This question have its answer itself,
everyone who holds bitcoins and want to buy illigal things buys with bitcoin.
Reason is simple no one can trace you.
I once tried to buy in dark web but actually i was ripped over there.
So yeah think before you buy almost 99% asre sacms
Don't kid yourself. Bitcoin is pseudo-anonymous.
Anybody can see which unspent outputs are used as inputs by a new transaction, and which address got funded. By seeing which unspent outputs are combined in a transaction, addresses can be coupled to wallets.
Since a lot of exchanges started to use KYC regulations, and everybody and their mother are logging ip's, allmost all your exchange activity's can be traced back to you.
To make things worse, as soon as you buy a physical good using BTC, you have to enter a valid address, pointing directly at yourself.
Even mixers don't provide 100% safety, since you don't know who's operating them, and by the ever increasing field of data mining and blockchain analysis, to some point, it's even possible to join together mixer's inputs and outputs (or so it seems... I've never done this myself, but i've read that theoretically, it's possible).
As for the OP's question: i've bought some marihuana seeds and a knife using BTC... It's not really illegal in my country (they were both purchased on legal webshops, using my real name and address), but those are the most grey-area things i've ever bought with BTC
I agree, bitcoin can be traced by IP, but I am not sure if people use anonymity network, whether he/she still can be traced?