The Darknet is known as the mysterious side of Bitcoin and an online market for all kinds of things known for its restricted access and used for illegal peer-to-peer file sharing. The main link between BTC and the Darknet is the decentralized, immutable, censorship-resistant and pseudonymous nature of Bitcoin which allows users on this dark side of the Internet to get into illicit transactions. In the latest Bitcoin news, we are focusing on a report that shows doubling in the volume of BTC darknet transactions.
According to a recent report from Reuters which cites data gathered by Chainalysis (leading data analytics consortium), the Bitcoin-related transactions on darknet markets used for things such as fake IDs, over-the-counter drugs, weapons and other things – has risen dramatically since January 2018.
What’s interesting is that the rally in darknet-related transactions comes when Bitcoin is at $3,700, falling from its all-time high of $20,000 to the 2018 yearly low of $3,150 in late December.
Even though it remains unclear how this analytics group managed to pull the data from the Darknet (since the market is entirely restricted), Chainalysis revealed that $2 million per day worth of BTC were routed through the darknet’s peer-to-peer marketplaces – a number that doubles when compared to the previous year.
Kim Grauer who is a senior economist at Chainalysis, talked about the decline in darknet transactions in mid-2017 when he stated that “the reason for that drop is because of law enforcement activities, but it is still misleading to think that this year the volume will go down.”
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