Bitcoin Dark Web Transacted Value Spikes By Over 65% in 2020

Tony "The Bull" Severino

5 years ago

2 mins read

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The cryptocurrency market is like the Wild West, where anything goes and crime is everywhere if you aren’t careful. While Bitcoin got its start on the dark web, its use across the underbelly of the internet has only increased in 2020.

Could the growth of Bitcoin revenue on the dark web be partly responsible for the recent bullish momentum?

Blockchain Analysis Reveals Growing Dark Web Bitcoin Revenues

Bitfury’s blockchain analysis product, Crystal, provides clear data about the inflow and outflow of BTC and other cryptocurrencies sent to and from exchanges and other wallets.

Thanks to the full transparency distributed ledger technology provides, details about these transactions, senders, and receivers aren’t difficult to come by.

While Bitcoin does indeed add a layer of pseudo-anonymity through cryptographic addresses, behaviors, and accounts connected to exchanges can piece together a trace back to the original owner.

Data from Bitfury claims that although the overall number of Bitcoins being transacted across Q1 2020 is down year-over-year, the actual value being sent to dark web vendors is up 65%.

According to the data, dark web vendors were sent a cumulative 47,000 BTC in the first quarter of the year. The reason for the decline, Bitfury attributes to crypto users becoming savvier and switching to other altcoins such as Monero to further obfuscate their transaction details.

While altcoins are indeed gaining popularity with dark web users, Bitcoin still reigns supreme in terms of overall usage.

What OPSEC? Crypto Users Are Sending Fund To The Dark Web Directly From Exchanges

Users are said to be sending BTC directly from exchanges that required KYC at registration, defeating the point of using the dark web at all.

These types of transactions are highly traceable, as any exchange accounts with KYC are typically tied to a bank account or involved submitting identification at the time of signup.

More than half of the Bitcoin sent to the dark web came directly from exchanges.

Government entities and law enforcement are becoming increasingly superior at tracing blockchain transactions, or are turning to companies like Bitfury’s Crystal and other blockchain analytics firms such as Chainalysis to assist with tracking crypto users.

Even the IRS has contacted this type of company in order to crack down on taxpayers not claiming their crypto earnings.

Things get even more complicated for law enforcement, however, once the BTC makes it into the hands of better-prepared criminals. These vendors are then sending their received Bitcoin to mixers, to further hide any trace of their activity.

It’s only those who are sending BTC from exchanges that are at risk of having their Bitcoin transaction traced.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.