Bitcoin Is Traceable! [BTC Privacy Myth Debunk]


today we’re gonna be telling you
something that people believe about Bitcoin that’s absolutely not true this
is the biggest myth that people believe about Bitcoin. stay tuned welcome to Bitboy crypto your
one-stop-shop for Bitcoin and crypto news we got all kinds of contest details
going up above me here in a few seconds make sure you guys check all that stuff
out so here’s the thing guys today we are gonna be looking at what is the
biggest myth about Bitcoin and it’s pretty simple guys I recently did an
interview with eight different people where I went to our local MLB team the
Atlanta Braves Central Park interviewed people and asked them
whether they would rather take cash Bitcoin or gift cards it was five
dollars in cash ten dollar gift card or fifteen dollars in Bitcoin I’ll put the
link to that video above so you can check it out it’s a really cool video
but something else came out of that video that I realized is that yes that
was a fun little social experiment and we’re gonna be doing a lot more of those
on the channel so I hope you guys enjoyed that content seem to be
well-received however I really saw that people believe something about Bitcoin
is not true almost every single one of the people that we interviewed either on
camera or off camera they said the same thing what is Bitcoin what is
cryptocurrency and they all said it is a digital currency which it is it is a
digital currency but they almost always said the next thing they said and it’s
untraceable there’s this idea that bitcoin is not traceable however that’s
a myth and some of you guys may have heard this maybe you’ve heard bitcoin is
traceable but you don’t really know what that means and maybe others of you
thought that your transactions were completely private and safe and I’m
gonna explain to you why they are not and how we’ve seen that occur across the
world in different ways and then what could possibly be done about it
so here we go guys is Bitcoin traceable so one of the most commonly held beliefs
is that people believe bitcoin is traceable so at one time it was it was
untraceable because there was not enough personal information known about people
that owned Bitcoin if there were exchanges they did not do kyc wallets
had really nothing attached to them however that has really changed
dramatically now in the early days of course you probably have heard about
ross ulbrich and Silk Road it was a website on the dark web where you could
buy and sell illicit things illicit substances weapons all kinds of stuff
activities services yada yada yada and of course Ross ultimately went to
prison is serving longer sentence than El Chapo which is really crazy but it is
true and you know that was a lot of the Bitcoin transactions during that time
I’m quick to tell people I got into Bitcoin in 2012 however I did not come
through Silk Road like a lot of people during that time did I did through
another purchase of some software so you know the thing is is at that time 44% of
Bitcoin transactions have been estimated to have been for illicit activities so
yes in the early days of Bitcoin that was a thriving business model for
Bitcoin however over the last couple of years that number has dropped to as low
as 1% some people say the answer is why well because Bitcoin is traceable that’s
exactly why this cash is safer to use it’s much more you know safe for those
kinds of transactions because cash really is untraceable in a lot of ways
but bitcoin is now what has happened a Bitcoin that’s made it traceable well
absolutely nothing there’s nothing that’s actually happened to the Bitcoin
code there have been some things that have happened to the code but nothing
that is made Bitcoin more traceable or less private now in the future something
that could be done about this if we did want to you know make Bitcoin traceable
or untraceable again would be to add a new kind of protocol a privacy protocol
that can make transactions private I’m gonna explain to you in a little bit why
I don’t think that will happen but right now that’s not the case
there are even companies like channel says in cipher
Trace that specialize in finding these you know bad actors in the world they’re
using Bitcoin and other cryptocurrencies addresses for negative things so there’s
actually companies out there actively trying to track hackers addresses drug
smugglers addresses you know human trafficker addresses all of those things
so it’s not a very you know fruitful system for people like that to take
advantage of anymore so why is this what has happened we’ve
got these companies that doesn’t ask a question or answer the question how has
this happened well kyc regulations have changed everything
so is adoption rises the scrutiny rises the regulations that are expected rise
and that has led to know your customer procedures known as kyc in which
customers had to fill out forms show documents
hold up passports and pictures of their face and things like that that’s me with
my face I don’t know why did that that made no sense however it is true people
have to do that they have to send that stuff in to a lot of these companies so
right now there are possibly or they’re estimated be 27 million Bitcoin
addresses that actually hold Bitcoin now out of that 27 million several million
