Chainalysis: Even Criminals Are Getting Out of Bitcoin

One of the greatest misconceptions about cryptocurrency around was that it was only useful for crime. That wasn’t a hard misconception to have; the major media was slamming the hysteria button every time a new bit of ransomware cropped up that demanded a payoff in bitcoin. Now, however, the next time such a ransomware request hits, the criminals at the other end may not be demanding bitcoin as many are dropping out, based on a report from Chainalysis.

There’s plenty to not like about the bitcoin market right now: volatile prices, increasing length of transaction processes, bigger fees and plenty more. The Chainalysis study found that bitcoin transactions on the “dark web” were actually down from around 30 percent to just under one percent, meaning most of the criminals who would have trafficked in bitcoin are now looking for alternatives.

There are other reasons for this, of course; it’s not just a matter of bitcoin’s inherent issues. Since bitcoin’s impressive runup of 2017, more people are buying into bitcoin, but holding it instead, in advance of predictions of million-dollar bitcoin.

Criminals, meanwhile, are looking into lesser coin for transactions, particularly Dash, Monero and Zcash. With faster and cheaper transactions, not to mention greater availability and anonymity, these currencies are proving popular with the criminal set. That doesn’t mean a complete disconnect from bitcoin, however, as we’ve recently seen reports of criminals out to specifically steal bitcoin. Small wonder, with a single bitcoin worth $11,288.30 as of this writing.

It’s not surprising that the criminal set would be branching out. We’ve seen a host of new coins step in to take their shot at becoming “the next bitcoin” that would turn pennies into millions in the space of a few years. For criminals to branch out isn’t surprising; everybody else is. Investors and speculators—due disclosure, I’ve said it before but I’m in a bit myself—are branching out too, each hoping that they can get in on that “next bitcoin” before it starts its run at $20,000 per or whatever.

Cryptocurrencies are fundamentally changing the landscape of mobile payments, and no matter if you’re coming by them honestly or not at all honestly, most are still looking to land a shot at the next big thing.

Note: The link in the article leads to a blog article. The mentioned report can be downloaded from that blog article.