News Daily bitcoin transactions on darknet markets doubled throughout 2018:...

Daily bitcoin transactions on darknet markets doubled throughout 2018: report

-

- Advertisment -

NEW YORK (Reuters) – Use of bitcoin as a form of payment doubled in 2018 on darknet market sites, where users can buy anything from illegal drugs to fake IDs, even though the price of the cryptocurrency crashed, according to a study by data firm Chainalysis.

Daily bitcoin transactions on darknet markets doubled throughout 2018: report

FILE PHOTO: Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS/Dado Ruvic/Illustration

Bitcoin transaction volumes on darknet markets rose throughout 2018 to an average of $2 million daily, nearly double the activity measured at the start of the year, according to Chainalysis.

Overall bitcoin flowing into darknet markets fell to $600 million in 2018 from $700 million a year earlier, Chainalysis found. The dip was attributable to the closure of major markets AlphaBay and Hansa in mid-2017 which hampered flows until the start of last year when transaction volumes started to steadily grow again, Kim Grauer, senior economist at Chainalysis, said in an interview.

“The reason for that drop is more law enforcement activity,” Grauer said. “It would be misleading to think that this year it (the volume) will go down.”

Bitcoin, the largest cryptocurrency, is a popular form of payment on darknet markets because users do not need to reveal their identities.

In 2017 bitcoin became wildly popular with speculators who trade it online against other virtual currencies as well as hard currencies such as the U.S. dollar. Bitcoin’s price peaked in December 2017 at just above $20,000 and is now down more than 80 percent from its high.

While bitcoin’s volatility has attracted speculators, it has prevented it from becoming a more widespread form of payment in mainstream commerce. The value of bitcoins handled by major payment processors shriveled nearly 80 percent in the year to September, earlier data from Chainalysis showed.

The wild price swings have not dissuaded darknet users, Grauer said.

“For someone who wants to buy something on a dark marketplace, the fact that bitcoin price is fluctuating doesn’t really matter,” Grauer said.

However several factors could disrupt the rise of bitcoin flows into these markets this year. These include more closures of markets by law enforcement and the movement of activity from these venues to encrypted messaging apps to avoid detection, Grauer said.

Reporting by Anna Irrera; Editing by David Gregorio

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...
- Advertisement -Daily bitcoin transactions on darknet markets doubled throughout 2018: report

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

How has Bitcoin of America Changed the Cryptocurrency Industry?

Who is Bitcoin of America? Bitcoin of America is a U.S. based digital currency...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when...
- Advertisement -Daily bitcoin transactions on darknet markets doubled throughout 2018: reportDaily bitcoin transactions on darknet markets doubled throughout 2018: report

You might also likeRELATED
Recommended to you