The world’s most popular electronic currency saw a roller coaster effect that one would have predicted when the Silk Road online community was shut down. The coin then recovered its value shortly after the nefarious trading-ground was shut down permanently.
When news of the Silk Road shutdown spread, the coins predictably took a heavy hit, dropping below 90 from the previous day’s high of nearly 140. That morning alone the loss constituted a 20% drop and represented nearly $500 million. But the values found their way back up quickly. The Bitstamp exchange saw the coins drop from $125 to 90, then finding its way back to $115 by the mid day. The Mt. Gox exchange saw a $140 to 109 drop, with a return to $128.
It was not merely the Silk Road that was shut down, but physical arrests were also made. Ross Williams Ulbricht of San Francisco was arrested for running drugs, laundering money, and hacking under the alias Dread Pirate Roberts.
Unnecessarily, the FBI pointed a finger at Bitcoins, noting that the currency was, while not specifically designed for, catered to the black market and nefarious purposes.
“Bitcoins are not illegal in and of themselves and have known legitimate uses,” wrote FBI Special Agent Christopher Tarbell. “However, bitcoins are also known to be used with cybercriminals for money-laundering purposes, given the ease with which they can be used to move money anonymously.”
Regardless of the FBI’s pointed concern, the currency has been a point of interest for investors and consumers alike. By not being part of the well-established broken physical currency system currently being touted by the powers that be, the Bitcoin creates a more trustworthy and comprehensible currency/value trade.
For most, the idea of nefarious actions being cultivated online through bitcoin is no different a struggle than physical money being used constantly for standard nefarious trade.
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