On January 21, the President of the United States, Donald Trump, fulfilled a campaign promise, the pardon of Ross Ulbricht, the founder of Silk Road . Sentenced to life imprisonment in 2015 for the administration of an online market where transactions worth over 200 million majority dollars (BTC) were performed, this action has sparked a wave of reactions.
"The garbage who condemned him are some of the same lunatics who are involved in the modern government politicization weapon against me," Trump said in a social media platform post.
Trump said the pardon was " total and unconditional " and said he called Ulbricht's mother to give her the news. Ulbricht was released on Tuesday evening from a federal prison in Arizona, according to the Federal Prisons Bureau, after the announcement made by Trump.
Source: Reuters
Silk Road, the economy that works with BTC
Silk Road was an online platform that has become famous, being among the first to use cryptocurrencies for illegal transactions. Founded in 2011, Silk Road allowed users to buy and sell illegal goods like drugs, using Bitcoin to provide anonymity. For example, during the operational period, Silk Road saw drug sales that reached hundreds of thousands of dollars monthly.
At the time of his arrest at only 29 years old in 2013 ( US Immigration and Enforcement ) , Ulbricht was seen as an "Early Adapter" in the field of cryptocurrencies. Ulbricht has created a true underground economy using as a means of cryptocurrency bitcoin
The impact of Ulbricht's pardon by Donald Trump
The pardon of Ulbricht by Donald Trump has raised many important questions about the ethics behind the decision. Many supporters of drug legalization say that it should not be punished so harshly and that Donald J Trump's decision was deserved.
Ross Ulbricht has accumulated a real fortune in BTC
The dominant bitcoin then, why was Bitcoin used for illegal transactions?
During the peak of Silk Road (2011-2013), Bitcoin was practically the only cryptocurrency used for online transactions. Being created in 2009, Bitcoin was still in its beginning, but had quickly become popular among Dark Web users due to its unique features.
At that time, Bitcoin had a dominance of almost 100% on the cryptocurrency market, as alternatives such as Litecoin or Ethereum did not exist or were still in early stages. Silk Road was an essential platform for the early adoption of Bitcoin, recording thousands of daily transactions and demonstrating the utility of cryptocurrency as a digital payment method.
The future of Ross Ulbricht and the economy with virtual currencies
After his pardon, Ulbricht's future generates a lot of speculation. Will he use this freedom to promote the responsible use of cryptocurrencies? Is it possible to become a lawyer of reforms in the field? The answers to these questions remain unknown and will take us time to see how this story will take place.
Globally, Ulbricht's pardon could open new opportunities for accepting cryptocurrencies. Emerging companies, such as Abarai , facilitate the purchase of bitcoin in a friendly way to users, offering an accessible platform. However, the purchase of virtual currencies is strictly forbidden for the purchase of illegal goods or services !!
The order and regulation of cryptocurrencies
The regulations in this field have become a hot theme in the cryptocurrency community. The regulatory authorities, including the law enforcement agencies, focus their attention on the ways in which the transactions are made.
On the one hand, regulations are seen as a necessity to protect users and investors. For example, recent regulations in the European Union are aimed at reducing risks associated with fraud and money laundering. On the other hand, there are concerns that excessive regulation could embarrass the innovation and development of this expansion industry. If you want to know more about the new legislation adopted by the European Parliament and the European Commission you can read the official document with a simple click here.
Final conclusions
The underground economy "Silk Road" was the first large-scale experiment of an economy that worked with the "digital cash". Users, both consumers and suppliers of illegal products and services, made transactions using this cryptocurrency.
As we go to a future in which cryptocurrencies become more and more integrated in the global economy. It is essential to focus on the opportunities and challenges they bring. Regardless of the personal position on pardon, it is clear that the story of Ulbricht will remain an important chapter in the history of cryptocurrencies.
