No Big Deal; Bitcoin Price Recovers After Silk Road Bust
The Demise of Silk Road is Good for Bitcoin
This past week, notorious Bitcoin marketplace Silk Road was seized by federal authorities and its operator was arrested for running a massive drug marketplace that has generated $1.2 billion in illicit transaction value.
Immediately the price of Bitcoin dropped 20% and trading volume spiked on fears that this was a curtain call for Bitcoin. The underbelly of Silk Road was always rumored but nobody knew the magnitude of the operation was until the criminal complaint was filed against Ross William Ulbricht.
Link: Read our full coverage of the Silk Road bust
Chart courtesy of BitcoinCharts.com
But in a few days, the price of Bitcoin has nearly fully recovered as the dust has settled on that incredible story.
Ultimately, the demise of Silk Road is good for Bitcoin. It takes away one of the biggest targets and sources of negative stigma for the currency. With so much attention on Bitcoin, no one will be able to replicate the scale of Silk Road again, though some will undoubtedly try to fill the void.
With this marketplace out of the picture, the conversation on Bitcoin can turn to how the digital currency can be used to make markets more efficient and cash more programmable.
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