Chainalysis: Darknet Market Activity Nearly Doubled Throughout 2018 (bitcoinmagazine.com)
Here’s the best tl;dr summary we could make of bitcoinmagazine’s coverage of the recent Chainalysis report:
“Law enforcement has been working hard to stop illicit activity on darknet markets, and there have been some notable successes like the closure of AlphaBay,” the report notes.
Darknet markets, the online market places for illicit goods and services that operate on hidden services and use bitcoin for payments, have been around in their current form since 2011, when Ross Ulbricht founded Silk Road. Although this pioneering darknet market was shut down by law enforcement in 2013, others have since taken its place.
According to Chainalysis data, trading volume at identified darknet markets was over $700 million dollars worth in 2017 – where Silk Road never accounted for more than $200 million a year.
“Darknet market activity has been remarkably resilient over the last few years, despite continued efforts by law enforcement to shut down illicit activities,” Chainalysis writes in its report.
While bitcoin is still the currency of choice on most darknet markets, Chainalysis does believe that this type of activity has come to constitute a much smaller share of total bitcoin usage over time. While up to 7 percent of transacted bitcoin value in 2012 and 2013 — the peak of the Silk Road — was related to darknet markets, this is now well below 1 percent, Chainalysis estimates.
“Darknet market activity is relatively price inelastic; that is, you don’t see a drop in this type of activity when cryptocurrency prices fall. In fact, in 2018, when Bitcoin volumes dropped by 78%, darknet market activity nearly doubled,” the report notes.
Original article reduced by: 72%
Read the full article here.
Related story: VanEck & Bitcoin ETF Hopefuls Refile Application To U.S. SEC (newsbtc.com)
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