of those are at coin base and coinbase knows or coin base requires know your
customer procedures kyc so we know there’s several million addresses right
there that already have names associated with them the government is coming to
these exchanges and asking for the information because the government knows
this is like a big brain teaser if they can just kind of solve what this address
is and who this address belongs to over time they can eventually figure out I’m
not gonna say the majority of the Bitcoin addresses but a huge amount of
them and if they target an address and want to know exactly who this is they
will probably be able to figure it out by tracking back the incoming transact
transactions and those addresses and the outgoing transactions in those addresses
you can kind of think of it like a sweater it just has a small thread it
just needs a small run in it then if you just pulled
and keep pulling and keep pulling if you have a sweater you know it will totally
wreck it it will destroy the entire sweater and that is what the government
is trying to do with these addresses not necessarily destroy the Bitcoin network
but by pulling it threads here there they’re able to unravel entire webs of
crime syndicates and hacker groups they’ve done this frequently we just had
it it just happened three Chinese nationals have their
bitcoin and litecoin addresses basically revealed and blacklisted so any any
address that is sent to one of those addresses will receive from one of those
addresses is now a target so is that a bad thing they’re drug smugglers they’re
you know money launderers no obviously that’s not a bad thing there’s also
another you know or in unto itself it’s not a bad thing there’s another
situation that happened called the Sam Sam attack which was ransomware that was
dumped on cities across America including my hometown of Atlanta and
that they basically in exchange for Bitcoin would release the computer
systems and they were docks by the Department of Justice they gave their
Bitcoin addresses and their names so there are Iranians and and gave as
much information about them as possible and warned people do not do anything
with these addresses so the fact is guys bitcoin is traceable there is nothing
about it at this point that makes it untraceable now will we
see it in the future will we see Bitcoin once again be
private I don’t believe so while there are talks of adding privacy protocols
such as nimble Wimble to Bitcoin I don’t think we’ll see that because that will
provide much or that will bring much more scrutiny on Bitcoin and while we
know right the Bitcoin you can’t ban it you can’t stop it it’s open source
there’s just computer code we know all that however the people who own it can
be targeted and I think that the Bitcoin community might be willing willing to
take that trade-off at this point where we’re at in the political world and the
globe you know global uncertainty will take that trade off in order to keep the
scrutiny off of individuals because if people own bit
and they know the government is gonna come after them for owning it if it’s
basically a privacy coin which is what a privacy function would you know kind of
put it in that basket even if it’s optional then I don’t think that’s what
people want people don’t want to see that added scrutiny where basically the
government is coming after people to own Bitcoin that is going to definitely
prevent adoption that’s definitely gonna prevent people from wanting to get
involved in Bitcoin and cryptocurrency and that would also once again make it
much more you know much more easily used in illicit activities so we’re always
fighting this battle of wanting freedom wanting decentralization and also
wanting to be free or one it worked between wanting to be free in adoption
right between decentralization and adoption that’s what it boils down to we
probably at this point in history are not going to be able to have both we’re
not gonna be able to have full privacy and decentralization where none of our
transactions are ever tracked and nobody knows what we’re doing and adoption
unfortunately those two things are not gonna go hand-in-hand at this moment
however I do think that we do have the responsibility in the crypto community
to educate people that are outside of the community and let them know like
when someone says oh yeah that’s that untraceable money correct them say no
actually it is traceable there are privacy coins there’s a lot of you know
scrutiny and regulation on or probably coming regulation on those but Bitcoin
itself it actually is traceable now you may not want to go into the fine details
and explain it all to him but the fact is we have to educate people on what
exactly is true and is not true with Bitcoin so Bitcoin being untraceable is
the biggest myth I have seen people believe about Bitcoin so you let me know
what do you guys think do you guys think that one day we will see Bitcoin being
private again that we will see you know some kind of protocol added to the to
the code to make that happen or do you think we’re just good with where we’re
at it’s okay if it’s traceable it does prevent crime syndicates and things like
that and you’re willing to take that trade off let me know drop that down in
the comments below BitBoy out.

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