In 2012, Bitcoin was still a niche phenomenon, known mainly by tech enthusiasts and libertarians. At that time, 10,000 BTC was still worth a handful of pizzas, but the potential of this digital currency was attracting more and more attention. Here is an exciting story that took place between 2012 and 2016: the rise of the Silk Road and the key role of Bitcoin.
The Rise and Fall of the Silk Road
In 2012, a site called Silk Road emerged on the dark web, offering a decentralized online marketplace where one could buy all sorts of goods, both legal and illegal. This marketplace used Bitcoin exclusively to ensure the anonymity of transactions.
The mastermind behind the market, Ross Ulbricht, known by the pseudonym “Dread Pirate Roberts,” built a veritable underground economy, with Bitcoin playing a central role. At its peak, Silk Road accounted for millions of dollars in weekly transactions, propelling Bitcoin’s popularity and dramatically increasing its value.
The Domino Effect
Bitcoin’s growth during these years was exponential. In 2013, its value went from less than $20 to over $1,000 in December. This spike attracted the attention of governments and regulators, who began investigating the use of Bitcoin in criminal activities.
In October 2013, the FBI arrested Ross Ulbricht and shut down Silk Road. However, this did not mark the end of Bitcoin. On the contrary, the media coverage of the case propelled Bitcoin to the global spotlight, attracting investors, developers, and startups to the cryptocurrency ecosystem.
The period 2014-2016
During this period, Bitcoin went through a consolidation phase. Major events like the Mt. Gox crash in 2014, where hundreds of thousands of BTC were stolen, shook confidence in cryptocurrencies. However, Bitcoin survived this crisis, gaining strength with technological improvements like the Lightning Network and increased adoption by merchants.
By the end of 2016, Bitcoin was recognized as a serious asset, poised to enter a new era of growth and global adoption.
