Bitcoin and other cryptocurrencies are often looked at as investment instruments by various people while a lot of them frequently use it for daily transactions too. However, with the COVID-19 crisis looming on, the usual spending of Bitcoin has reduced drastically. The darknet and Bitcoin have often been in the news together at such times. However, to everyone’s surprise, this time the darknet activities are very low.
Darknet users often deal in Bitcoin to complete their transactions for buying illegal goods and drugs and aren’t bothered with the market volatility at all. In the past, the number of darknet activities used to remain the same despite market volatility. However, this time the scenario has changed.
Darknet and bitcoin: Obvious reasons for low activities?
While the fact that darknet activities have been limited is surprising, the reasons behind this are quite obvious. Someone who has bought Bitcoin for $8000 or $9000 won’t be cashing it out at $6500 range, unless very necessary. Other reasons that can be cited is that the COVID-19 pandemic has perhaps got people thinking more about their health rather than buying illegal drugs.
Also, a lot of European and Asian countries are under complete lockdown due to the pandemic, which has affected the business overall. One more reason that is coming out on the top is that the pandemic has given way to a lot of scams and fraudulent activities, due to which agencies like the FBI, Interpol, and others are more active than ever.
Darknet and bitcoin transactions have been clearly lowered due to the pandemic. However, if we look at some other trends affected by the pandemic, the normal market and fiat transactions have also taken some damage. People are only buying essential goods for themselves. In countries like India, where there is a total lockdown, online shopping has also taken a huge hit after temporarily suspending its operations in most parts of the country.