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Experts discuss use of cryptocurrency for money laundering

Economy Materials 27 January 2021 13:00
Experts discuss use of cryptocurrency for money laundering

BAKU, Azerbaijan, Jan.27

By Sadraddin Aghjayev - Trend:

Bitcoin (BTC) fell 17 percent in trading on January 21, falling below $30,000, and these fluctuations have become commonplace, Trend reports referring to the report of the BitMEX international cryptocurrency exchange and analytical opinions.

According to the report and opinions, this type of currency will inevitably lose its status as a financial tool protecting against market shocks, and it is also assumed that a vulnerability may exist in the Bitcoin blockchain that can lead to ‘double spending’.

"In such a situation, there is no need to talk about the reliability of this virtual currency, and the market players reacted immediately,” said BitMEX experts. “We assume that this is a false alarm caused by the simultaneous extraction of two blocks at once and, accordingly, about the reorganization of the chain. It seemed to be but wasn’t double-spending. Despite the denial, a certain ‘residue’ remained.”

Besides, according to the experts, Joe Biden, now represented by the now full-fledged US President, and Janet Yellen, the nominee for the Minister of Finance of the country, issued an extremely ambiguous statement in which they expressed concern about the existence of virtual currencies.

“According to Yellen, cryptocurrencies are used primarily for ‘illegal financial transactions’, and means of limiting its circulation must be thought about. Besides, according to her assumptions, this is money laundering with the help of BTC and now the White House will have to resolve this issue. Moreover, Yellen believes that the situation for the crypto currency market may be alarming, and traders take this into account in their estimates of the future of Bitcoin,” the experts noted.

The head of the data analysis department of UK-based CEX.IO Broker company Yuri Mazur said that the main reason for the fall in the market value of bitcoin is the corrective phase of the market dynamics of this cryptocurrency, which began with a big fall on January 10-11, 2021.

"It started with a breakdown of support around $40,300 on January 10th. We are seeing now its continuation. Nevertheless, on the CEX.IO exchange, we still observe a significant concentration of buy orders for $31,000,” Mazur noted. “This price is characterized as solid support on the bitcoin price chart. In the medium term, we also expect to see fluctuations in the BTC price in the range of $28,000-36,000 before determining the further movement direction.”

According to Alexey Korenev, analyst of the Russian Finam investment holding, the speculative movement of BTC in no way depends on the situation in the global and national economies. The price is driven by investors who have this opportunity because they own a large share of bitcoin.

“The main losers from the rise of cryptocurrencies at the beginning of the year are computer gamers. The rise in BTC prices has led to a frenzied demand for powerful graphics cards. Graphics cards like Nvidia GeForce jumped several times, and in many countries, they simply disappeared from the sale,” added Korenev.

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Follow the author on Twitter: @agdzhaev

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