-standing view that cryptocurrencies essentially hold no value and that he did intend to own any in the future.

 

View of CBDC

 

In recent times, many countries such as China, Sweden, and Japan have started discussing the potential value of a CBDC for their respective economies.

 

Regarding the role of cryptocurrencies, specifically developments regarding CBDCs in the future, Jevans said:

 

“But I didn’t get any sense that anyone wants to stop cryptocurrencies and I think CBDCs in my opinion, everyone’s going to have to do one at some point.”

 

Summary

 

Some cryptocurrency investors see it as a safe haven when investments fall elsewhere. Others are afraid and literally do not trust the crypto./AMBcrypto/

What about you?

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