Research: Litecoin May Become the Top Cryptocurrency on the Darknet
Recent studies have shown that the use of Litecoin (LTC) for transactions on the darknet is becoming increasingly popular. This trend suggests that Litecoin has the potential to compete with Bitcoin and possibly overtake it over time. This may seem surprising, as most people associate the most anonymous coins with DASH and Monero. So, what’s driving this shift?
Researchers reached this conclusion after analyzing 150 different marketplaces, forums, imageboards, and other sites within the Tor and I2P networks.
Why Is Bitcoin Losing Popularity on the Darknet?
There are several reasons for this decline, which have been discussed previously. These factors are pushing darknet vendors to seek more convenient alternative payment options:
- Bitcoin is not anonymous
- High transaction fees due to network congestion
- Long transaction wait times (sometimes up to 2-3 days) because of network overload
- Rapid surge in Bitcoin’s popularity
- Sharp increase in blockchain transaction volume, leading to a congested network
It’s no secret that the darknet is a unique marketplace, and delays increase the risk that one party in a transaction could be scammed.
Why Litecoin?
Initial assessments suggested that DASH would be the second most popular coin for darknet transactions. However, more recent research contradicts this assumption. The image below (not included) shows the distribution of altcoins in various darknet deals. As seen, Litecoin accounted for about 30% of transactions analyzed across 150 deep web sites.
Litecoin’s reliable code allows it to be faster and more cost-effective than BTC, as miners can generate coins relatively cheaply. These two characteristics have given Litecoin an edge over Bitcoin. However, it’s important to note that LTC is not necessarily the best option for illicit payments. It faces serious competition from Monero, which is considered even more anonymous than Litecoin and other altcoins.
Bitcoin: No Longer the Darknet Trendsetter
Bitcoin’s rise in popularity began with the launch of Silk Road, where it became the standard payment method for mostly illegal transactions. Even after Silk Road’s shutdown, Bitcoin remained a popular coin, providing privacy for darknet users. However, a wave of Bitcoin thefts and darknet user arrests significantly eroded trust in the digital currency. Its integration into the mainstream financial system has also made it economically impractical for darknet transactions.
Litecoin, on the other hand, may be on the verge of reaching new heights as Bitcoin’s popularity continues to hit record lows. The same people who once promoted BTC are now abandoning it in favor of Litecoin as their preferred payment method for illegal deals. Litecoin is already being used on darknet marketplaces in Western Europe and Russia. Major darknet platforms are adding it to their list of accepted altcoins, and it’s only a matter of time before this digital currency achieves mass adoption on the “dark side of the moon.”