Bitcoin hack record

A new record:

It’s only money, if it’s not your money.  Why is Bitcoin even being mentioned in a privacy blog?  Well, the theory is, financial transactions CAN be made anonymously (in complete privacy) without revealing the identity of the payer nor the payee.  Some hackers want to be paid in bitcoin because they believe their identity will not be revealed.   A traceable payment could reveal the hacker or their accomplice, and those criminals could be brought to justice (in a more perfect world).

The desire for anonymity is helped by privacy advocates, which is great.  However, civil government has an obligation to track down and prosecute criminals of all kinds, terrorists, money launderers, dealers in illicit drugs, so laws exist that require all financial institutions, including Bitcoin ATMs, to identify users of their service.  Only Swiss banks and those in the Caymen Islands, or other “finance refuges” have the reputation of keeping the identity of their customers private.   So when you purchase Bitcoin through your bank or financial institution, you’ve already lost your anonymity.  If you are paid in Bitcoin through that account and convert to cash, say US dollars, would anyone be curious (say the Revenue Service) where that $12 million came from, and are you reporting it as taxable income?

It can actually be very difficult to buy Bitcoin anonymously, or spend it anonymously.  The recent interest in Bitcoin can thus only be attributed to greed, and not a desire for anonymity.

Another article will explore how someone interested in purchasing Bitcoin, might approach that activity in as anonymous a way as possible.  How would you do it?