Cryptocurrency and the Black Market – What you should know!

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The black market and money go hand-in-hand. This is most evident in terms of crime and illegal activities and when it deals with digital platforms, it could get harder to detect (or in some cases, easier depending on how one sees it).

Understanding the black market

To know what this is all about, you must know what the black market is. While the common assumption that the black market is all about drugs and guns, it is more obvious than you might think. They involve things that are happening around you and could be as simple as hiring illegal employees. When you pay a friend (without taxes) for helping you to mow your lawn, you are in some way contributing to black-market activities. Put that on a larger scale and you have a crime-related segment in your hands.

Connecting cryptocurrencies with the black market

In a recent study, it was reported that nearly 45% of transactions carried out using Bitcoins were used for illegal purposes. This however is still being disputed although it cannot be fully dispelled. One thing you can be sure of is that cryptocurrencies are directly and indirectly connected with the Black Market in many ways.

The main issue about digital currency is there are secure transaction capabilities that can be anonymous. If you have been finding out more about these activities, you might come across something called The Silk Road. It is not the first black marketplace around following the likes of The CyberArms Bazaar, the Farmer’s Market and The Hive, all of which have been linked with illegal and criminal activities or sometimes more fondly known as the Black Market.

The others have been around before Bitcoin while The Silk Road has facilitated many more. Those who know their way around can now buy illegal products ands and services as well as drugs like e-retailers. To date, Bitcoin remains the most used cryptocurrency in the black markets. Users in the Dark Web have been using Bitcoins to buy fake IDs, drugs and even weapons. While Bitcoin is the easiest to obtain, it is also becoming easier to track.

Several cryptocurrencies have since developed more ‘secure’ functions, allowing them to be more anonymous. Other known cryptocurrencies that have reportedly been used and preferred because the identity of the trader is more concealed include Dash, ZCash and Monero. Meanwhile, CloackCoin is already being used because it is known to provide more and better privacy for the users and traders.

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