Sorry Charlie (Munger)! Bitcoin may soon become less important to cybercrime and kidnappers – Bitcoin (BTC/USD), Monero (XMR/USD)
Leading cryptocurrency Bitcoin is known for many things, whether it is used to buy a pizza, kept on the balance sheets of companies, used as currency in countries like El Salvador or as a store of value.
A known use case may become less important in the future and silence critics.
What happened: A leading cyber security company has spoken out about Bitcoin BTC/USD soon less important in the world of ransom negotiations and payments, which may be contrary to what Berkshire Hathaway Inc BRKABRKB Deputy Chairman Charlie Munger recently said about the cryptocurrency.
Kaspersky said that Bitcoin may be relied upon less as a source of use for illegal activities due to sanctions and new market regulation requirements.
“When the price of crypto falls, threat actors will stand to gain less, and will therefore look to other more profitable forms of payment,” Kaspersky Global Research researcher Marc Rivero told Decrypt.
The good news may be that Bitcoin is not being used for illegal activities. The bad news is that Kaspersky sees privacy coins such as Monero XMR/USD and Zent Cash ZEC/USD used for the activities instead.
“As the markets become much more regulated and the technologies used to track the flow and sources of Bitcoin improve, threat actors will naturally move away from this form of payment as it opens them up to exposure and increases the chances of being apprehended.”
A report by Chainalysis said that $602 million in cryptocurrency in 2021 was linked to ransom payments.
Related Link: How to Buy Bitcoin
Why it’s important: Skepticism about Bitcoin and other cryptocurrencies has probably increased after the bankruptcy of FTX.
One of the biggest opponents of Bitcoin is Munger, who is known for calling the leading cryptocurrency rat poison. Munger also doubled down on Bitcoin after the bankruptcy of FTX.
“This is a very, very bad thing. The country didn’t need a currency that was good for kidnappers,” Munger said.
Munger said Rome took a long time to reject and said Bitcoin and the people who support it could help promote the decline of civilization.
“There are people who think you have to be in on every deal that’s hot, and they don’t care if it’s child prostitution or Bitcoin.”
Bitcoin the bull Anthony Pompliano criticized Munger’s comments on questions recently.
“They don’t understand the technology,” Pompliano said.
Pompliano said studies have shown the US dollar is more used for money laundering than Bitcoin, but people want to have “headline-grabbing anti-Bitcoin statements.”
Pompliano suggested that if Munger and his colleague Warren Buffett were 25 to 35 years old, they would be buying Bitcoin today.
Read next: ‘Threats to our society pose with cryptocurrency’: Congressman takes aim at billionaire Crypto Bros
Photo: Alexander Geiger via Shutterstock
