>>5>>Deepnet is responsible for the creation of the bitcoin currency, which is akin to a universal paypal in the deepnet. Since the only way to pay for things down there (that I am aware of) is by bitcoin - People will actively accept bitcoin instead of cash to trade their wares, whatever it may be.
Wrong: http://en.wikipedia.org/wiki/History_of_Bitcoin
1) Bitcoin creation has no link to the deepweb.
2) You can pay with whatever people will accept on the deepweb. However, Bitcoin is a (mostly) anonymous currency so it's easy to use without being traced.
>>The main reason being that bitcoin is much harder to track - It isn't impossible, but it is extremely difficult. Since each bitcoin has a USD equivalency (as well as other nation currencies), people will measure up and trade out their bitcoin for files, or offline products and services - Usually illegal.
Wrong again. Bitcoin is VERY easy to track. So easy to track that today, a transaction of about ONE HUNDRED FORTY SEVEN MILLION US dollars (about 200K bitcoins) was witnessed by every bitcoin user AND recorded in the bitcoin master chain. What this means is that EVERYONE can know what got traded at anytime and from which to which wallet. What we can't know (without good investigation) is who are the two wallet's physical owners.
People say Bitcoin is untraceable. This is wrong. Bitcoin IS TRACEABLE. The whole transaction history is shared between ALL the Bitcoin users. Bitcoin is said to be untraceable because you can't link a real person to Bitcoin wallet without reasonable proof.
More info about today's transaction: https://blockchain.info/tx/1c12443203a48f42cdf7b1acee5b4b1c1fedc144cb909a3bf5edbffafb0cd204