Myth 3

Bitcoin Puts You Beyond the Long Arm of the Law

During bitcoin\'s infancy, it was the cryptocurrency of choice for the now infamous DarkWeb site Silk Road, which supplied everything from crack cocaine to hit men. Many users who were engaged in illegal activities believed that using bitcoin would help them to stay one step ahead of the police. Nobel laureate Joseph Stiglitz famously said that bitcoin was nothing but a haven for people who wished to evade the law. Stiglitz then somewhat ironically called for bitcoins themselves to be outlawed.

For quite a while, it was unclear how bitcoin technology would be policed and what laws applied to the digital realm. However, although the wheels of justice turn slowly, they do indeed turn as updated rulings, and interpretations of existing statutes and laws help to cement the new technology\'s place within the legal system. Now that bitcoin has broken through into the mainstream it is likely that further regulation will follow regarding money laundering and tax evasion. As for Silk Road, the site was targeted by the FBI, and the owner, Ross William Ulbricht aka \"Dread Pirate Roberts\" has been sentenced to life in prison without parole.