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When addicts run out of their meds, they are frequently cash-strapped. For them, dealing with an online drug dealer not only means being able to order their drug of choice discreetly but also saving the time and cost of travelling to meet this dealer.
7 Ways how bitcoin helps online drug activities are discussed here
1. Bitcoin helps in Unknown Purchases
Bitcoin has the characteristic of letting its users make transactions without giving away too many details about themselves.
This allows people looking to buy illegal substances to remain anonymous.
Along with the usual precautions that drug traffickers take, such as using shipping services that don’t require a signature, ordering drugs on the darknet, or using fake IDs, they can integrate bitcoin into their transactions.
2. Bitcoin helps in Cross-Border Transactions
Drug dealers who target domestic and international audiences can use cryptocurrency as an investment tool.
Buying bitcoins with dollars allows drug dealers to diversify their portfolios without opening bank accounts in multiple countries.
3. Bitcoin Helps Avoid Currency Exchange Issues
Buying illegal drugs online avoids not only exposing oneself to physical dangers but also removes the concern of dealing with foreign currency exchange rates.
This is an added advantage for people who don’t have time to keep track of fluctuating exchange rates between their home country and the country from which the drugs are being sent.
4. Bitcoin Helps in Hidden Transaction Fees
Traditional methods of moving money through a bank or a foreign exchange market have a lot of hidden fees associated with them.
5. Bitcoin Helps Avoid Intermediaries
Transferring money from one person to another through a third party can be costly and time-consuming. However, a third party controls two people’s money without their permission and makes the transaction possible in this method.
On the other hand, Bitcoin eliminates this problem by making transactions peer-to-peer and removing the need for a third party.
6. Bitcoin Helps in Making Payment After Death
Despite laws and policies that force banks to freeze accounts after their owner’s death, people who have vast sums of money invested in bitcoins are not subject to the same rules.
This means that people who have large sums of bitcoins can transfer their money to another wallet before they pass away, ensuring that their investments are not lost.
7. Bitcoin Helps in Making Anonymous Donations:
Bitcoins make it easy for people to donate large amounts of money to a charity anonymously. This is particularly beneficial for people involved in illegal activities but wishes to support social causes.
By simply transferring Bitcoins, users can maintain their privacy while supporting the excellent work of charitable organizations.
4 Ways how to regulate bitcoin to stop online drug
1. Banning Bitcoin
A possible solution to the problem of people using bitcoin for illegal activities is banning or restricting the use of bitcoin within a particular country.
This, however, would also prevent citizens from making legitimate transactions with foreign organizations and individuals who accept payment in bitcoins. In addition, digital currencies like Ethereum can be used for illegal activities.
2. Censoring the Internet
Another way to stop people from buying drugs online is to restrict access to websites that sell them.
However, this is ineffective because web users can easily download Tor which allows them to browse the web anonymously without being monitored or tracked.
3. Regulate Bitcoin
A more practical solution for stopping criminals from using bitcoin is to regulate it to prevent them from making transactions in bitcoins.
This can be done by banning all exchange platforms which allow people to change their money into the required currency. While this may not stop people from mining bitcoins, it will prevent them from exchanging them.
4. Taxation
One of the most effective methods to stop criminals from using bitcoins is by forcing them to pay taxes on their transactions and profits made from dealing in bitcoin.
Conclusion
With the growing number of transactions in bitcoin, the government needs to start taking action before it becomes hard to manage. So, it is clear that bitcoin can be misused for drug activities.