Earlier this week, the bitcoin value took quite a tumble after the FBI bust on Silk Road and its eventual shut down of the online drug marketplace. Well, USA Today reported on Oct. 3, 2013, that bitcoins are starting to rebound and the Silk Road shut down could actually cause their value to rise and take off as signs have already started to show.
As soon as Silk Road was shut down, bitcoins saw their value drop from a high of $141 to $120 almost instantly. Now, reports are that the online drug bust could cause the value of bitcoins to slowly rise and possibly become a globally-accepted currency and be just as valuable as actual paper currency.
"It may well be that the demise of the Silk Road will help remove a bit of tarnish from Bitcoin's public image," observes cybersecurity blogger Brian Krebs.
Before the fall was done, bitcoin saw their value drop all the way down to $110, but they've gone back up to $129 in just the matter of a couple of days.
An unknown programmer known by the pseudonym of Satoshi Nakamoto created bitcoins back in 2009 as the global economy crashed. The first bitcoin was issued with the value of less than a penny, and more would be issued every 10 minutes through a lottery-type process for those that could solve a complex math problem.
Nakamoto's eventual goal was to release an infinite number of bitcoins over the course of 20 years.
As word of bitcoins got around, people started figuring out more ways to win them, use them, spend them, and acquire them.
Bitcoins are indeed legal and they are free from traditional forms of banking fees and the manipulations of banking officials and politicians. Attorney Mercedes Turnstall says they are trying to "make an online equivalent to paper currency that can be run anonymously."