Bitcoin Crashes After U.S. Government Seizes Main Internet Exchange.

Bitcoin, the virtual currency being touted as a possible future alternative to the dollar, has plunged in value after it’s main internet exchange, known as “Silk Road”, was shut down by federal authorities.  Silk Road exclusively utilized Bitcoin for transactions, and had been an extremely popular medium for the buying and selling of illegal drugs, alongside other presumably illicit activites. As the FBI complaint via BBC reports:

“From in or about January 2011, up to and including September 2013, the Silk Road Hidden Website… has served as an online marketplace where illegal drugs and other illicit goods and services have been regularly bought and sold by the site’s users,” court papers filed in the Southern District of New York state.

“The complainant further alleges, in part, that the Silk Road Hidden Website is designed to facilitate the illicit commerce hosted on the site by providing anonymity to its users, by operating on what is known as The Onion Router or Tor network… and by requiring all transactions to be paid in bitcoins, an electronic currency designed to be as anonymous as cash.”

The result has been a gigantic dump in Bitcoin, falling to new lows against the USD.

Is this the end of Bitcoin? Probably not. I think it will stick around as long as people have a use for it. Someone else will start another major web exchange, probably overseas this time.


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One Comment on “Bitcoin Crashes After U.S. Government Seizes Main Internet Exchange.”

  1. shea October 2, 2013 at 8:11 pm #

    “This is supposed to be some invisible black market bazaar. We made it visible,” says an FBI spokesperson, who asked not to be named. “When you interviewed [Ulbricht], he said he would never be arrested. But no one is beyond the reach of the FBI. We will find you.”

    Creeeeeepy This government is out of control

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