U.S national security advisors believe that Islamic extremists are increasingly using bitcoin as a way to raise funds. The Foundation for the Defense of Democracies, which acts as a national security advisor to private and public organisations, has identified four transactions linked to terrorists in the past month. In the previous 12 months, not a single transaction had been identified.

The sudden increase coincides with the rapid gains that bitcoin made during November and December 2017, which led to increased public awareness and saw prices hit $20,000 on some exchanges.

While it is believed that the total amount raised by terrorist organisations using Bitcoin technology is relatively small, the spike in use is being viewed as the result of Islamic extremists exploring Bitcoin technology and other cryptocurrencies.

Yaya Fanusie, the director of The Foundation for the Defense of Democracies, has released a report which details the possible unintended consequences of the rise in bitcoin prices. Speaking about the report, Fanusie said:

\"If you are interested in cryptocurrency being adopted, you cannot ignore the illicit actors who are trying to make use of it. If these illicit actors are going to exploit Bitcoin technology we need to understand as a society exactly what this means.\"