Pseudonymous, Not Anonymous
Since cash is “anonymous“, hard-core criminals like drug dealers and terrorists prefer to transact in cash:
Unlike what many uninformed people think (thanks to the mainstream press and political sound-bytes), Bitcoin is NOT anonymous. Bitcoin is “pseudonymous“.
Unlike cash, each bitcoin is tethered to an address that is visible to anyone, anywhere, anytime. Every transaction is stored in the immutable, publicly visible, Bitcoin blockchain. And there are many Blockchain forensic analysis programs that can trace the path of every bitcoin ever mined from address to address.
Bitcoin <-> Cash exchanges are required to “know their customers“. So, when you sign up for an account at an exchange (like Coinbase.com), by law, you must supply personal information to the exchange (I had to upload a picture of my driver’s license).
As soon as a criminal decides to cash out bitcoins through an exchange, the game is over – it’s just a matter of time. Simply ask the jailed criminals who’ve used Bitcoin in their dealings how they ended up where they are.
So, criminals, stop tarnishing the image of the greatest innovation since the internet. Stay away from Bitcoin, you dumbasses.