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Crypto Darknet Transactions in full swing in 2018
Since Bitcoin (BTC) entered the world in 2009, cryptocurrency, known for its decentralized, immutable, censorship-resistant, pseudonymous and borderless nature, has become a support for transactions of all forms. and of all sizes. And just like US dollars and other currencies issued by governments, BTC has found use cases in illicit transactions. Whether to buy questionable goods or otherwise, the flagship cryptocurrency has found its place.
According to a recent Reuters report, which cites the data collected by Chainalysis, a major consortium of blockchain data badysis, bitcoin-related transactions in the occult network markets, which offer fake IDs, over-the-counter drugs (for recreational purposes), among other smuggling items have increased significantly since January 2018. This rise in black network transactions occurs as BTC has gone from an unprecedented peak of $ 20,000 to a record low. $ 3,150 annually at the end of December.
It's hard to say how the badysis group, which is often used by government agencies to eliminate bad actors, discerned "normal" transactions from dubious ones, but Chainalysis revealed that a sum of $ 2 million a day from BTC was routed through Darknet's peer network. counterpart markets. A total of $ 600 million was spent on the darknet markets in 2018, compared to $ 700 million in 2017. While the decline in transaction value could be viewed negatively, as BTC dropped by more than 70% during the same period, a decline of 14.3% is relatively straightforward.
Kim Grauer, Senior Economist at Chainalysis, explained that the slight decline in Black Network transactions was due to the closure of AlphaBay and Hansa, two "major markets" in the middle of 2017, which would have delayed early flows. from 2018. Grauer added:
The reason for this decline is more police activity … It would be misleading to think that this year the volume will decrease.
Why this statistic is bullish for Bitcoin
So you can get lost in the title and ask yourself why these non-insignificant statistics are an optimistic sign for BTC and the wider market / sector of cryptocurrency?
Well, let me explain. Although I do not agree with (a lot) of what is happening via the darknet, the rise in "illicit" transactions underlines an upward and optimistic trend of Bitcoin. Specifically, the monumental growth of Bitcoin's multi-faceted underlying fundamentals in 2018. So do not be fooled, even if the collapse in prices is heartbreaking, people continue to use BTC in their transactions, not just pure speculation.
According to previous reports from Ethereum World News, the data compiled by Jameson Lopp, Casa's technical director, pointed out that, from a fundamental point of view, 2018 was the best year yet for Bitcoin. Hashrate doubled, while a cumulative value of $ 410 billion was traded on "the most secure transaction settlement layer in the world". Bitcoin scaling solutions have also seen remarkable adoption rates. SegWit, a short-term "bandaid-esque" solution that further reduces the number of transactions in blocks, has seen an increase in use by 10% to 40% compared to 2018. The Lightning Network, a solution from Long-term sizing that leverages off-line ledgers to efficiently facilitate free, low-cost, scalable, immutable, and private transactions, increased to more than 500 BTCs.
And while 2019-specific statistics are rare and difficult to obtain, preliminary data indicate that the next 12 months will continue to see the cryptocurrency and blockchain flagship network continue to gain ground. This is not an unfounded speculation. According to our previous reports, Coinstar, a North American kiosk supplier offering tens of thousands of offers across Canada and the United States, recently joined Coinme, a new bitcoin vending machine, to implement their services at Coinstar terminals. From now on, more than 20,000 kiosks can buy BTC with their currency in reserve.
Title Image Courtesy of Noah Silliman Via Unsplash
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