Value of bitcoin took a beating after FBI seized the Silk Road domain and arrested its founder Ross William Ulbricht.
According to data available through Mt.Gox the virtual currency fell to as low as $109.70 today from a high of $140 two days back. The effect is seemingly the direct result of the closure of one of the largest domains known for illicit drug trade.
Bitcoin supporters are of the opinion that the virtual currency offers far more advantages than real currency including lower fraud risk and increased privacy. However, critics are of the opinion that because of the anonymity provided by this decentralized currency, it has become a magnet for drug related transaction, money laundering and other such illegal activities.
Bitcoins are not backed by any government yet, but they have started gaining a foothold in main stream ecommerce as online retailers like Amazon have started accepting payments in form of this virtual currency.
Earlier today FBI arrested Ross Ulbricht on charges of narcotics trafficking conspiracy as well as money laundering and computer hacking conspiracies and seized the Silk Road domain and put up a warning message on the site’s landing page.
