Reader riposte: Bitcoin and terrorism

by Reader riposte - 16 November 2012 4:47PM

Ingram Niblock writes:

Simon Palombi overstates the threat from terrorist's use of Bitcoin. First, a key aspect of Bitcoin is that every single transaction made using the currency is held by every single user of the currency in what is known as the block chain. While the user and the unique address are disassociated if the correct precautions are taken, network maps based on transactions can be developed. Even if people are careful, their associates and the people they transfer money to may not be. This network map will be a big intelligence boost and large Bitcoin transfers will attract attention.

Second, for Bitcoin to have real world effects, it must cross into the physical somewhere and this is where traditional intelligence gathering, law enforcement and customs will continue to play a key role. Just as drugs are seized where some other currency is used, so too will drugs and weapons be seized if Bitcoin is used. Australian police have already made arrests where Bitcoin was used and the market place was on the anonymous TOR network.

Bitcoin poses challenges that need to be addressed but it may not be the game changer that the author implies.

email options
Email the Editor
Email the Author
Email a Friend
print this post

Also on The Interpreter

Small weapons of mass destruction: Why Australia should lead the global charge against small arms

Development links: Population, TB, Samantha Power, poverty and more

Reader riposte: Costs of EU-US free trade deal



Defence in depth: Better or worse?

Can G20 leaders save the multilateral trading system? Will they bother?

Interview: Kishore Mahbubani's great convergence, part II



Lowy Institute for International Policy
Australia in the Asian Century

An Interpreter feature which ran from March to September of 2012, published to debate the Gillard Government's 'Australia in the Asian Century' White Paper, then in its research and consultation phase. Click here to see every post published in this series.

For commentary on the published White Paper, click here.

Australia's Defence Challenges

An Interpreter feature exploring Australia's defence challenges as the 2013 Defence White Paper planning process begins. Click here to see every post published in this series.

Selected Interpreter posts also appear in:

 
Business Spectator Caing online The Diplomat
 

Keep up-to-date with The Interpreter through:

iPhone App   iPhone App

RSS Feed   The Interpreter RSS Feed

Email Digest  

To receive a digest of posts from The Interpreter via email, enter your email address:

Receive a daily digest ->
Receive a weekly digest ->

Preview   |   Powered by FeedBlitz

Interpreting the Aid Review

This is the archive of a Lowy Institute blog which ran from January to April of 2011. It was published to debate the Gillard Government's independent aid review, which was then in its research and consultation phase. We offer this archive as a service to researchers and the general public.

© 2012 The Lowy Institute for International Policy