While those trading Bitcoin rejoiced over its price peaks, the darknet market AlphaBay recently announced it would begin accepting Ether, the cryptocurrency more popularly known as Ethereum or ETH.
Insiders likely knew this would happen, and since the currency has gained value over the past few weeks, this adoption by AlphaBay could not have come at a better time.
Following through with its announcement earlier this year, AlphaBay began accepting ETH for making deposits and withdrawals on May 1.
Mixed Reactions from the Community
The move by AlphaBay has evoked a range of reactions from those who frequently trade in these cryptocurrencies, as well as from some observers who follow the trends in the trade.
One point of concern for many users is the site’s reputation. AlphaBay is known as an online marketplace for selling and buying illicit drugs.
The second set of apprehensions come from people who say ETH itself is a currency traded without permissions, and the operators of the currency don’t offer privacy for transactions.
To be more specific, there have been instances in which companies prefer not to use the currency for trading, so they turn it down.
Though the currency made a recovery and returned to full operations, AlphaBay could have avoided taking this currency on board. Some see the decision as reflecting a lack of values and principles on the part of AlphaBay.
There are others who generally support the move, and their take is based on the premise that Bitcoin is also going through some turbulent times.
Ethereum offers an alternative currency for completing transactions on the site. For the record though, there is a third alternative in Moreno, available on AlphaBay.
The trouble with BTC right now is that transactions are taking too long to complete.
Additionally, the fee charged per transaction has risen, much to the disliking of users within this darknet market. The general refrain from this segment of people is that the use of the currency on AlphaBay cannot be stopped by the ETH’s community, even if they object to it.
Ether Could Gain through This Move by AlphaBay
AlphaBay’s decision can be examined from a different perspective, as well. ETH is the second largest traded cryptocurrency after Bitcoin or BTC.
The traction and acceptability it has received from mainstream and frontline companies like Microsoft, BP and JP Morgan has only strengthened its claims.
This is mainly because the currency has managed to offer smart contacting solutions that work for those carrying out transactions.
It is understood that financial powerhouses are already busy putting in place dedicated applications on their websites to handle ETH-based transactions.
The formation of the Enterprise Ethereum Alliance is also cited as a justification for the recognition AlphaBay has accorded to Ether.
Data indicates that some 90,000 transactions were done in one day recently, transferring almost a billion US Dollars in value terms.
Hacking, Theft and Forking That Occurred with ETH
AlphaBay users who don’t favor transactions using Ether have some concerns. Some refer to incidents where hackers could break in and take away someone’s currency.
But Ethereum started using the blockchain system to break transaction rules and records, ultimately restoring the money to its original owner.
This is termed “hard fork” within the cryptocurrency dealer community. Some agree with this solution but other Ethereum users reject it, electing to use the old rules instead.
Still, the possibility for hacking and theft is a threat to secure transactions using ETH on AlphaBay.
This drawback is often overlooked when considering benefits that the currency can bring on to AlphaBay users.
But it does appear that the dust will settle down soon within the AlphaBay user community and those trading in Ether will find its price increasing in the coming months.