Hackers are increasingly choosing the privacy-focused Monero (XMR) cryptocurrency over Bitcoin because the latter can be easily tracked. However, when using a privacy coin, they can run into liquidity issues.
Monero vs Bitcoin
For years, bitcoin has been the perfect cryptocurrency for hackers carrying out ransomware attacks. Nevertheless, concerns have arisen that it might be tracked.
This is the result of a recent FBI operation that successfully compromised a cryptocurrency wallet owned by Colonial Pipeline hackers. Agents involved in the operation managed to trace the funds paid as ransom on the bitcoin blockchain and recover them.
Monero is a cryptocurrency that has its own blockchain. What’s more, it allows you to hide virtually all details of the transaction. By making a transaction with XMR, you can hide the identity of the sender and recipient, as well as the amount of the transfer.
Due to its anonymity features, monero allows cyber criminals more flexibility over certain BTC mechanisms.
Thanks monero, [blockchain] it hides the wallet address, the amount of the transaction and who the opposing party was, which is almost exactly what hackers want.
– He said Fred Thiel, former CEO of Ultimaco, a leading crypto company.
Disadvantages of Monero compared to bitcoin
Thanks to bitcoin, hackers can cash in the fraudulent ransom, as this asset is listed on most exchanges. However, Monero presents cybercriminals with various liquidity challenges.
This cryptocurrency is not as liquid as other digital assets, as most regulated exchanges do not list it due to regulatory concerns.
Overall, bitcoin remains a hackers’ favorite cryptocurrency despite its shortcomings. Tracking Bitcoin is easy as its blockchain displays transaction amounts and addresses of senders and recipients.
The ability of cryptocurrencies to support criminal activity is often cited as one of the reasons critics press for regulation of the sector.
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