After FBI bust, Bitcoin values plummet

Bitcoin

The US Federal Bureau of Investigation (FBI) shut down a website yesterday and arrested someone today related to Bitcoin:

October 3, 2013

Visitors trying to access the Silk Road are now presented with a seizure notice.

The value of bitcoins has dropped after the closure of the clandestine Silk Road online marketplace.

The FBI seized bitcoins worth approximately $3.6m (£2.2m) on Tuesday.

The price of a bitcoin, a virtual currency for use online, fell steeply after the arrest of suspected website administrator Ross Ulbricht.

Investor confidence may have been shaken by the association of bitcoins with illegal activity, according to a security expert.

“When there’s a big bust, that’s going to knock people’s confidence in investing,” said Rik Ferguson, a senior researcher at security company Trend Micro. http://www.bbc.co.uk/news/technology-24381847

October 3, 2013

Wednesday’s arrest of alleged Silk Road founder Ross William Ulbricht appears to be having a negative effect on the Bitcoin market. The value of the virtual currency began to plummet in the minutes after the FBI announced that it had shut down the online marketplace where it said anonymous users bought and sold illegal drugs and engaged in other criminal activity funded by bitcoins.

One immediate effect of Silk Road’s closure, according to the nonprofit Digital Citizens Alliance, is that some users’ bitcoins have simply vanished. That includes about $300 that DCA had purchased for use in its own investigations of the industry.

“We just lost them; they’re gone,” Adam Benson, the group’s communications director, said.

DCA has been tracking Silk Road activities for months, and the marketplace was featured heavily in a paper the group published in July on Bitcoin’s impact on Internet safety. http://www.washingtonpost.com/blogs/the-switch/wp/2013/10/02/losing-its-reputation-for-secrecy-could-be-good-for-bitcoin/

3 October 2013…

Anyone who imagines that Bitcoin is somehow a refuge from government surveillance has to get a chill reading that in a space of about five and a half months there were “146,946 unique buyer accounts and 3,877 unique seller accounts.” Identify some of those seller accounts and guess what — you’re well on your way to identifying the buyer accounts…

Bitcoin invites scrutiny from authorities. It lets third parties gather public data to trace the parties you do business with. It is subject to an unreliable market that doesn’t seem to set consistent or reliable values. The only point left in its defense might be that you don’t like central banks or national currency. If so, for those left holding a bunch of Bitcoins, this can turn out to be a very expensive protest. http://go.bloomberg.com/market-now/2013/10/02/if-this-isnt-the-end-of-bitcoin-what-is/

Here is some of what Bitcoin’s website says about it (viewed today):

Bitcoin is an innovative payment network and a new kind of money.

Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.

But, its value is now dropping because of an FBI raid.

While I am not saying that the FBI did not properly do its job, the recent history of the USA suggests that it is against most financial privacy and alternatives to trade in other than the USA dollar.

FWIW, I have never had or traded in Bitcoins or other alternatives like that. But I will mention that if because of the plummeting value of Bitcoins that some may conclude that the USA dollar is truly safe, that would be a major error.

The USA continues to take steps to devalue its currency and ultimately the USA dollar will be worthless. Notice also something I wrote earlier in one of my books:

It seems since many are now questioning the role of the U.S. dollar as the world’s reserve currency, more are looking into other currencies as well as gold. Gold will set records in U.S. dollar terms. When the U.S. dollar totally collapses people all around the world will consider that even if the Euro (or something similar) is strong, having a more gold-backed currency would be safer. The collapse of the U.S.A. dollar will shake a lot of the world’s confidence in non-gold backed currencies.

Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe (and will happen, to a degree, before that King arises).

The financial policies of the Obama Administration (which are a massive acceleration of the previous policies of the Bush Administration) are heading the world into the direction that something other than the U.S. dollar will be valued as its reserve currency. (Thiel B. Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term. Nazarene Books, 2013, pp. 132-133)

The time is coming that the USA dollar will be worthless. And yes, the Bible tells that for a time gold will be worthless, but that does not happen until years after the demise of the US dollar. But placing too much confidence in gold, currencies, or alternatives like Bitcoin will not truly save anyone (cf. 1 Peter 1:7). Yet, true repentance and turning to the Jesus of the Bible can.

Although the USA is not likely to repent to prevent this nationally, personally you can repent as well as physically take steps before the dollar-based economic systems collapses.

Some articles of possibly related interest may include:

Jesus: The Son of God and Saviour Who was Jesus? Why did He come to earth? What message did He bring? Is there evidence outside the Bible that He existed? Here is a YouTube sermon titled Jesus: Son of God and Saviour.
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
There is a Place of Safety for the Philadelphians. Why it May Be Petra This article discusses a biblical ‘place of safety’ and includes quotes from the Bible and Herbert W. Armstrong on this subject–thus, there is a biblically supported alternative to the rapture theory. There is also a video on the subject: Might Petra be the Place of Safety? Here is something related in the Spanish language: Hay un lugar de seguridad para los Filadelfinos. ¿Puede ser Petra?
Just What Do You Mean Conversion? Many think that they are converted Christians. But are they? Would you like to know more about conversion. Herbert W. Armstrong wrote this as a booklet on this important subject.
False Conversion Have you really been converted? Herbert W. Armstrong wrote this article on this important subject.
All About Water Baptism What is baptism? Would you like to know more about it. Herbert W. Armstrong wrote this as a booklet on this important subject. As far as early history, see also Baptism and the Early Church.
God’s Grace is For All Is being Jewish a hinderance to salvation? What about not being a descendant of Israel? What does the Bible really teach?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is a link to a video titled: Can You Prove that the Beast to Come is European?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? What MUST happen BEFORE the Great Tribulation?
Physical Preparation Scriptures for Christians. We all know the Bible prophecies famines. Should we do something?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2021 or 20xx?
When Will the Great Tribulation Begin? 2013, 2014, or 2015? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? See also the video Can the Great Tribulation Begin in 2013?
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.