Market Data
And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. People who get phished do not have the skills to cross-check links on “official sources” because their official sources are repositories of phishing links, and they even less know the rules of the auto-mod. The best course of action is therefore to put any warning you need, but leave the link up. Hooked, victims arrive at the phishing site and are fooled into entering usernames and passwords. They’re then often forwarded on to the real site so they might not even know what’s happened.
Banned substances, guns and ammunition, fake passports, and even fake fiat currencies continue to remain available on the internet’s literal darkest corner in return for untraceable cryptocurrencies like Bitcoin and Monero. Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. “The whole use issue of digital currencies has become a big industry. Bitcoin isn’t this weird, odd currency that’s being used on the dark web,” said Paul Triolo, practice head of geotechnology at consulting firm Eurasia Group. “Since the early days of bitcoin on some [levels], the world has changed quite a bit.” In the last three years, new digital currencies such as monero have emerged in an effort to increase privacy.
However, with all its advantages, Litecoin does not offer any additional security to its owner. As we described in our previous blog, the underground economy is dependent on smaller transactions in its day-to-day operations, with the cost of the average product or service beginning between $50–$300. With the addition of exuberant transaction fees, the price of such products and services suddenly inflates tremendously. The Hydra listing shown above advertises a service, where in return for a cryptocurrency payment, the vendor will bury bales of vacuum-packed physical cash “5-20 cm under the ground”. The exact GPS coordinates are shared with the buyer, so they can dig it up at their convenience.
Understanding Bitcoin Acceptance in Darknet Markets
While the concept of the dark web is as old as the internet itself, it was the emergence of private browsers like Tor in the late 2000s that fueled the wild adoption of such a radical approach of connecting to the internet. Cards go for anywhere from $2 to $15, with the average sitting at about $10. Another influence on price is the amount of the cardholder’s personally identifiable information (PII) that comes with the card, such as street address and phone number.
The concept of cryptocurrencies has transformed various facets of online transactions, particularly within the darknet markets. These marketplaces operate outside the reach of conventional law enforcement and often require specific forms of payment due to their nature. A common question that arises is what bitcoins are accepted by darknet markets? In this article, we will explore the different types of Bitcoins and their acceptance in these hidden realms.
On the other hand, Monero is designed to be anonymous and does not keep any record of previous transactions. But its share of the overall market may diminish in the future, given the mostly positive pronouncements about other currencies by vendors in Recorded Future’s report. This section of the market includes what one would expect with subscriptions and pornographic content available for purchase and download. One listing appears to offer one-on-one guidance for the “private customization for telemarketing SMS” – which is likely a customized SMS hijacking service. Another listing, titled “Taiwan personal data 730,000 names, phone numbers, email addresses, birth dates,” is notable given tensions between the China and Taiwan and likely a result of recent cyberattacks against the country.
He has covered the information security and privacy sector throughout his career. A common rule of thumb is to devote only a small portion of a diversified portfolio to risky investments such as Bitcoin or individual stocks. We believe everyone should be able to make financial decisions with confidence.
If a market runs for long enough, it’s likely to be seized and its operators arrested. Ten years ago, the first dark market, The Farmers Market, appeared on the Tor network; eight years ago its eight founders were arrested, seven pled guilty and the leader was convicted to 10 years in prison for selling narcotics and laundering money. Ross Ulbricht, aka Dread Pirate Roberts, allegedly operated Silk Road—the first large scale dark market with over 100,000 customers. Ulbricht was also charged with a murder for hire plot and was sentenced to a double life sentence plus forty years without the possibility of parole.
1. Types of Bitcoins Used in Darknet Markets
In the context of darknet markets, it’s crucial to understand that not all bitcoins are the same. Here’s a list of commonly accepted forms:
- Standard Bitcoin (BTC): The original form of Bitcoin, widely accepted across most darknet marketplaces.
- Bitcoin Cash (BCH): A hard fork of Bitcoin that is accepted in some markets for its faster transaction times.
- Wrapped Bitcoin (WBTC): A tokenized version of Bitcoin used mainly in decentralized finance (DeFi) platforms, but occasionally accepted in certain darknet transactions.
- Litecoin (LTC): While not Bitcoin, some markets allow Litecoin as an alternative due to its similarity and lower transaction fees.
2. Factors Influencing Bitcoin Acceptance
Several factors dictate the acceptance of different types of Bitcoin in darknet markets:
- Notably, the number of multisellers suffers the largest drop of -99% by the end of the first quarter of 2018.
- In fact, there’s no evidence that Hydra and Kraken were developed by the same team.
- However, we also see a significant uptick in the amount of bitcoin going to mixers, with their share more than doubling from approximately 5% in 2019 to approximately 13% in 2020.
- Today’s action against Hydra and Garantex builds upon recent sanctions against virtual currency exchanges SUEX and CHATEX, both of which, like Garantex, operated out of Federation Tower in Moscow, Russia.
- Transaction Speed: Markets favor bitcoins that facilitate quicker transactions to enhance user experience.
- Fees: Lower transaction fees attract market operators to accept specific bitcoin variants.
- Privacy Features: Some variants offer better anonymity, making them preferable in a privacy-centric environment.
3. Popular Darknet Markets and Their Payment Policies
Different darknet markets have varying payment policies regarding Bitcoin and its alternatives. Here are a few notable platforms:
- Silk Road 3.0: Primarily accepts BTC, offering a blend of goods and services.
- Dream Market: Accepts BTC and BCH, catering to a vast clientele with diverse offerings.
- Market X: Focuses on BTC but is open to accepting wrapped variants due to increasing popularity.
FAQs
What is the most accepted form of Bitcoin on darknet markets?
The standard form, Bitcoin (BTC), remains the most widely accepted currency across various darknet platforms.
Are all bitcoins equivalent for transactions?
No, different types of bitcoins may vary in acceptance based on transaction speed, fees, and privacy features.
Can I use Bitcoin Cash in darknet markets?
Yes, Bitcoin Cash (BCH) is accepted in some darknet markets as an alternative to standard Bitcoin.
What is the significance of Wrapped Bitcoin in this context?
Wrapped Bitcoin (WBTC) serves as a bridge between Bitcoin and decentralized finance, accepted by select markets favoring tokenized transactions.
In conclusion, understanding what bitcoins are accepted by darknet markets requires a nuanced approach to the different types of Bitcoin available. Awareness of their characteristics allows users to make informed choices in navigating these unconventional marketplaces.
