Litecoin Next Main Dark Web Currency?
What it would mean for Litecoin if it becomes the next dominant dark web currency is not clear. However, that is what a new study carried out by a team from Recorded Future suggests.
The team includes software engineers, data scientists and technical business people. Their expertise is in information security, intelligence, analysis, and visualization. They cite that Bitcoin has become unusable on the dark web for its slow payment completion and exuberant payment. This is because of Bitcoin’s meteoritic rise in popularity globally since mid-2017. It placed an enormous load on the blockchain network and the cost of transaction increased ten-fold or more for smaller payments. As a result, users who helped establish Bitcoin as a unified payment instrument across the dark web now see it as a roadblock. Hence, the underground economy’s need of a suitable alternative.
The team’s analysis covered 150 prominent message boards, marketplaces and illicit services. They found that Bitcoin still remains the gold standard in the dark web as it is acceptable by all vendors for payment. Litecoin, on the other hand, emerged as the second most popular currency. Their study shows 30% of all vendors who run alternative payment methods are willing to accept Litecoin. Dash comes next with 20% followed by Bitcoin Cash with 13% of vendors trusting it as a payment method.
The research proved wrong an initial assessment of underground chatter in which Dash was tipped to be the next major dark web currency. It also sheds light on the view that using Litecoin on the dark web could lead both ways – good or bad – for its market.
Recorded Future’s research raises the debate on whether “dark web” is synonymous to being malicious or criminal. It also brings to fore questions of why many dark web users embraced Monero in the first place. Its association with underground activities could be a negative. Litecoin is said to have had cheaper transactions and seems easier to use. It is also considered to have better integration with hardware wallets. Its acceptance and use as the currency of dark web could improve its market stance in the next six to 12 months.
The crypto market has been generally bearish of late. Aside that, Litecoin has tanked recently. It drops Monday March 26 after news that payments processor LitePay has ceased operations. Its founder, Charlie Lee, apologised “for having hyped up this company” and vowed “to do better due diligence in the future.”