According to a report by the blockchain analytics firm Crystal Blockchain, so-called “darknet entities” sent $67 million in Bitcoin to various mixers in Q1 2020. This is a 65% increase compared to the transactions recorded in Q1 2019. The actual amount of Bitcoin dropped significantly in the same period.
- The amount of bitcoin (measured in BTC) transferred between darknet entities and other entity types declined in Q1 2020 compared to the same period one year ago; however, the value of the amount of bitcoin transferred (measured in USD) grew by 65%.
- This is not just due to the increase in the USD value of bitcoin from 2019 to 2020. The amount of money being transferred by darknet entities is still growing, and they are continuing to use bitcoin as a medium of transport. The mass adoption of bitcoin, as well as its ease of use and popularity, is a contributing factor as well.
- In Q1 2020, there was a rapid growth in the amount of bitcoin sent from darknet entities to mixers. During that same period, the amount sent in bitcoin to exchanges that require verification was reduced — seeming to indicate a reduction in the use of cryptocurrency exchanges for criminal and darknet activities in favor of more anonymous services like mixers.
- The share of bitcoin sent from one darknet entity to another also grew in Q1 2020. It is possible that darknet users are trying to hide their bitcoin flow inside of the darknet, avoiding detection of their activities. This also encourages darknet services to cooperate and grow their revenue internally.
Continue Reading the report: https://web.archive.org/web/20200715172849/https://crystalblockchain.com/articles/darknet-use-and-bitcoin-a-crypto-activity-report-by-crystal-blockchain