The only method of payment for these illegal purchases is an untraceable peer-to-peer currency known as Bitcoins. After purchasing Bitcoins through an exchange, a user can create an account on Silk Road and start purchasing illegal drugs from individuals around the world and have them delivered to their homes within days.
quote: In trading late Friday, Bitcoins recouped nearly half their losses, bouncing back to 24.34. That's still a massive crash -- around 15 percent in one day. But it shows that the market isn't dead. The U.S. economy survived Black Friday and today sustains a massive amount of wealth. Likewise, perhaps the Bitcoin movement can survive this tough time and find its way. After all -- people are still buying Bitcoins.
quote: 15% decline following a 70% rise, yeah major depression.
quote: Not sure why you're being downrated for this. In the windup to the Great Depression, the DJIA dropped 12.8% on October 28, 1929, followed by another 11.7% on October 29. These things do not happen quickly. It took nearly 3 years (til July 1932) for the DJIA to lose 89%. So comparatively, a 30% drop in a day is a massive, massive drop for what's supposed to be a general index/currency.OTOH, Black Monday, Oct 19, 1987, the DJIA lost 22% in one day. But it bounced right back. So you never know.
quote: you talk (as so many do) as though the only country in the world that matters is the US. This is 5% of the global population. The rest of us can buy and sell without using USD at all.
quote: This whole article reads like a desperate hit-piece..
quote: Got an agenda much?
quote: The bitcoin market has had a slow and steady increase in the number of people/value over a the last couple of months, then there's a sharp increase on one day followed by a slightly smaller decrease two days later, and you call that a "depression"? One day?
quote: This whole article reads like a desperate hit-piece... ticking every single box that newbies ask about on the forums... only to have them debunked. You're deliberately misunderstanding so people who can't be bothered checking things themselves are misled.
quote: So just to clarify:
quote: 1) bitcoin addresses are linked to IP. It's easy to obfuscate IP. Bitcoins can be as untraceable as you want them to be.
quote: 2) the link between bitcoins and drugs is about as serious as the link between cash and drugs. Detractors bring up "drugs" every single time.
quote: 3) we do not need credit-card-based buying of bitcoins because credit-cards/paypal are prone to fraud.
quote: 4) you talk (as so many do) as though the only country in the world that matters is the US. This is 5% of the global population. The rest of us can buy and sell without using USD at all