Mainstream media reports: Bitcoin ETF will encourage criminal activities, the US Securities and Exchange Commission should firmly resist

Recently, an opinion article on the Hill news website pointed out that if the U.S. Securities and Exchange Commission (SEC) approves a Bitcoin exchange-traded fund (ETF), mainstream investors will be forced into a "massacre."

Does Bitcoin ETF encourage criminal activity?

Jim Angel, a columnist for The Hill, believes that the launch of a Bitcoin ETF is not a wise decision and is not in the best interest of the public. In general, the author believes in the potential of blockchain technology, but he believes that Bitcoin is mainly used for "money laundering, ransomware, tax evasion, and other criminal activities." The article mentioned that if the SEC passes a Bitcoin ETF, it will ultimately only facilitate such illegal activities.

The article mentioned:

There are a ton of legitimate applications for blockchains, but Bitcoin 1.0 is not one of them.

Bitcoin is the ideal payment system for the black market. The anonymity of Bitcoin transactions makes it an ideal means of drug distribution, terrorist financing and human trafficking. Bitcoin is the 'kingdom currency' of the dark web.

The author also details a recent discussion he had with others about Bitcoin, asking if anyone had used the digital currency. He explains that the last time he asked that question, the response was that someone had to use Bitcoin because of ransomware. In his opinion, the main use of Bitcoin is only criminal activity, and he doesn't think anyone has explained that to the SEC.

He concluded:

For this reason alone, the SEC should reject them.

Coin Center slams The Hill

Jerry Brito, executive director of the digital currency and blockchain advocacy organization Coin Center, then hit back, saying that the Hill article was too misleading. Brito explained that the author only expressed his opinion based on his own one-sided words and did not cite any substantial evidence to prove its authenticity.

The advent of the Internet has led to rampant piracy, pornography and illegal gambling, easier criminal communication, anonymous harassment and new types of fraud.

What would have happened if the government had adopted Mr. Angel's advice in the early 1990s? He would have advised the government to "carefully study the potential costs of this technology (the Internet) and ignore all potential advantages because these advantages have never been proven and are uncertain." Then we would definitely be getting poorer and poorer today.

Bitcoin Illegal Activity Is Far Less Than Traditional Payment Systems

The mainstream media has repeatedly tried to paint a negative image of Bitcoin. In addition, the Hill authors do not mention the use of other payment methods such as cash and credit cards in illegal activities. Indeed, ransomware and other illegal activities have always used Bitcoin, just as malware has specified Paypal and prepaid cards as payment methods. Ransomware has been around since 1989, when Bitcoin did not exist. Other illegal black market activities mentioned in the Hill article are also supported by fiat currencies, credit cards, major payment providers, gold and diamonds.

Compared with the criminal activities supported by traditional mainstream trading media, the 20 billion market value of the Bitcoin economy is just a drop in the ocean, and even with the ETF, it will not change much.