Across all the scams, hacks, and darknet market transactions surveyed by Chainalysis, the total number comprised less than 1 percent of all economic bitcoin activity in 2018, down from 7% in 2012. Could you just list out these dark web marketplaces and ask your security team to keep an eye on them? That’s certainly one strategy for dark web monitoring, but it can be inefficient, time-consuming, and lacks coverage for other marketplaces. Furthermore, other value-driven security tasks are likely to suffer when teams have to manually browse these marketplaces and hunt for threats or signs of your digital footprint. While transactions on the darknet are designed to be anonymous and untraceable, law enforcement and cybersecurity experts have certain methods to link transactions with individuals. It’s crucial to note that these methods are strictly performed by authorized entities like law enforcement or cybersecurity firms, as attempting to trace such transactions without legal authority would be illegal.
Darknet markets have become synonymous with anonymous online transactions, and one of the most common methods of payment used within these illicit platforms is Bitcoin. However, not all types of Bitcoin are accepted on darknet markets. In this article, we will explore the various types of Bitcoins that are accepted on these hidden marketplaces.
Cryptocurrencies have also given rise to a new set of challenges for governments to contend with, including concerns over criminal activity, environmental harms, and consumer protection. The deep web is the portion of the internet that is not indexed by standard search engines. It exists in contrast to the ‘clear net’ most consumers are accustomed to searching through Google. Common uses include non-indexed webpages for online banking, web email, and paywall-protected content. While executing the September 2012 fraud, ZHONG did not list any item or service for sale on Silk Road, nor did he buy any item or service on Silk Road.
This attention can be too much for some markets, which will voluntarily close rather than remain an obvious law enforcement target for too long. Before police shut it down, AlphaBay made history as perhaps the biggest dark web marketplace to accept Monero. At other sites, users have been calling on market administrators to offer newer, more private cryptocurrency options. Hacking vendors commonly offered to illegally access online accounts of the buyer’s choosing.
Bitcoin Types Accepted on Darknet Markets
Darkmarket: world’s largest illegal dark web marketplace taken down
1. Bitcoin (BTC)
The most widely accepted and commonly used cryptocurrency on darknet markets is Bitcoin (BTC). It is the original form of digital currency, known for its decentralized nature and pseudonymous transactions. BTC is accepted on almost all darknet markets due to its widespread popularity and ease of use.
In February 2022, the US Department of the Treasury (Treasury Department) issued a report on the study of the facilitation of money laundering and terror finance through the trade in works of art. In fact, the value transacted in bitcoin on darknet markets increased by 70 percent in 2018. This is revealed in a Chainalysis report that promises to “decode” the role of cryptocurrency in hacks, scams, and darknet markets. Given the inherent anonymity of these activities, an untraceable form of payment was necessary — enter Bitcoin and later, other cryptocurrencies. Bitcoin’s decentralization, encryption and public ledger blockchain technology made transactions nearly impossible to trace back to users. This caused Bitcoin to become the favored operandi of the Darknet, substantiating its clandestine ecosystem.
2. Bitcoin Cash (BCH)
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Bitcoin Cash (BCH) is a cryptocurrency that emerged as a result of a hard fork from Bitcoin in 2017. While not as widely accepted as BTC, BCH is still supported by some darknet markets. Its larger block size allows for faster transactions and lower fees compared to BTC.
3. Monero (XMR)
Not only did Darkweb serve as an information resource, but it also promoted apprehension and conspiracy theories. Deterioration in behavioral traits such as loneliness and gambling were more frequent and correlated to the use of the Darkweb [9]. During COVID-19, the illicit trade of vaccines was rampant, along with factitious proof of vaccination [10]. When shortages arose in regular marketplaces of various COVID-19 medications, the Darkweb showed their high availability and vice versa. This poses high public health risks, especially when regulatory bodies can no longer control prices and availability. With the pandemic stalling or halting activities in the physical world, similar repercussions were witnessed in Darknet markets as per some self-reported studies [11,12].
Monero (XMR) is a privacy-focused cryptocurrency that offers enhanced anonymity features. Although it is not technically a Bitcoin variant, Monero has gained popularity among darknet market users due to its strong privacy protocols. Several darknet markets accept XMR as an alternative to Bitcoin.
FAQs about Accepted Bitcoins on Darknet Markets
Q: Are other cryptocurrencies like Ethereum or Litecoin accepted on darknet markets?
A: While Bitcoin, Bitcoin Cash, and Monero are the most commonly accepted cryptocurrencies on darknet markets, some platforms may also support other cryptocurrencies like Ethereum (ETH) or Litecoin (LTC). However, their acceptance is far less prevalent than Bitcoin.
Q: Why do darknet markets prefer Bitcoin for transactions?
A: Darknet markets have historically favored Bitcoin due to its widespread adoption, ease of use, and availability on various cryptocurrency exchanges. Additionally, Bitcoin’s decentralized nature provides a level of security and anonymity that aligns with the objectives of these illicit marketplaces.
Conclusion
When it comes to conducting transactions on darknet markets, Bitcoin remains the most widely accepted cryptocurrency. Bitcoin Cash and Monero also enjoy some degree of acceptance within these hidden marketplaces. However, it is crucial to note that engaging in any illegal activities on darknet markets is highly discouraged and may result in serious repercussions.
