As cryptocurrency continues to gain more traction, many claims about its illegal use are also on the rise. As the primary crypto asset, Bitcoin has received the most attention and allegations over illicit activities so far.
In a recent development, the Head of Research at Fundstrat Global Advisors, Thomas “Tom” Lee, defended BTC over the numerous claims of its illegal use.
Bitcoin Advocate Says The Dollar, Not BTC, Is Used Most In Illicit Activities
During CNBC’s show Squawk Box, Tom Lee defended Bitcoin against claims of its prominent use in illicit activities. CNBC’s Joe Kernen hosted the show. In his argument, Lee maintained that the US dollar is used almost 99% in illegal activities, not Bitcoin.
“The dollar is used for more illicit activities,” says @fundstrat’s Tom Lee on $BTC being used for illegal purchases. “Criminals don’t trust anybody, but they trust bitcoin.” pic.twitter.com/ysgaMs7JYC
— Squawk Box (@SquawkCNBC) February 21, 2024
Notably, many people laid out opinions that Bitcoin has become a resort to major nefarious engagement in the financial sector. They believe that the decentralized nature of the crypto asset eliminates close attention and control of authorities, thereby aiding criminal financial activities.
Moreover, some government officials, such as Senator Elizabeth Warren, have kicked against cryptocurrency, arguing that BTC is the preferred option for money laundering and terrorist financing. However, according to Tom Lee, cryptocurrency falls behind the United States dollar in that regard. He said,
The dollar is used for more illicit activities.
Besides the use of crypto in criminal activities, the host also asked Lee’s opinion of the claims from SEC Chairman Gary Gensler regarding the latter’s preference for Oracle databases to Distributed Ledgers. In response, Lee indicated his confidence in Blockchain Technology, pointing out his endorsement of the Proof-of-Work (PoW) concept.
Blockchain Technology Supports Bitcoin Superiority And Adoption
According to the Bitcoin advocate , PoW is a consensus mechanism rather than a system that relies on a group of five or more for its management. Notably, the technology’s selling point lies in the decentralized and trustless means of proving transactions on blockchains.
This makes it impossible to tamper with records on the Bitcoin system. The pseudonymous nature of Bitcoin’s transactions contributed to the claims of its illegal use.
However, security experts have uncovered criminal activities with crypto in the past, which disproves the untraceable claims of BTC transactions.
Additionally, Lee pointed out that Bitcoin’s trustless nature is the reason many prefer the token. Even criminals who normally lack trust in others indicate their confidence in BTC. Also, amid the claims against Bitcoin, institutional investors have indicated interest in the asset.
This brought in spot Bitcoin exchange-traded funds (ETFs), creating a new wave in the industry. Notably, after the SEC’s approval of spot BTC ETFs on January 10, about eleven companies bagged the license to offer the product.
Among the firms is the largest global asset manager, BlackRock, whose CEO, Lary Fink, has become a notable supporter of Bitcoin.
Also, Bitcoin has been receiving more validations from MicroStrategy Chairman Michael Saylor. During an interview with Bloomberg Television , Saylor pledged the company’s support to Bitcoin. He mentioned that MicroStrategy will always purchase Bitcoin. Further, the executive noted that the approval of spot BTC ETFs would boost the crypto market.
According to Saylor, the new development is “ a rising tide that is going to lift all boats.”