On January 21, US President Donald Trump fulfilled a campaign promise by pardoning Ross Ulbricht, founder of Silk Road. Sentenced to life imprisonment in 2015 for running an online marketplace where more than $200 million worth of transactions were made mostly in bitcoin (BTC), the move sparked a wave of backlash.
“The scum who convicted him are some of the same lunatics who are involved in the modern weapon of government politicization against me,” Trump said in a post on his social media platform, Truth Social.
Trump said the pardon was “total and unconditional” and said he had called Ulbricht’s mother to tell her the news. Ulbricht was released Tuesday night from a federal prison in Arizona, according to Federal Bureau of Prisons records, after Trump’s announcement.
Source:Reuters
Silk Road, the economy that ran on btc
Silk Road was an online platform made famous as one of the first to use cryptocurrencies for illegal transactions. Founded in 2011, Silk Road allowed users to buy and sell illegal goods such as drugs using bitcoin to provide anonymity. For example, during its time in operation, Silk Road saw drug sales reaching hundreds of thousands of dollars monthly.
At the time of his arrest at just 29 years old in 2013 (source US Immigration and Enforcement), Ulbricht was seen as an “early adapter” in the cryptocurrency field. Ulbricht created a veritable underground economy using the cryptocurrency Bitcoin as a medium of exchange
The impact of Donald Trump’s pardon of Ulbricht
Donald Trump’s pardon of Ulbricht has raised many important questions about the ethics behind the decision. Many supporters of drug legalization say that he should not have been punished so harshly and that Donald J Trump’s decision was deserved.
Ross Ulbricht has amassed a veritable fortune in btc
Bitcoin dominance then, why was bitcoin used for illegal transactions?
At the height of the Silk Road (2011-2013), bitcoin was virtually the only cryptocurrency used for online transactions. Having been created in 2009, bitcoin was still in its infancy, but it had quickly become popular among dark web users due to its unique features.
At the time, Bitcoin had almost 100% dominance in the cryptocurrency market, as alternatives such as Litecoin or Ethereum did not exist or were still in their infancy. Silk Road was a key platform for Bitcoin’s early adoption, recording thousands of daily transactions and demonstrating the cryptocurrency’s utility as a digital payment method.
The future of Ross Ulbricht and the virtual currency economy
After his pardon, Ulbricht’s future is generating much speculation. Will he use his freedom to promote the responsible use of cryptocurrencies? Is he likely to become an advocate for reforms in the field? The answers to these questions remain unknown and it will take time to see how this story unfolds.
Globally, Ulbricht’s pardon could open up new opportunities for cryptocurrency acceptance. Emerging companies, such as Abarai, are facilitating the purchase of bitcoin in a user-friendly way by offering an accessible platform. However, it is strictly forbidden to purchase virtual currencies to buy illegal goods or services!!!
Order and regulation of cryptocurrencies
Regulation has become a hot topic in the cryptocurrency community. Regulators, including law enforcement agencies, are focusing their attention on the ways in which transactions are made.
On the one hand, regulations are seen as a necessity to protect users and investors. For example, recent EU regulations aim to reduce the risks associated with fraud and money laundering. On the other hand, there are concerns that excessive regulation could hamper innovation and growth in this booming industry.If you would like to find out more about the new legislation adopted by the European Parliament and the European Commission, you can read the official document by simply clicking here.
Final conclusions
The “Silk Road” underground economy was the first large-scale experiment of an economy that operated with Bitcoin “digital cash”. Users, both consumers and providers of illegal products and services, were making transactions using this cryptocurrency.
As we move towards a future in which cryptocurrencies become increasingly integrated into the global economy. It is essential to focus on the opportunities and challenges they bring. Regardless of personal stance on the pardon, it is clear that Ulbricht’s story will remain an important chapter in the history of cryptocurrencies.