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The use of cryptocurrencies, such as Bitcoin, has gained significant popularity in recent years. While Bitcoin offers a decentralized and secure way to manage transactions, it has also found its way into the dark corners of the internet.
Average price of selected illegal digital products for sale on the dark web as of March 2023
Darknet Markets and Bitcoin
Darknet markets, commonly referred to as the “dark web,” are online platforms that operate anonymously and require specific tools to access. These marketplaces allow users to buy and sell various illegal goods and services, ranging from drugs and weapons to hacking tools and stolen data.
Exclusive analysis
So the anonymity of these marketplaces is matched with the alleged anonymity of cryptocurrencies. In operation from approximately 2011 until 2013, Silk Road was used by numerous drug dealers and other unlawful vendors to distribute massive quantities of illegal drugs and other illicit goods and services to many buyers and to launder all funds passing through it. In 2015, following a groundbreaking prosecution by this Office, Silk Road’s founder Ross Ulbricht was convicted by a unanimous jury and sentenced to life in prison. Also known as cryptomarkets, DNMs are multi-vendor online illicit global commerce platforms that mainly specialize in the sale of illicit drugs.
Bitcoin has become the preferred currency on darknet markets due to its pseudonymous nature and ease of use. It allows both buyers and sellers to remain relatively anonymous while conducting transactions securely without involving traditional financial institutions.
- Bitcoin aficionados now believe the cryptocurrency is more useful as a new kind of alternative asset, like gold.
- The digest is the base32 encoded value of the first eighty bits of a SHA1 hash of the identity key for a hidden service.
- Deposited funds would be turned into “chips” (small tokens with equivalent value), which were then mixed together – thereby anonymizing all trails to where the initial funds originated.
- For example, Bitcoin saw $20 billion more trading volume every day throughout 2019 on average, compared to the previous year.
Accepted Bitcoins on Darknet Markets
As the darknet evolves, so does its acceptance of different types of Bitcoin. The most widely accepted form of Bitcoin on these platforms is Bitcoin (BTC), the original cryptocurrency created by an unknown person or group known as Satoshi Nakamoto.
It was initially conceived by computer scientists and researchers, such as Paul Syverson, Michael G. Reed, and David L. Chaum, who aimed to develop a network that prioritized privacy and anonymity. In the mid-1990s, The Onion Routing project, led by these pioneers, laid the foundation for what would eventually become the Dark Web. The project aimed to create a system that could protect sensitive government communications and allow individuals to browse the internet without revealing their identity or location. Virgin Airlines and Virgin Mobile, subsidiaries of Virgin Group both accept Bitcoin as payment for services.
However, with the rise of alternative cryptocurrencies, some darknet markets have started accepting other forms of digital currency. Here are a few notable ones:
Down goes Hydra
Bitcoin Cash (BCH)
A non-participant ethnographic qualitative study of prodrug websites on the surface web was conducted using search engines such as DuckDuckGo and Google. Four themes and 14 categories were generated and discussed, including information on accessing the deep web, the Darknet online drug trading sites, search engines, and cryptocurrencies. The paper is a systematic guide for addiction professionals on the deep web and online drug marketplaces. Aside from drugs, illegal wildlife trade also happens on the Darkweb, although the extent of such trade is lower than the open trade on the surface web. One such study [26] found one case of illegal trade related to wildlife related to the sale and discussion of a cactus species used for its hallucinogenic properties. The work discusses the ineffectiveness of enforcement against illegal wildlife trade and the need for more efforts.
Bitcoin Cash is a fork of Bitcoin that emerged in 2017. It offers faster transaction times and lower fees compared to Bitcoin. While not as commonly accepted as Bitcoin, some darknet markets have started allowing transactions with Bitcoin Cash.
Monero (XMR)
Monero is a privacy-focused cryptocurrency that provides enhanced anonymity and untraceability. Due to its superior privacy features, Monero has gained popularity on darknet markets and is accepted by several vendors.
Zcash (ZEC)
Monero emerges as crypto of choice for cybercriminals
Zcash is another privacy-centric cryptocurrency that offers enhanced confidentiality and selective transparency. It allows users to shield their transaction data, making it a popular choice for those seeking additional anonymity on darknet markets.
Litecoin (LTC)
Litecoin, often referred to as the “silver to Bitcoin’s gold,” is a peer-to-peer cryptocurrency that offers faster transaction confirmation times compared to Bitcoin. While not as widely accepted as Bitcoin, some darknet markets do allow transactions with Litecoin.
Conclusion
Darknet markets continue to evolve alongside the advancements in the cryptocurrency sector. Bitcoin remains the most commonly accepted form of digital currency on these platforms, but alternative cryptocurrencies such as Bitcoin Cash, Monero, Zcash, and Litecoin are also gaining traction.
It’s important to note that engaging in illegal activities on darknet markets is highly discouraged and punishable by law. This article solely aims to provide information regarding the acceptance of different cryptocurrencies on these platforms.
