One of the advantages of bitcoin is that the barrier of entry is relatively low, meaning that anyone can jump into it and attempt to mine for it if they want, or they can buy it off someone else if they have enough funds for it. Its anonymity is also one of the reasons why it might be attractive to those who wish to keep their financial transactions on the internet low-key.
However it is because of these features of bitcoin and other cryptocurrencies that the US government is studying the currency (and others like it) to determine if it could be considered a terrorist threat. This is according to a report from the International Business Times where they have learnt that the US military has asked vendors to submit for a counterterrorism program to help the military understand the technology and if it could pose a threat to national security.
The submissions include various state-of-the-art technology and virtual currencies, such as bitcoin, was listed as one of them. It was also discovered back in January that the Bitcoin Magazine managed to get their hands on an unclassified memo from the Department of the Navy which reads, “The introduction of virtual currency will likely shape threat finance by increasing the opaqueness, transactional velocity, and overall efficiencies of terrorist attacks.”
While bitcoin has a variety of legal uses, it has also been used in illegal activities in the past. For example the digital black market, Silk Road which was shut down last year by the FBI, accepted bitcoins as payments. There have also been instances of individuals who have been charged with money laundering through the use of bitcoins as well, but what do you guys think? Should the government be worried about how bitcoin could impact national security?
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