According to a study by data firm Chainalysis, even if the price of cryptocurrency collapses, the use of bitcoin as a form of payment is still doubled in the dark market market website in 2018, users can buy from illegal drugs to Anything with a fake ID card.
According to the data from Chainalysis, bitcoin transactions in the dark market reached an average of $2 million per day in 2018, almost double the amount at the beginning of the year.
Chainalysis also found that the overall bitcoin flow into the dark-net market fell from $700 million a year ago to $600 million in 2018. Kim Grauer, a senior economist at Chainalysis, said in an interview that the decline was due to the closure of AlphaBay and Hansa, the main markets in mid-2017, which hindered the increase in trading volume until the beginning of last year. Resume steady growth.
“The reason for this decline is more law enforcement activities on a global scale,” said Grauer. “If you think that this year (quantity) will fall, it will be misleading.”
Bitcoin is the largest cryptocurrency and is a popular form of payment in the dark market because users do not need to disclose their identity.
In 2017, Bitcoin was popular among speculators, and speculators traded other virtual currencies online and hard currency such as the US dollar. Bitcoin prices peaked in December 2017, just over $20,000, and have now fallen more than 80% from their highs.
While the volatility of Bitcoin has attracted speculators, it has prevented it from becoming a broader form of payment in mainstream business. Chainalysis’s earlier data shows that as of September, the value of Bitcoin handled by major payment processors has shrunk by nearly 80%.
Grauer said that crazy price fluctuations did not prevent dark-net users from using Bitcoin.
“For those who want to buy something in the dark market, the fact that bitcoin prices fluctuate is not important,” said Grauer.
However, several factors may undermine the growth of bitcoin inflows into these markets this year. Grauer said that one of these points includes that law enforcement agencies will close more markets.
Source: Financial website