Pay and we will know its you.
This is the thing: an empty threat looking exactly like what you have there has been going around, which always has the same bitcoin address in it. In other words: they can't know it's you if you pay, and therefore the threat must be a bluff. Still, hundreds of thousands of dollars have reportedly been sent to that address, by people taken in by it...
To find out if it is a bluff, google the bitcoin address. I imagine you'll quickly be able to find out whether they sent you a unique one, in which case you have reason to worry, or not.
Steve Gibson talked about this on episode 557 of his Security Now podcast (transcript here). My money is on it being a bluff, since your text appears to be word for word the same as what Steve Gibson talks about.