Price of Bitcoins nosedives after Silk Road bust

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The semi-anonymous e-currency Bitcoin is falling rapidly after the bust of the underground drug market, Silk Road. Silk Road was by far the largest source of Bitcoin transactions anywhere in the world, conducting in excess of $1 billion worth of business via the currency. Federal agents today shut the site down and arrested the man they say is behind it.

The news of the bust sent shock waves through the Bitcoin currency, and sent the price tumbling from $130 to an average of $85 in less than three hours. At the time of writing, the price has gone back up to $108. In addition to the fears about Bitcoins future, the closure of Silk Road meant that 26,000 Bitcoins (worth around $3 million) were seized with it. Users on the Silk Road forums (which continues to operate) expressed their dismay at the freezing, saying “I am DEVASTATED That SR is permanently down!  But what happens to the amount of BitCoins I had in my wallet?!?! Where the **** did they go?!?

Source – The Verge

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