According to the data by Chainalysis on Jan 18, 2019, revealed that the bitcoin activities on darknet web are thriving despite the constant crackdown by legal watchdogs. Darknet market involves dark sites or the marketplace where people involves in illicit activities like buying and selling illegal drugs, illegitimate goods, stolen information and weapons using anonymous currency such as Bitcoin.
Bitcoin flow to darknet markets increasing YOY
On one hand, the overall market has experienced a dreadful decline since late 2017, on the other hand, the trends of crypto transactions on escrow marketplace were reaching the peak. Most of the crypto enthusiasts are already blue in the face due to the continuous sinking prices of cryptocurrencies. A comprehensive study on the darknet market by chainalysis counts bitcoin transactions on the dark web was $2million/day.
Chainalysis found ‘bitcoin flowing to darknet markets increased year-by-year’. Consequently it states $57million/day in the year 2012, $196million/day in 2013, $254million/day in 2014, $357million/day in 2015 and $566million/day in 2016. The major hit appears when the value of Bitcoin accelerating every moment in 2017, consequently while the value of Bitcoin reaches to nearly $20000, the activities on dark sites also grown up $707 million/day. However, it slightly decreased to $603million/day in the year 2018.
However, the report states ‘price fluctuation of bitcoin’ doesn’t really matter for the movement of darknet. As such, Kim Grauer who is the senior economist at Chainalysis said;
“For someone who wants to buy something on a dark marketplace, the fact that bitcoin price is fluctuating doesn’t really matter,”
Chainalysis indicates the two platforms contribute much to the darknet movement – AlphaBay and Hansa. However, the AlphaBay which was one of the major markets for darknet activity got closed in Mid 2017 following law enforcement. This was eventually dominated the illegal activities. Nevertheless, the other player pops up and the trend again began rising. Recently coingape reported various illicit cases in connection to darknet market. One of the latest cases we reported was, a gun ordered by a US man by using cryptocurrency worth more than £2,000.
— CoinGape (@CoinGapeMedia) January 14, 2019
While the rise of the dark web continues, regulators across various countries are continuously cracking down the major players of dark web. One such success involves the closure of AlphaBay in 2017. Consequently, the stern laws on these platforms are likely the biggest reason for ‘the behavioral patterns of darknet market activity’.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com