Bitcoin buzz has been reaching epic proportions lately, and with good reason.
Thus far, April has seen a peak in Bitcoin’s virtual currency valuation followed by a sudden and spectacular collapse. One subject that few people touch on is the volume of real-world (ie. not speculative) transactions that are legally problematic, and the impact those transactions will have on Bitcoin’s future.
Buying drugs, weapons, or other contraband are all possible with Bitcoin, and many of these transactions occur on the infamous marketplace Silk Road. This enormous drug marketplace is a prime mover in the Bitcoin economy. In fact, 20% of Bitcoin exchanges to US dollars are from Silk Road vendors.
This realization made the team at WhoIsHostingThis.com speculate on the future viability of Bitcoin if the Silk Road marketplace is shut down.