We are not surprised: FED does not tolerate any competition to its Ponzi scheme with FIAT money. As with all the games with Gold your faith in any FIAT alternative will be manipulated all the time. The key and crucial difference with Gold - you can stay Off The Grid and it is the Real Money recognised by everybody for thousand of years. The fatal flaw of BitCoin as the alternative to The System is that it is part of The Grid which is totally controlled by NSA. Realisation of this crucial factor will bring new buyers into the Gold and Silver markets.
Earlier today, one of the most popular websites that use and promote the use of BitCoin, Silk Road, was shut down by the US government. As Reuters reports, U.S. law enforcement authorities raided an Internet site that served as a marketplace for illegal drugs, including heroin and cocaine, and arrested its owner, the Federal Bureau of Investigation said on Wednesday. The FBI arrested Ross William Ulbricht, known as "Dread Pirate Roberts," in San Francisco on Tuesday, according to court filings. Federal prosecutors charged Ulbricht with one count each of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy, according to a court filing. Anyone visiting the site would be greeted with the following "game over" screen.
The immediate result has been a quick and brutal dump in the USD-equivalent value of the BitCoin currency itself as can be seen on the chart below:
And a chart showing the move in proportion:
That the US government would crack down on BitCoin and all affiliated services should not be surprising and is happening just as we warned it would back in March when we first charted the initial ramp of BitCoin. This move was especially inevitable considering none other than the ECB "warned" in November of 2012 against virtual currency Ponzi schemes (though it has no problem with fiat equivalents).
So is this the end of the crypto currency? It is unclear, but judging by the sudden lack ofpublicly available BitCoin pricing data, ostensibly to prevent a chaotic selloff or merely a result of the onslaught in trading volume, the end may be nigh for this monetary alternative."