A recent report by a Bitcoin technology company Bitfury indicates that the total value of Bitcoin activities performed on dark web has moved up by 65% over the year, and by 340% over thr last three years.
Compared to the first quarter of 2017 when dark net vendors realized $87 million in Bitcoin, the first quarter of 2019 witnesses a whopping upsurge recording of $240 million revenue made in Bitcoin, information from Bitfury’s Crystal blockchain analytical platform confirms.
According to Forbes, the figure also sprang up to $384 million this year. This is in spite of several achievement and activities of law enforcement agencies against them.
However, other cryptocurrencies (altcoins) like Litecoin and Monero have also been playing their parts. Compared to last year’s record, there was 25% reduction in the amount of Bitcoin the vendors received this year. Dark net vendors only made a cumulative of 47,000 BTC in Q1 of 2020.
Bitfury in the report said even though the value of the transaction rose due to surge in Bitcoin’s price, the usage of Bitcoin on the dark net web reduced.
Despite the fact that the Bitfury’s Crystal blockchain analyst platform is capable of monitoring Altcoins such as Ethereum, Litecoin and Tether, they have only chosen to focus their report on Bitcoin, Maria Khaustova the CEO of Crystal Blockchain had however promised via an email that analysis of altcoins would be included on their future reports.
Bitfury however confirms that Bitcoin has lost some crypto transactions performed on dark web to altcoins. The analytical platform further confirms that cryptocurrency exchanges with no KYC has been the major source of the BTC funds sent directly to dark web. Only 1% of transactions performed in 2020 came from a mixer source.
Due to decrease in the number of exchanges with no KYC, BTC sent from KYC-free exchange to dark web this year reduced by 30% comapared to 3 years ago.
Also, users of dark web are trying to conceal their Bitcoin transactions within the darknet against being dug out by exchanges that have FATF requirements, the report said.
Vendors after receiving Bitcoin growingly prefer to send it to another market or to send it to a mixer. 20% of the entire outflow from dark net market in Q1 2020 has been consumed by mixers, while KYC-free exchanges received 46% (76% reduction compared to Q1 2017), meanwhile the remaining 16% of the outflow were recycled into another market.
According to Maria Khaustova, the Bitfury Crystal blockchain platform have been able to trace the transactions of mixers like CoinJoin under certain conditions.