Cryptocurrency is a virtual situation that has grown in popularity over the last several years. Cryptocurrencies have seized the globe by storm, creating headlines and transforming the way we look to the future, with Bitcoin leading the push. Cryptocurrencies are therefore the new age currencies that will change the future.
What are Cryptocurrencies?
Satoshi Nakamoto created Bitcoin, one of the earliest cryptocurrencies, in 2008. His product’s major feature was the lack of a central server. Rather than relying on a single huge server to monitor all transactions and avoid double-counting, elements of this were delegated by Nakamoto.
Each Bitcoin user, referred to as a peer, is given a job. Cryptocurrency’s most ideal feature was that it was decentralized, which allowed people to transact from anywhere and at any time.
Cryptocurrencies are comparable to actual money, only they are made out of data rather than banknotes and coins. To avoid inflation, some requirements must be completed to obtain the currency. All cryptocurrency transactions happen through blockchain, which is also a great revolutionary technology.
Investing in cryptocurrency might be incredibly hazardous, but it may also yield substantial returns. Some individuals prefer it over credit cards because of the privacy it gives, while others prefer it because of the lack of fees and regulations.
Cryptocurrency is also used for unlawful activities such as people and drug trafficking, aggravating global issues.
Human Trafficking and Cryptocurrency:
While numerous governments continue to deny it, human and drug trafficking have become a global business, with sexual abuse accounting for 79 percent of instances and forced labor accounting for 18 percent.
Children make up around 20% of all trafficking instances, though this ratio climbs in several African nations and Asian regions. Although the term “trafficking” implies travel between nations, the bulk of exploitation occurs inside a single nation, with intra-regional and internal trafficking being the most frequent types of human trafficking today.
Due to its lack of linkages to governments or international banks, cryptocurrency has the potential to drive the trafficking industry. The Bitcoin market was worth more than 250 billion dollars in January 2018, and the market for other cryptos was about 400 billion dollars.
Although the quick expansion of cryptocurrencies may not appear to be a concern, it has become one since it is being employed in unlawful activities. The use of bitcoin in unlawful activity has caused regulatory issues since bitcoin allows users to remain private.
Bitcoin, as it is a completely digital currency, leads people who are into these unlawful activities, to remain absolutely anonymous and to carry on with their business with no interference from the law. You can call this a disadvantage of cryptocurrency being a decentralized currency, where there is no central body that regulates it
What is the current situation around bitcoin and human trafficking?
- Bitcoins enable human traffickers to purchase and sell women and girls for sex anonymously and without fear of legal penalties.
- Despite its shady history as a conduit for illegal industries such as human and gun trafficking, bitcoin is becoming a more acceptable form of payment, with retailers in major worldwide cities now accepting it as legal cash.
- Users happily accept the very erratic currency conversion rate in return for the concealment of their unlawful transaction. Btq website allows users to trade in cryptocurrencies as these are used to pay for everything from narcotics to sexual services.
- The lack of transparency in bitcoin transactions has aided the growth of illegal marketplaces while also making it difficult for law enforcement to rescue sex trafficking victims and convict traffickers. Through online financial transactions, drug cartels may quickly launder money and child sex traffickers may operate in relative anonymity.
Therefore, as much as we would like to believe that cryptocurrencies and bitcoin are the new future of transactions, we have to keep in mind that it leads to a huge problem for many lives around the world.