A May 19 study by Crystal Blockchain Analytics shows that the total value of bitcoins transmitted in the dark network in USD has increased by 65% in the first quarter of 2020 despite the decline in transactions over the same period in 2019.
According to the message, The total value of Bitcoin (BTC) traded was 340% growth in three years. The analysis team claims that such numbers could explain the massive adoption of cryptocurrencies, due to its “ease of use and popularity” among users and entities of the Darknet.
Technology company Bitcoin also announced that the total amount received by Darknet locations fell from 64,000 BTC in the first quarter of 2019 to 47,000 BTC in the first quarter of 2020, while the total amount sent from those locations has decreased. from 64,000 BTC in the first quarter of 2019 to 50,000 BTC in the first quarter of 2020.
However, The numbers show that the actors on Darknet received and sent more money in terms of dollar amountsfrom $ 384 million in the first quarter of 2019 to $ 411 million in the first quarter of 2020. Bitcoin was worth $ 3,533 in the first quarter of 2019, compared to an average of $ 7,500 in the first quarter of 2020.
The popularity of alternative currencies is growing through transactions on the dark Internet
The report largely attributes the decrease in bitcoin levels to the fact that the use of altcoins in the dark network has increased in recent years.. However, Crystal Blockchain Analytics also mentions other factors such as Bitcoin’s growing market capitalization and “mass adoption”.
Another conclusion from the study was that the number of bitcoin dark web players sent to exchanges in the first quarter of 2020 that required identity verification decreasedand advocate the use of more anonymous services like blenders.
The report found that the amount of Bitcoin sent by Darknet sites through such exchanges has decreased “significant” from 14,073 BTC to 5,455 BTC.
Bitcoin remains the dominant cryptocurrency
Crystal Blockchain Analytics provided the following about the study:
“It is also worrying that companies in the darknet continue to increase the amount of Bitcoin (in real value of Bitcoin and USD) that is sent between them. These statistics show that Bitcoin continues to be a financial instrument for such companies.”
The analysis company also emphasizes that Although dark users and websites try to hide their transactions by mixing cryptocurrency withdrawal services, these activities are “easy” to monitor and identify. They also commented on the following:
“As a result, the impact of the stringent FATF and European Union regulations to combat these illegal activities is already evident. We expect these directives to change significantly as a result of these efforts in 2020.”
Cointelegraph contacted the Crystal Blockchain Analytics team for more details. This article will be updated accordingly if a response is received.
Use of Altcoin transaction cases related to criminal activity
Despite the increase in the activity of bitcoins that are exchanged over the dark network and As the study shows, the use of old coins for illegal crypto activity continues to make headlines.
Cointelegraph has dealt with the case of the South Korean child porn network “Nth Room” and the widespread use of cryptos such as Monero (XMR), which has an infrastructure that protects the identity of such transactions.
According to the authorities involved in the investigation, the use of private tokens makes it difficult for investigators to disclose to the people behind the transactions, which has led to a wave of Monero enforcement on the South Korean stock exchanges.
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