Markets are volatile under normal circumstances. When they’re in their infant stage, rely 100% on virtual concepts without real world backing, and have no recognized value by world governments, the situation is a bubble waiting to happen. With Silk Road, Bitcoin’s bubble was popped at last a little. Here’s why…
Silk Road, the online drug bazaar that has eluded authorities and been ingrained in the bitcoin narrative for years, was shut down yesterday. Ross Ulbricht was named in the court documents outlining Silk Road’s activities, as were a number of key data points that offer insights into the impact the world’s most infamous retail website has had on bitcoin.
Ulbricht was caught as a result of human error and excessive risks related to physical delivery of false identification being delivered to his home address in San Francisco from Canada. After tracking the package, authorities found their way to Ulbricht and were able to compile a significant case against him (more details in the official complaint embedded below). Notably, it does not appear he was tracked as the result of any underlying flaws with tor, used for anonymous web browsing, or bitcoin, the only currency accepted on Silk Road.