I think criminals prefer to don't waste the time waiting the 'complicated" bitcoin transactions and confirmations, it's more simple and easy for them to use fiat and cash and they used this currencies already

I don't see it becoming any problem, to launder money they would need to transfer it from one place to another without the help of anybody else, which bitcoin does quite easily BUT the problem is converting it back to fiat, you're not going to find cash traders for large amount of fiat everywhere. I think there other ways of hiding and launder black money and criminals were using them before Bitcoin was even invented.

people who launder money want it to be liquid with no trail.
My uncle used to be a partial owner of strip club in washington
DC area and he has some stories.  My point is that is a great
place to launder money lol. BTC seems a little more complicated
and a lot more of a hassle to launder less.

It depends on how the societies will react to it

From criminal's point of view, use bitcoin is much more dangerous than cash: Their wallet might be emptied by hacker, and unless they have a very sophisticated coin mixing scheme, one of their bitcoin spending/selling might reveal all their previous transactions and get them caught

For example, police know that some addresses received illicit funds, then they will mark all the transactions originating from these addresses to be suspicious. No matter how many times the criminal mix his coins, eventually he would like to spend some of his coins at somewhere, either at an exchange or a specific merchant, then police might find a high rate of relation between these addresses and also identify the owner

There should be many patterns for typical money laundering actions, if police do enough amount of research, even the criminal himself might not understand how he get caught. Because of the openness of blockchain, law enforcement are much easier to trace the money than traditional financial system, where they have no right beyond the boarder. And they don't need to blacklist the address, they just quietly follow it and see how it evolves maybe even bigger guys behind it

So from the surface, it seems the address is not related to identity, but the user never know if someone is tracking his transactions, this is the biggest threat for criminals, they don't need to worry about this when they use cash

Nice post. And in the UK it is actually illegal to make any purchase of anything with over £10,000 in cash ! Imagine being a lottery winner and going to the car dealership to buy that shiny new car, with cash in a briefcase, and getting turned down, and the police called lol

So... What about that other place on the world wide web, the deep web, there are many many places vendors are willing to accept the criminals Bitcoins for services, both virtual and very very real.

Personally, I find that it's not easy to buy reasonable amounts of bitcoin without sending my government ID, and/or my taxpayer identification number, to the various exchanges. (I am not willing to do this because I don't trust the security of many start-up companies, and worry about identity theft.) When the exchanges have this information, it's a simple matter for the government to subpoena them, and then me.

You pay cloud mining or buy miner equipment and then get paid with bitcoin. Mining is a way to get bitcoin without tracking.

Transactions are public, but users identities are not. Its exactly opposite to banks, where transactions through bank are not public, but user identifies are know (by banks).

So as long as your identity is not linked to your address, you are untraceable. But the moment you start buying bitcoins through exchanges, giving your address to merchants, the chance of linking your identity to all your past, present and future bitcoin transactions increases.

This is the risk ppl have to consider when using bitcoin and wanting to remain as anonymous as possible.