One of the largest black markets for illegal items and untraceable transactions was launched in 2011. Silk Road used Bitcoin (CRYPTO: BTC) as one of its primary methods of payment, due to the anonymity of users.
Here’s a look at how much Bitcoin has risen in value since Silk Road was shut down.
What Happened: On Oct. 2, 2013, The FBI announced Silk Road had been shut down. The FBI reported that Silk Road had over $1.2 billion in sales volume from Bitcoin over an eighteen-month period.
Silk Road was used for activities like fake passports, fake drivers licenses, illegal drugs, gun sales and hiring hitmen. Over one million customers used Silk Road before it was shut down.
The price of Bitcoin fell on the announcement that Silk Road had been closed, and some even questioned if Bitcoin would continue to rise in value after one of its key use cases was ended.
An attempt to bring back Silk Road was launched in 2013 and also shut down.
Related Link: 13 Fun Facts You May Not Know About Bitcoin
Investing $1,000 In Bitcoin: Investors and crypto enthusiasts who recognized that Silk Road shutting down was likely a short-term negative or an overall positive for Bitcoin have been pleasantly rewarded.
A $1,000 investment in Bitcoin on Oct. 2, 2013 could have purchased 7.6342 Bitcoin based on a price of $130.99.
The $1,000 investment would be worth $319,686.09 today, based on a price of $41,875.52 at the time of writing.
This represents a hypothetical return of 31,868%. On an annual basis, the investment in Bitcoin would have grown an average of 3,749% over the last eight and a half years.
Photo: Courtesy of Richard Patterson on Flickr
