Wednesday, January 22, 2020

Report Shows That Bitcoin Transactions On The Darknet Doubled In 2018

Babatunde Modupe
I am a freelance writer, Poet, blogger and cryptoenthusiast that is totally interested in blockchain technology and sharing it's Information with others.

The Daily volume of Bitcoin transactions doubled in 2018 as revealed in a recent report by Chainalysis. The surge in the volume of transactions continues despite the bearish trend the market went through in 2018.

The Bear Market

The cryptocurrency market has been experiencing a bearish trend since the beginning of 2018 after reaching its apogee at the later part of 2017. The bearish trend has caused market shed in value as well as the market capitalization declining by 90 percent since then.

Also, crypto pessimists have been on the rise, forecasting happenings in the cryptocurrency world as well as many enthusiasts selling their crypto holdings. In contrast to the trend and the use of cryptos for the transaction, Chainanalysis report has indicated that the use of Bitcoin on darknet doubled in 2018.

Why Usage Of Bitcoin For Transactions Doubled On The Darknet

Bitcoin transaction volume on darknet was noted to be in the average of $2 million daily in 2018 which doubled the rate noted at the start of the year. Kim Grauer, a Senior Economist at Chainalysis, in an interview said that the fall in the prices of cryptocurrencies does not discourage the use of Bitcoin for transactions on the Darknet. This is because the fluctuations do not affect the purpose of their transactions.

Darknet users use Bitcoin for transactions purposely to hide their identity in conducting their transactions. Thus, this does not matter if the value of crypto fluctuates. Darknet is a marketplace that all sort of banned goods and illegal products are traded. These include drugs, fake IDs, among others.

Fall Of Bitcoin Flow Into Darknet

Chainalysis report also stated that there had been a fall in the flow of Bitcoin into the darknet market. This fell to $600 million in 2018 from over $700 million in the previous year. According to Grauer the fall in the flow can be attributed to the closure of major markets such as Alphabay, and Hansa in the middle of 2017.

However, Grauer noted that several factors could disrupt the flow of Bitcoin in the market this year. These factors include the clampdown of the Darknet market by law enforcement agencies and the movement of Darknet’s transactions to encrypted messaging apps to avoid detection.

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