Bitcoins in the Black Market: Criminal Currency in the Twenty-First Century

The rising price of the cryptocurrency Bitcoin has resulted in a surge in curiosity to understand the drivers of Bitcoin price. While Bitcoin prices are correlated with many measures, such as gold price and total number of Bitcoins in circulation, Bitcoin still remains a partially speculative asset. Cybercriminals favor cryptocurrencies as a form of payment. Research has shown relationships between criminal activity and Bitcoin interest, and separately Bitcoin interest and Bitcoin price. However, no previous work has shown the direct relationship between criminal activity and Bitcoin price. This research examines the relationship between Bitcoin price and criminal activity and whether the inclusion of criminal activity creates a more predictive model of Bitcoin price.