On Friday, as the Bitcoin price fell by around six percent against the U.S. dollar, several reports claimed that the dominant cryptocurrency dropped in value due to bomb threats. One report from Business Insider Australia, for instance, stated that following an email blast of bomb threats in New York, the price of the crypto asset endured a correction.
Wrong Argument Against Bitcoin
A common misconception that Bitcoin (BTC) by nature is anonymous or impossible to track is simply not correct.
As a consensus currency, Bitcoin is based on a decentralized network called the blockchain that is sustained by an open-source community of developers, miners, and node operators.
When a miner approves the settlement of a transaction by including it in a block, the transaction is broadcasted to the public blockchain network via nodes which relay information across the network.
Through the utilization of the public blockchain network and blockchain explorer tools, anyone on the network is able to track, trace, evaluate, and analyze the wallets that receive a suspicious transaction.
Some startups like Chainalysis place tags on certain wallets or transactions that are said to be related to criminal operations and follow the trail. If a tagged wallet sends a transaction to a Know Your Customer (KYC)-enabled fiat-to-crypto exchange, then the authorities can request the exchange to freeze the funds until the investigation comes to an end.
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