Bitcoin Darknet Transactions In 2018 Doubled
Bitcoin burst onto popularity sometime in 2009, and since then, the world’s leading cryptocurrency has taken the world by storm. It has even become a medium specifically meant for all types of transactions. And just like the prominent U.S. dollars – including other government-issued currencies – the digital currency has found utilize cases in terms of illicit transactions. Whether it is used for the purchasing of questionable products or otherwise, BTC has reportedly found a place.
All Darknet Transactions
As per the official report, which cited data collected by Chainalysis, all Bitcoin-related transactions on darknet markets have risen significantly since January last year. Darknet markets basically refer to where over-the-counter drugs, fake IDS, and other items deemed illegal, exist and can be bought.
Apparently, this rally for all darknet transactions took place as the world’s leading digital currency plummeted from an all-time high of $20,000. The latter reportedly fell down to a mere amount of $3,150 in late December 2018.
The only catch, however, is that the aforementioned analytics group is unclear in terms of how it determined “normal transactions” from those that are not. However, the company announced that around $2 million per day worth of Bitcoin were routed via the darknet’s infamous peer-to-peer marketplaces.
Why the Slight Decline
Overall, there are about $600 million of BTC spent on darknet markets throughout last year. It is definitely high compared to 2017’s figure, which was about $700 million. According to a senior economist at Chainalysis named Kim Grauer, there is an explanation to the slight decline in the above-mentioned type of transactions – and it is even connected to the very closure of AlphaBay and Hansa. It should be noted that these two are considered among the major markets.
Grauer pointed out that the reason behind this drop is pretty straightforward: there is more law enforcement activity going on. However, the analyst clarified that it is quite misleading to anticipate that the volume this year will dramatically fall down.
It cannot be denied that Bitcoin has become a popular form of payment, though it has become a rampant figure on the darknet. Why exactly? This is due to the fact that users do not necessarily reveal their identities. And while the crypto’s volatility has attracted a lot of speculators, it has also prevented the digital currency from becoming more widespread in terms being a payment form specifically in mainstream commerce.