With all of the financial woes taking place all over the world, consumers and enterprises are starting to look for alternative forms of finance. Some people are even considering going back to hiding money under a mattress, but that is not the most secure solution. In fact, there is a bit of a discussion going on as to why “bad” people don’t put all of their money in precious metals, or even digital currency.

Also read: What Is A Smart Contract?

Gold Nor Bitcoin Are Designed For Criminals

Although neither gold nor Bitcoin is tailored towards criminal activity, they are both often referred to underground schemes. Gold is not a great tool for people who have something to hide, although it certainly has potential to avoid a lot of unwanted government attention. Moreover, bullion is

But those aren’t the only reasons, as gold does not make a good investment overall. No one is saying people should not invest in gold at all, but it is only great up to a certain extent. For criminals, that means access to a money laundering scheme while avoiding [most of the] governmental control. Keeping in mind how large the gold market is, it is easy to hide and sell bullion anywhere in the world. There is very

Bitcoin, on the other hand, is often referred to as the primary currency for Internet criminals. Nothing could be further from the truth, however, as Bitcoin is not privacy-centric nor anonymous by any means. Granted, it is not as public as a bank transfer either, but it far less private than cash or precious metals.

Moreover, internet criminals would face a difficult time converting large amounts of Bitcoin to fiat currency. Most exchange platforms publicly list their wallet addresses, and various Bitcoin community members keep an eye on these balances to spot any illicit activity down the line. The transparent nature of blockchain technology goes a long way in this regard too.

Unlike the gold market, Bitcoin users have slightly different liquidity issues. Most of the trading is taking place across centralized exchanges, which are subject to KYC and AML regulations, removing any shred of privacy or anonymity. Selling large quantities of gold might raise similar questions too, though.  Neither of these investment vehicles is designed for illegal activity, but that is not keeping less smart criminals from using them anyway.

Source: Marketwatch

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