Dark Web Market Places Processed $500,000 in Bitcoin Transactions Daily in 2014

The Bitcoin is becoming increasingly popular to use, as the Bitcoin community is constantly expanding and the mainstream population is also beginning to see the benefits of using the cryptocurrency to pay with, as well as sending funds with.

But despite the massive increase in mainstream transactions and companies accepting Bitcoins completely legal and regulated, the amount of Bitcoins processed in the “regular” markets are not close to the same numbers as the underground markets process.

In 2013 we saw the biggest Dark Web market place, known as Silk Road, being shut down by the FBI. The feds had been infiltrating the organization over a longer period of time and arrested the alleged operator and founder of Silk Road.

While the FBI probably hoped for Silk Road to be one of the last market places to exist in the Dark Web, tons of sites continues to pop up and operate despite many being shut down all the time.

Now some official numbers have been released which shows that the Dark Web market places averaged $500,000 in Bitcoin transactions a day in 2014, ranging from $300,000 to $650,000 a day.

But despite the big numbers, it is still such a small portion of the overall illegal market transactions that it doesn’t make much of a difference – except for the Bitcoin. The Bitcoin has been associated with many shady things in the past and the people working towards creating a better picture of the cryptocurrency are not happy about this path continuing.

The Bitcoins anonymous nature makes it a very good way to sell drugs, weapons and other things illegally, but the sellers on average doesn’t really make any money, which in turn may cause them to leave it all together in the long run.

“About 70 percent of all sellers never managed to sell more than $1,000 worth of products. Another 18% of sellers were observed to sell between $1,000 and $10,000 but only about 2% of vendors managed to sell more than $100,000. In fact, 35 sellers were observed selling over $1,000,000 worth of product and the top 1% most successful vendors were responsible for 51.5% of all the volume transacted.” The report issued reads.

“Psychedelics, opioids, and prescription drugs are a little less than 10% of market demand each, although starting in November 2014, prescription drugs have gained significant traction—perhaps making anonymous marketplaces a viable alternative to unlicensed online pharmacies,” The report further states.

This numbers shows that more sellers are trying their luck on the Dark Web market places, but that very few actually succeeds in making money, which in the long run will drive people away from the market places and only a few sites will be left with the same “big guns” selling their stuff.

While not ideal for the Bitcoin as a whole, given the nature of the purchases being made, there’s still a positive aspect to take out of the story as it shows that the Bitcoin can work as an independent currency and handle large amounts of transactions with little to no fee and a high security level.

Once the Bitcoin distances itself from the illegal market sales and gains ground in the mainstream environment, then we will be able to see why it is the currency of the future.

Darknet Drug Marketplace Evolution Runs off With $12 Million – Bitcoin Price Plunges

The Bitcoin has had a rough year in terms of value. After reaching levels of $1,200 per Bitcoin in the end of 2013, the Bitcoin has since then plummeted in value due to multiple different factors, the primary ones being caused by the underground drug markest who has been involved in several scams as well as having been closed down by federal services.

Cases like the now closed down SilkRoad, where the FBI closed down the Darknet drug marketplace and confiscated all funds on the platform, took a rough hit on the Bitcoin. Around 144,000 Bitcoins were confiscated by the FBI and auctioned off to people willing to buy the coins around the world, which initially made the Bitcoin value decrease, but later on began stabilizing.

Now there’s a new case with an underground Darknet drug marketplace closing down, but this time it was not done by any federal government, but instead by the owners. Evolution was the leading drug marketplace on the Darknet, having many thousand customers and dealers selling their stuff there every day and was the best marketplace so far according to Mike Power, Author of “Drugs 2.0: The Web Revolution That’s Changing How the World Gets High”:

“Evolution was the best-designed, best-coded and best-administrated of all the darknet markets. It had the look and feel of a legitimate website – pages loaded quickly and uptime was very solid. The guys behind it were old-school hackers and carders from the Tor Carding Forum, and had good technical expertise.”

The owners of Evolution decided to run off with the funds that they held for both customers and dealers, funds that would usually be available for daily cash outs in an automated system. Initially they turned off the automatic withdrawal system but later on it came out that they had decided to scam everyone and run off with the money. It is estimated that a total of $12,000,000 in Bitcoins were stolen from the users, Bitcoins that will now be available for others to purchase.

While all of this sounds like bad news to the Bitcoin, it might be positive for the overall perception of the Bitcoin. The Bitcoin is becoming an increasingly popular method of sending funds to other people without having to pay massive fees as well as a popular payment method for companies for exactly the same reasons.

With more and more of the illegal underground marketplaces shutting down, the criminals may be forced to look elsewhere for a way to sell their drugs, illegal services or even just launder money. This will lead to a better public perception of the Bitcoin, as well as for governments, and increase the amount of users and value in the long run.

So while the Bitcoin took a plunge in terms of value after the scam, going from around $295 in value to $260 at the time of this article, it will bounce back. The Bitcoin and all the backers are determined to make this a success, investing heavily in making it as safe and secure as possible and comply with international verifications and regulations.

Within a distant future the underground markets will no longer be able to have any effect on the value of the Bitcoin and it will instead be controlled by the civilized markets, who are working hard to bring the Bitcoin to new emerging markets, to third-world countries and to the mainstream public. The future looks bright for the Bitcoin, despite the many hick-ups on its way.