Altcoin News: Study: Fiat Is 800 Times More Used in Illegal Activities Than Bitcoin

July 22, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Analytical portal Messari has published statistics designed to illustrate how justified the critical comments of the US Treasury Secretary and other skeptics regarding cryptocurrency.

Based on data from Chainalysis and the United Nations Office on Drugs and Crime, analysts have determined that for every dollar spent on a darknet for Bitcoin, $800 is received, washed using traditional fiat money.

Previously, this problem was also considered by Europol, whose staff prepared a report entitled “Why is cash still killing?“

Although not every use of cash is criminal, all criminals use cash to launder money at a certain stage of this process, writes Europol.

“The world is cautiously looking at possible abuses of virtual currencies in the criminal sphere, and this report may seem unusual in the sense that it does not cover new phenomena or emerging risks. The money-laundering schemes detected by law enforcement officers are still characterized by the use of mainly traditional methods, in particular, the use of cash.”

Analysts at Messari also note that over the past 10 years, the Federal Reserve has increased its currency supply by 13,664% relative to Bitcoin emissions.

Chainalysis previously announced that the current year could be a record for the amount of Bitcoin payments in the darknet. At the same time, the share of such transactions in the total volume of Bitcoin payments continues to decline. Now they are less than 1% against 7% in 2012.

Author: Marko Vidrih

Images via messari.io