Original Post:
Comment:
Last week, FBI caught the owner of the biggest online illegal drug market, Silkroad, which used Bitcoin as the only accepted currency and which has conducted more than 1 billion USD worth transactions. This news had a huge , however momentary, impact on Bitcoin market. After the news of shutdown of Silkroad released, the price of Bitcoin has plunged ,and it was traded as low as 90 USD on Bitstamp, one of the largest Bitcoin exchange. After market calmed down and realized that Bitcoin is not designed for illegal drug dealing, the price of Bitcoin bounced back to 122 USD, which is 4 Dollars lower than the price before the crash. Despite the short panic, the shutdown of Silkroad is in long-term a good news for Bitcoin. Silkroad was once the largest Bitcoin online store. Because of that, public sometimes associate Bitcoin with illegal drugs. Shutting down will eventually help Bitcoin gain reputations. Bitcoin, as well as other cypto-currencies, are still in its infant phase, and it has so much potential to be exploited. This technology has a chance replace existing monetary system.
Sources
http://www.cbc.ca/news/technology/silk-road-s-alleged-mastermind-how-the-fbi-caught-him-1.1894067