So some poor soul gets stuck with the hot potato down the road(Ie their funds frozen for no apparent reason when the forensics flags them). The criminals know this and will cash out immediately as much as possible. How is that a good thing?
Those potential new owners would also probably just go trade on an exchange. If there is some big discount from a local party trying to get rid of the coins, wouldn't that raise some red flag?
The transactions for most cryptocurrency blockchains are viewable by all members of the public. With fiat, only the banks (or the governments) can see transactions. If I was to say there is some good thing, I would say that is a new innovation that hasn't been possible before. Cryptocurrency also does enable new illegal activities that weren't possible before, so there are definitely pros / cons, but I would say there are pros / cons to fiat as well.
Laundering is very easy with cryptocurrency. Despite the transparency on chain, how can anyone distuingish between someone buying a meme coin earlier and cashing out at 80,000% gains, versus someone with two accounts and bought a meme coin with clean money (account 1) and then pumped that meme coin 80,000% with their dirty money (accounts 2 through n) coming from different addresses. The dirty money accounts are now saddled with the meme coin, and the clean money accounts as well as yours and every other fomo trader's account that sold now has the more liquid cryptocurrency. For all reporting purposes, everyone has clean money and simply was a good trader. No investigator or government is proposing that traders are liable for determining who they traded against when its onchain or in an offchain exchange.
Secondly, not everyone wants fiat currency. The attackers can invest in other cryptos and make any founder or fund popular and highly revered. They can acquire goods and services and access with the crypto itself. They aren't sitting there trying to figure out how they can buy multimillion dollar houses and yachts, as its not a priority, but if they do want a lot of fiat its always available.
IMO, if folks wants privacy now they should actually use privacy focused crypto, but I also think the public nature of crypto is one of the interesting parts of it. I know there are privacy diehards and I can understand why, but I'm more interested about the technology in general.
ultimately the only thing changing is the state's ability to flag electronic transactions, as there are no financial intermediaries for them to deputize. they didn't have that ability in the cash based system, and they temporarily got used to it in the electronic one. This is just a reversion to the mean.
What do you mean it hasn't been possible. It's absolutely possible. We don't do it because no one wants to advertise how much money they have and who they give it to, unless compelled by a specific reason.
> Cryptocurrency also does enable new illegal activities that weren't possible before, so there are definitely pros / cons, but I would say there are pros / cons to fiat as well.
So the pros are things we could do (publish our private transactions), but we don't want to, and the cons are things we could do (blackmail each other), but we don't want to.
Lol, great.
Also does Bitcoin give you a "choice" in exposing your wallet transactions? How is Bitcoin's lack of privacy choice "a choice", and your choice whether to keep your bank account history private or not, "not a choice".
It's say crypto gives you less choice. And even worse, the way crypto chose, to expose transactions, makes actually the regular folks more vulnerable.