Silk Road was one of the example of Deep Web. It is a website which cannot be accessed from your normal browsers. It can only be accessed only from Tor Web Browser. Silk Road was a place where all sorts of illegal drugs were sold and Bit Coin was used as the method of payment.
No one had any clue as to how this functioned until now. Ross Ulbrich is alleged to be the mastermind behind the Online drug empire and will be charged with various offences.
[via link=”http://www.theverge.com/2013/10/2/4794780/fbi-seizes-underground-drug-market-silk-road-owner-indicted-in-new”]The Verge[/via]
As an aftermath of this crackdown, Bitcoin crashes in value. Silk Road, being one of the main source of liquidity for bitcoins, we should wait on it to see if this incident is just a temporary slowdown in the bitcoin economy or if it is an irreversible setback! Of course, that, for a large extent depends on what this crack-down means for Silk Road itself.
BitCoin crashing would’ve been possible if it’d been 6 months ago. But now, there is almost every service which has an alternative using BitCoins as a mode of accepting and making payments. It is definitely temporary set-back. Also, the amount of money being circulated around Silk Road is small as compared to the total BitCoin economy.