Darknet Bitcoin Activity Grew by 65% Over the Year

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • A report from Bitfury‘s Crystal blockchain analytics platform describes the use of bitcoin by darknet entities.
  • When we scarp the data of Bitfury’s Crystal blockchain analytics platform, in the first quarter of 2019, the darknet vendors rated in an increasing $240 million in bitcoin.
  • The buyers are deviating toward other cryptocurrencies such as Monero and Litecoin.

A report from Bitfury’s Crystal blockchain analytics platform describes the use of bitcoin by darknet entities. According to Bitfury, the overall value of Bitcoin transacted on the dark web is 65% over the year. However, the value is around 340% over three years.

Comparing the first-quarter report

When we scarp the data of Bitfury’s Crystal blockchain analytics platform, in the first quarter of 2019, the darknet vendors rated in an increasing $240 million in BTC. This is somewhat very up from $87 million in the Q1 of 2017.

Besides this, the figure has outperformed in 2020 to $384 million. In the first quarter of 2020, Darknet vendors received 47,000 bitcoin which was 255% less from the same bitcoin entries this time last year.

The buyers are deviating toward other cryptocurrencies such as Monero and Litecoin. This may be to escape the bid of the exact blockchain analytics that Bitfury is running. The report further says the fall in the sent and received BTC may be due to the increasing popularity of altcoin usage by darknet entities.

The report focuses on Bitcoin

Moreover, the total value transacted is growing as Bitcoin’s price is increasing. According to Marina Khaustova, CEO of Crystal Blockchain, Bitfury’s report focuses on Bitcoin, although Crystal can monitor Litecoin, Ethereum, and Tether, but not Monero.

The report has no figures for altcoin use but the future repots will include, added Khaustova.

Though bitcoin loses some share to altcoins, yet it is the leading currency on the dark web.  As per reports, the majority of users are sending bitcoin directly from the exchanges with no KYC requirements. In 2020, 45% of bitcoin has come from the exchange that is  KYC free.

The funds sent between the markets are also increased. Almost all darknet market has built-in wallets for their user accounts. When a question comes if Bitfury’s Crystal could track CoinJoin transactions, Khaustova stated under certain circumstances, they have been able to unravel mixer transactions. However, this is not always the same in all cases.

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