Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Cryptocurrency is a digital currency that only exists electronically. Many people use cryptocurrency for quicker payments, to avoid transaction fees, and because it offers a degree of anonymity. While many hold it as an investment, cryptocurrency is well used as a digital currency stored in a digital wallet.
As more people gravitate towards investing, holding and using cryptocurrencies, scams rise, such as a funding terrorist scheme in Syria which recently made headlines.
According to numerous local media sites on Friday, two men detained on suspicion of using cryptocurrency to fund terrorism in Syria received final prison sentences from French authorities.
French daily newspaper Le Figaro reported on Sunday that the two individuals, Franco-Algerian Sami Allem and Franco-Moroccan Abderrahman Cheikh, were condemned in a Paris criminal court on Friday for "membership in a terrorist criminal association" and "funding of terrorism."
According to the article, Allem received a sentence of three years in prison and one year of probation, while Cheikh received a sentence of two years in prison and two years of probation.
Allem and Cheikh were a part of a network that was charged with using cryptocurrency between 2018 and 2020 to fund "jihadists" in Syria. According to the article, the amount of money sent to Syria using cryptocurrencies to finance terrorism is thought to have been over 280,000 euros ($280,268).
Following an operation led by France's national anti-terrorism prosecution, Parquet national antiterrorist (Pnat), the two individuals were detained in September 2020, according to Le Figaro. French authorities detained 29 people in September 2020 on suspicion of using cryptocurrency to pay for jihadist extremists in Syria.
This is not the first or even the last cryptocurrency scam used for criminal activity. The second-highest yearly value in cryptocurrency crimes ever recorded, according to CipherTrace's 2020 Cryptocurrency Crime and Anti-Money Laundering Report, big crypto thefts, hacks, and scams reached $1.9 billion in 2020.
Does This Mean Cryptocurrency is Unsafe?
Fiat has the same, if not more significant, risk than decentralised finance, because they can manage the amount of money printed, and central banks use fiat money to have more power over the economy. Most contemporary paper currencies, including the US dollar, are fiat currencies. Governments may print excessive fiat currency, which could lead to hyperinflation.
Cryptocurrency is kept in online wallets since it is a digital form of money. These wallets are not easily lost or stolen. Cloud-based wallets are vulnerable to intrusion by hackers. However, they aren't entirely secure, even if you decide to keep your digital money on a personal hard drive. Because of cryptocurrencies' historically erratic price movements, cryptocurrencies are riskier than conventional investments. Compared to Bitcoin, altcoin investments often carry a higher level of risk, but they also have a higher potential for gain. To maximize the returns on your investment, there are techniques to make it safer than fiat money.
Owing to the fact that transactions using cryptocurrency use anonymous ID numbers, they are more trustworthy and safe. Whether something is decentralised or centralised, there is always a risk of fraud or security.
Generally speaking, you should consider cryptocurrency one of your "greater risk, higher reward" investments, including equities. Although there is a significant chance of substantial rewards, cryptocurrency markets are typically more volatile than those for bonds or real estate.
Cryptocurrency entails a distinct set of hazards. However, investing in cryptocurrencies might be wise when included in a diversified portfolio of assets. Ultimately, it would be best if you determined whether cryptocurrency is appropriate for your risk tolerance and total investing portfolio.
Sadly, crime in most spheres of society is unavoidable, but with additional moves towards regulating cryptocurrency, including encryption for safety and security, it is generally safe to use. The Bitcoin Method review notes that scammers will always find a new way to steal, but because many transactions can be made public, it is easy to trace thieves and hold them accountable for their actions, just like France did.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.