Is bitcoin being used for illegal activities

- Really? Does the sun rise in the east? Does the bear shit in the woods?

but fiat don't have anonymity features and bank not encourage illegal activities

I don't think the amount of people using Bitcoin for bad things will decline in the future.

More people that will adopt Bitcoin, will also translate into more people using Bitcoin to finance their illegal activities.

And btw, what do you mean with transfer Bitcoins tax free? That you don't have to pay transaction fees?

Bitcoin have been used in illegal activities long time ago and that also contributed to the price increase in that time. up until now i see some carder website prefer to be paid in bitcoin, white, grey, black hat hackers want to be paid in bitcoins. bitcoin are widely used in tor black market.

Any currency can be used to carry out illegal activities. Criminals are going to use the ones they find very convenient at the moment. So, it should not be a surprise for criminals to use bitcoins.

Yes. I think so too. One of the reasons for the value of Bitcoin is because it can be used by virtually anyone, anywhere, And it is almost untraceable. It would be very hard for Governments to trace, say , for money laundering, instead of using Casinos and such, as a front(cleaning), they could just use Bitcoin by buying and transferring to diff wallets and then selling it, that way they'd not just save on travel expenses, it would be safer too. It;s not just money from drugs too: bribes, firearms, terrorism, etc.
So, it is definitely being used illegally. Criminals are a breed that would continually find ways to ensure that they'll get their money,Very creative.

A lot of newbie in bitcoin users is the lack of knowledge about that, but I think it's normal. because they're new in the bitcoin. and this is will become a knowledge for them. its true bitcoin is the main currency for using their transaction. but it does not rule out the possibility there is another currency is using too in the deep and having the same chance with bitcoin.

We cannot say the most use, as most of the criminals are uneducated as the case in my country and they do not know how to adopt bitcoin and cannot run it through computer and will never know about its technology, but if we talk about online scams then we can say that yes now online scammers use bitcoin as with that they will remain anonymous while doing scam on internet.

Yeah, I too went through such websites which were accepting bitcoin for such killing and illegal purposes. It's been found high during the days when only people who involve in illegal activities were aware about bitcoin. Now most users were giving priority as an earning and investment.

Bitcoin is like a double-edged sword, apparently. It provides freedom from the government because the transactions can not be traced down to exactly who were involved in a transaction, but it provides great opportunity to illegal activities with the same reason.