If you had invested $1,000 in Bitcoin when Silk Road was closed, here’s how much you would have today

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June 29, 2023 4:28 p.m. | 2 minute read

One of the most extensive underground markets for illicit goods and untraceable transactions was launched in 2011. Silk Road used Bitcoin (CRYPTO: BTC) as one of its primary payment methods, due to anonymity users.

Here’s a look at how much Bitcoin has increased in value since Silk Road shut down.

What happened: On October 2, 2013, the FBI announced that Silk Road had been shut down. During its operation, Silk Road generated over $1.2 billion in sales volume from Bitcoin transactions in the 18-month period prior to its closure.

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Silk Road was used for activities that included fake passports, fake driver’s licenses, illegal drugs, gun sales and the hiring of hitmen. Over a million customers used Silk Road before it closed. Legal goods such as artworks, books, clothes and jewelry have also been sold on the platform.

Bitcoin’s price plummeted on news of Silk Road’s closure, and some even wondered if Bitcoin would continue to rise in value after one of its main use cases ended.

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In 2013, an effort to revive Silk Road was started but was later shut down.

Related link: How to buy bitcoins

Invest $1,000 in Bitcoin: Investors and cryptocurrency enthusiasts who interpreted the Silk Road shutdown as a temporary setback or even a long-term benefit for Bitcoin have since reaped significant rewards.

A $1,000 investment in Bitcoin on October 2, 2013 could have purchased 7.6342 Bitcoins based on a price of $130.99.

The $1,000 investment would be worth $233,350.01 today based on a Bitcoin price of $30,566.40 at the time of writing.

This represents a return of 23,235.0% for investors who were able to recognize the potential reversal of the event.

For comparison, a $1,000 investment in the SPDR S&P 500 ETF Trust (NYSE: SPY) would be worth $3,091 today. This represents a yield of 209%.

Although there is no guarantee that the leading cryptocurrency will outperform the market in the future, it does show that Bitcoin has been written off for death several times and has been able to increase in value over time.

Read Next: US Government Transfers Over $1 Billion in Bitcoin, with Some Going to This Major Exchange

Photo: Shutterstock

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