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Bitcoin-Based Drug Market Silk Road Thriving With $2 Million In Monthly Sales

Sparrowvsrevolution writes "Every day or so of the last six months, Carnegie Mellon computer security professor Nicolas Christin has crawled and scraped Silk Road, the Tor- and Bitcoin-based underground online market for illegal drug sales. Now Christin has released a paper (PDF) on his findings, which show that the site's business is booming: its number of sellers, who offer everything from cocaine to ecstasy, has jumped from around 300 in February to more than 550. Its total sales now add up to around $1.9 million a month. And its operators generate more than $6,000 a day in commissions for themselves, compared with around $2,500 in February. Most surprising, perhaps, is that buyers rate the sellers on the site as relatively trustworthy, despite the fact that no real identities are used. Close to 98% of ratings on the site are positive."

7 of 498 comments (clear)

  1. Re:And in countries where it's legal? by h4rr4r · · Score: 4, Informative

    DUI laws stop people from drinking and driving. It used to be pretty common until it became a serious offense with serious punishments.

    Making drugs illegal does not prevent their use. Nothing will do that, even in nations with a death penalty for drug crimes drugs are still sold.

  2. Re:Why is the feedback system surprising? by h4rr4r · · Score: 4, Informative

    I am betting you have never been part of a typical drug deal.

    Think less what you see on TV and in movies and more mundane real life. People are doing this to make money, killing the buyers does not help with that.

  3. Re:Nice Ad Placement or DEA Honeypot by CanHasDIY · · Score: 5, Informative

    How exactly would your theoretical honeypot work? Only buyers need to provide anything remotely identifiable (e.g., shipping address). Do you think the DEA cares about going after kids who buy $100 worth of LSD?

    Considering that arresting end users is pretty much the DEA's bread-and-butter, I'd say yes, yes they do.

    From above link:

    (2010 - crime - drug manufacturing arrests) Of the 1,638,846 arrests for drug law violations in 2010, 81.9% (1,342,215) were for possession of a controlled substance. Only 18.1% (296,631) were for the sale or manufacture of a drug.

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  4. Re:And in countries where it's legal? by xaxa · · Score: 4, Informative

    I'm too young to know whether the punishment and fines changed, but in the 1980s and 1990s the British government successfully reduced the rate of drink driving by making it socially unacceptable. They ran horrific ads:
    http://www.youtube.com/watch?v=f5ma_Xv7rGM
    http://www.youtube.com/watch?v=eyzTFdCEXWk

    These are more recent:
    http://www.youtube.com/watch?v=qsY_Co-p8Bw
    http://www.youtube.com/watch?v=xtJqw--DGl8

    The stats: http://www.drinkdriving.org/drink_driving_statistics_uk.php

    And the penalties; in case you want to compare: http://www.drinkdrivingfacts.com/drinkdriving/drink_driving_facts.aspx

  5. Re:And in countries where it's legal? by GameboyRMH · · Score: 4, Informative

    Most addictive naturally-occuring drug, of all drugs it's #3 IIRC behind a couple of anti-psychotics.

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  6. Re:And in countries where it's legal? by DeadCatX2 · · Score: 4, Informative

    It's pretty easy to find plenty of evidence that h4rr4r's post is spot on. Google "Portugal decriminalization".

    https://www.google.com/search?q=portugal+decriminalization

    h4rr4r speaks truth, whether or not you want to hear it.

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  7. Re:And in countries where it's legal? by Hatta · · Score: 4, Informative

    Ecstasy might not have been invented then

    MDMA was actually invented by Merck in 1912, but didn't find its way into recreational use until the 80s.

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