A popular criticism of Bitcoin is that it’s only good for laundering money. But in fact the problem is just the opposite. It’s not good enough.
As our Bloomberg Opinion colleague Matt Levine recently wrote in response to the arrest related to the Bitfinex theft, it turns out it’s extremely hard to launder money with Bitcoin because the blockchain is visible for the world to see. Of course, the chain itself doesn’t have user names associated with any specific address or wallet. However, it’s very easy to watch some amount of Bitcoin and see if it’s on the move. And it’s not hard for regulated exchanges to reject Bitcoin that is deemed to be compromised in some way.