Why does the dark web use cryptocurrency?
Cryptocurrency and the dark web are often mentioned together. The reason is practical, and the common assumption about anonymity is only half right.
Why crypto fits
Cryptocurrencies let people transfer value without a bank approving it, across borders, without revealing a name up front. For a space built around avoiding central intermediaries, that is a natural fit.
This ties in closely with a guide to the layers of the web.
The anonymity myth
Most cryptocurrencies are pseudonymous, not anonymous. Transactions are recorded on a public ledger, and analysis can often link them back to people. It is far less untraceable than films suggest.
Frequently asked questions
Is cryptocurrency anonymous?
Usually pseudonymous, not anonymous. Public ledgers can often be analysed to trace activity.
Is using cryptocurrency legal?
In most countries yes, though rules vary. Its use does not make illegal activity legal.