FBI’s shutdown of illicit drug website Silk Road will reveal Bitcoin’s resilience

Sunday 06 October 2013

This article by John Greenwood of The Financial Post posits that the shutdown of Silk Road is no bad thing for bitcoin and it's ascent into mainstream awareness and adoption.

Aside from the lurid details — more on those later — the case is perhaps most notable because Silk Road was among the world’s biggest players in the virtual currency known as Bitcoin, one of the few major retailers from which you could actually buy stuff.

News of Mr. Ulbricht’s arrest and the shuttering of his business sent a shockwave through the Bitcoin community worldwide, briefly pushing the value of the currency down as much as 30% on Wednesday as panicked holders worried about the possible consequences for the crypto currency rushed for the exits, of which there aren’t that many due at least in part to recent efforts by authorities to clamp down on potential illegal activity.

Still, by the next day it had recovered much of the lost ground, according to Virtex, a Calgary-based Bitcoin exchange. By the end of Thursday it was trading at $119, down just $7 from from where it was before charges against Mr. Ulbricht were announced.

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