Bitcoin was once considered the dominant currency in illegal transactions. However, it is now replaced by privacy coded currencies such as Monero (XMR), Zcash (ZEC), Dash and Stablecoins.
The main reason for Bitcoin’s decline in illegal activities is its transparency.
Reasons for the shift from bitcoin to privacy currencies
Bitcoin (BTC) has once controlled illegal activities on the dark web, such as Nucleus Marketplace or Brian’s Club. the Report from TRM LABS He pointed out that Bitcoin represents 97 % of the total coded currency associated with illegal activities in 2016.
However, by 2022, this number decreased sharply to only 19 %, indicating a major shift towards other encrypted currencies.
According to TRM LABS reportThe illegal encrypted currency activities that involve bitcoin will decrease to only 12 % by 2024. TRX (TRX) occupies the highest position by 58 %. In another report of ChaINALYSIS, Stablecoin is now 63 % of the total illegal transactions. Bitcoin’s use in illegal activities has also recorded a significant decrease.
White House market, one of the largest dark market on the InternetCES, stopped accepting Bitcoin and using it exclusively Monero (XMR) for transactions in 2020.
“Bitcoin solutions were supposed to be only to help move to XMR, as we are worried, it was done, so we are now only Monero, as planned,” said the White House market.
The Helgeon researchers discovered $ 11 billion in illicit trading using USDT in the HUIONE guarantee market in Cambodia in July 2024. It followed the application of Japanese law Monero, which represents the first detention in the country linked to the analysis of Monero transactions.
The decision was driven by Bitcoin restrictions, especially the Blockchain transparency. This step reflected a strategic shift in the dark web markets and highlighted the rise of privacy currencies such as Monero, which was designed to provide anonymity.
popularity Dark internet private currencies
Bitcoin’s decline in illegal activities is not by chance, but it stems from its inherent boundaries. First of all, Blockchain in Bitcoin is the notebook of the General Professor. When combined with additional data such as IP addresses or exchange records, each transaction can be tracked.
This transparency enabled law enforcement agencies, such as the FBI, to use Blockchain analysis tools from Chainalysis and Eliptic to dismantle the main dark web markets. An example of this is the closure of the Silk Road in 2013, the Fababay in 2017, and Hydra in 2022, and the hideout market in 2024.
In addition, Bitcoin faces technical challenges, including high transaction fees and slow confirmation times. On the contrary, privacy currencies like Monero, ZCash and Dash benefit from advanced technologies to ensure high levels of lack of identity, which makes tracking of transactions very difficult. Search from Scienceedirect It indicates that privacy currencies are closely related to the dark traffic, which increases their popularity in illegal markets.
Sides of the transformation into privacy currencies
On the positive side, a decrease in the role of bitcoin in illegal activities may improve its reputation as a legitimate financial tool. This may accept broader and attract more users and investors.
However, the shift from Bitcoin to privacy and nails has made it difficult for law enforcement agencies to follow and prevent illegal transactions. Despite the advanced Blockchain analysis tools that can detect transactions paths through mixers and panels, dealing with Monero and other privacy coins remains a major challenge.
International organizers check the coins of privacy and stablecoins increasingly. Some countries have complete privacy currencies, while Stablecoins is totally more supervisory.
The transition from Bitcoin to privacy and stablecoins on the dark web network is a clear trend, driven by the increasing demand for not disclosing its identity and efficiency in illegal transactions. While Bitcoin still plays a role in certain crimes related to encryption, its transparency makes it less attractive to the dark network.
At the same time, Monero, ZCash, Dash and Stablecoins are favorite options due to its augmented and privacy security. This trend is major challenges for law enforcement agencies while leading progress in Blockchain analysis tools.
However, it raises concerns about the use of cryptocurrencies in illegal activities, which requires a balance between technological innovation and organizational control to ensure transparency and security in the digital financial ecosystem.
Disintegration
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