How Bitcoin Deters Criminals
Bitcoin prevents many criminals from being able to engage in illegal behavior. Because
of the way Bitcoin works customers do not need to reveal personal information to
merchants. This decreases the amount of data available to illegal actors and acts
as significant protection against identity theft, credit card fraud and several other
attack vectors. Bitcoin transactions are irreversible which prevents chargebacks
or frauds and transaction traceability means it is impossible to counterfeit bitcoins.
Additionally, law enforcement authorities have already begun using sophisticated
techniques to analyze Bitcoin transactions in their criminal investigations. So it
may be that the Bitcoin software is not very attractive for criminal enterprises.
Is Bitcoin a bubble? Choices based on individual human action by hundreds of thousands
of market participants is the cause for bitcoin's price to fluctuate as the market
seeks price discovery. Some reasons for this change in sentiment may be a loss of
confidence in the currency, a large difference between value and price not based
on the fundamentals of the Bitcoin economy, excessive press coverage stimulating
speculative demand, fear of uncertainty and just old-