Will the FBI shut down Bitcoin in addition to closing the doors of The Silk Road? That’s what every Bitcoin user, investor, and inquirer wants to know today. What will happen to those tiny coins that the Internet loves so much? Well, it all depends on how you look at it.
If we look at investment trends then, yes, Bitcoin is going down. If we look at what the FBI may see in the currency, it might not be so cut and dry. So, let’s break it down (just for fun).
The Bitcoin Dip
If you’ve been around the investment world (or investors), you are probably aware that negative news means a sure dip in value. That’s just the way it goes. Were a lot of Bitcoin investors worried yesterday when word about The Silk Road got around? You bet. Did the value of the Bicoin dip? Sure did. But, does that mean that these little coins will no longer be valuable?
Maybe not. Bitcoin has to be a viable threat to the government in order for the FBI to shut it down. Let’s go back to The Silk Road shutdown. From FBI documents, we know that the number of transactions moving through The Silk Road (all Bitcoin, of course) were around 2000+ transactions daily. That’s a lot of Bitcoin dough. That number may even be higher, it’s hard to say. What can be concluded here is that most of the Bitcoin community was also The Silk Road community – so, yeah, a shutdown might happen, but the FBI might not be behind it.
No Players, No Game
If there aren’t any Bitcoin transactions happening, there’s no more Bitcoin. It’s really that simple. Does the FBI need to shut it down, technically? Not really. Why? Because the bureau already took the wind out of Bitcoin’s value by shutting down The Silk Road. See the problem here?
What will happen to the piles and piles of Bitcoins gathered up by The Silk Road (or one Mr. Ulbricht)? Those coins are probably rendered worthless (not that he will be able to spend them in jail). If you have stock in Bitcoin, you may want to sell. I know, I know, you’re supposed to buy when it’s low, if that thing your purchasing has a chance of bouncing back. But, in this case, that chance is slim to none.
Bitcoin Doomed: Some Hope?
Maybe. Companies like WordPress have adopted Bitcoin. That means that the currency may not be completely dead. Still, it’s hard to ignore the fact that most Bitcoin users are linked to The Silk Road users – and that means bye-bye Bitcoin.
What are your thoughts? Want to challenge this idea? Got a better thought? Have you invested in Bitcoins (I really want to hear this one!)? Let me know below!