Bitcoin will be made illegal

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Bitcoin has two properties that make it perfect for black market dealing. First, users are anonymous. An item can be sold and purchased without each party knowing from where it comes. As a result seller of contraband can sell their products to customer without fear of the buyers being able identify them to police.

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Second seller of contraband can change their addresses each time they made a transaction. This would make it extra difficult to find out how many people were selling a type of contraband. If a person wished to lander their money all they would need is two Bitcoin accounts. Then Account A would sell those coins to Account B under a different address. So long as Account A is remained hidden from the police, Account B and its user look perfectly legitimate. Unlike tradition money laundering, the lack of a physical and bank interaction makes back tracing the money that much more difficult.

Worst yet the launderers could keep changing the addresses of both accounts to make the transactions look less conspicuous.

JAIL TERMS?

If Bitcoin were to become viable it would provide an alternative way of exchanging goods. However Bitcoin by its very nature would work well, if not best, in the world of illicit behavior. It could provide criminal with the anonymity that they desire. Will the United States government make bitcoin illegal?

Who knows. But as bitcoin continues to increase in value, fraud gets out of control, or they feel like they don't have control, the feds could put significant regulations on bitcoin and other cryptocurrencies. Any government could. This is what makes bitcoin and its competitors so risky.

I can tell you one thing for sure: It's definitely not worth taking out a second mortgage on your house or liquidating your k to buy bitcoin. It's just not worth the risk.

Grant Sabatier is the Founder of Millennial Money , where he writes about personal finance, side hustling , and investing. Like this story? Don't miss: Bitcoin millionaire: Don't invest in bitcoin. Skip Navigation. Courtney Connley.

It could be made illegal at any time, by any country. Here's why and how it could happen.

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