How do Bitcoin and Darknet work?
What is the relationship between Bitcoin and Darknet? According to a report by Chainalysis, the use of Bitcoin on the Darknet doubled in 2018, and the market crash did not affect the use of Bitcoin on the Darknet.
What’s the difference between Bitcoin and the Darknet? have a relationship?
Bitcoin daily trading volume doubled in 2018, according to a report by Chainalysis. The increase in the transaction volume continues despite the downward trend experienced by the market in 2018.. After hitting all-time highs at the end of 2017, the cryptocurrency market continued its downward trend throughout 2018.. The downtrend reduced the market capilization by up to 90% and also affected the market cap. Also, doomsayers in the industry claimed that Cryptocurrencies would disappear and crypto companies would also go bankrupt and disappear from the market.. (see Bears prevent Ethereum ETH from rising)
But contrary to the downtrend and trading volume, the Chainanalysis report shows that Bitcoin’s usage on the darknet has doubled in 2018. What is the relationship between Bitcoin and Darknet?
Why Darknet users prefer Bitcoin?
Darknet users specifically use Bitcoin to hide their identities while making their transactions.. Therefore, the fluctuation of the crypto value is not important to them.. Darknet is a dark market where all kinds of illegal products including drugs, fake IDs are sold and illegal transactions are made.. And due to the confidential and secure nature of cryptocurrencies, cryptocurrencies are widely used for illegal purchases and transactions on the Darknet..
Bitcoin transaction volume on Darknet was recorded as an average of $2 million per day in 2018. This means that the rate stated at the beginning of the year has doubled by the end of the year.. According to Kim Grauer, a senior Economist at Chainalysis, the drop in the price of cryptocurrencies did not hinder the use of Bitcoin on the Darknet, as price fluctuations do not affect the purpose of transactions.. And the relationship of Bitcoin and Darknet continued in all kinds of illegal exchanges, including drug and weapons smuggling.. Of course, not only Bitcoin is used in the Darknet.. Other cryptocurrencies are also used, especially Monero, which stands out for its privacy.. (see: 7 reasons to buy Monero (XMR) in 2019)
The Chainalysis report also reveals a decrease in Bitcoin’s flow to the darknet market. While it was 700 million dollars in the previous year, it decreased to 600 million dollars in 2018.. Grauer attributes this decline to the closure of major markets such as Alphabay and Hansa in mid-2017. But Grauer says there are many factors that could disrupt the flow of Bitcoin in the Darknet market this year, such as the narrowing of the Darknet’s space by operations against illegal activities.
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