High transaction costs and extended delays are the reasons bitcoin is losing popularity among cybercriminals. Dark Web users are exploring alternatives, and Litecoin comes as a new favorite.
A sharp rise in Bitcoin’s popularity in 2016 significantly increased the number of transactions within the system, putting immense pressure on the blockchain network, which in its turn led to delays in payments. These delays can present a substantial problem to the darknet market, which is known to be especially volatile and risky.
Andrei Barysevich, Director of Advanced Collection at Recorded Future, explains the problem:
“If you tell someone I am sending you the payment and 24 hours later, he still hasn’t received his money, he thinks that you screwed him, he thinks you probably received the goods, but you never intended to pay. So it creates a whole bunch of problems where people were getting flagged as dishonest businessmen and their reputation would go down”.
Litecoin, despite being based on the same algorithm, does not have these shortcomings. It is still very fast, cheap and has the support of all major cryptocurrency exchanges. That’s why Litecoin takes the first place in Recorded Future Deep Web analysis, with 30% of websites accepting this coin. Second place takes Dash with about 20% of the market. Bitcoin Cash comes third with 13% of vendors choosing it as a payment method.