June 29, 2023 4:28 PM | 2 min read
One of the most extensive underground marketplaces for illicit goods 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. During its operation, Silk Road generated over $1.2 billion in sales volume from Bitcoin transactions in the 18-month period leading up to its closure.
Silk Road was used for activities that included fake passports, fake driver’s licenses, illegal drugs, gun sales and hiring hitmen. Over one million customers used Silk Road before it was shut down. Legal goods like art, books, apparel and jewelry were also sold on the platform.
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.
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In 2013, an effort to revive Silk Road was initiated but was subsequently shut down.
Related Link: How To Buy Bitcoin
Investing $1,000 in Bitcoin: Investors and cryptocurrency enthusiasts who interpreted the closure of Silk Road as a temporary setback or even a long-term positive for Bitcoin have since reaped significant rewards.
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 $233,350.01 today based on a price of $30,566.40 for Bitcoin at the time of writing.
This represents a return of 23,235.0% for investors who were able to recognize the potential turnaround from the event.
For comparison, a $1,000 investment in the SPDR S&P 500 ETF Trust (NYSE:SPY) would be worth $3,091 today. This represents a return of 209%.
While there is no guarantee that the leading cryptocurrency will outperform the market in the future, it shows that Bitcoin has been written off for dead many times and has been able to increase value over time.
Read Next: US Government Transfers Over $1B In Bitcoin, Some Going To This Major Exchange
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