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Drug Site Silk Road Says It Will Survive Bitcoin's Volatility

Posted by Soulskill on from the currencies-propped-up-by-druggies dept.

Sparrowvsrevolution writes "Bitcoin's recent spike and then collapse in value has convinced many that it's too unstable to use as a practical currency. But not the founder of Silk Road, the black market drug site that exclusively accepts Bitcoin in exchange for heroin, cocaine and practically every other drug imaginable. Silk Road's creator, who calls himself the Dread Pirate Roberts, broke his usual media silence to issue a short statement that Silk Road will survive Bitcoin's bubble and bust. The market's prices are generally pegged to the dollar, with prices in Bitcoin fluctuating to account for movements in the exchange rate. And Roberts explained that vendors on the site have the option to also hedge the Bitcoins that buyers place in escrow for their products, so that they can't lose money due to Bitcoin's volatility while the drugs are in the mail. As a result, only about 1,000 of the site's more than 11,000 product listings were taken down during the recent crash."

12 of 293 comments (clear)

  1. Speculation by Errol+backfiring · · Score: 5, Insightful

    Why blame the victim? The rise and fall in price (PLEASE, not "value". There's a difference, you know) is due to speculation, not to the currency itself. Dollars, euros and other fiat currency are just as vulnerable.

    --
    Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
    1. Re:Speculation by Greyfox · · Score: 4, Insightful

      And Gold. Fox news was the agent of a massive pump-up in the price of gold over the last couple years, looks like that bubble is now bursting too.

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    2. Re:Speculation by Anonymous Coward · · Score: 4, Insightful

      Any time I listen to Glenn Beck or Rush Limbaugh or Hannity, there are constant commercials for people selling gold. I think it speak a lot towards the type of people that listen to these jacknuts that the advertisers have identified them as a target demographic. Those talk show entertainers should have their asses sued for ruining the life savings of many, many gullible old people.

    3. Re:Speculation by sribe · · Score: 5, Insightful

      Dollars, euros and other fiat currency are just as vulnerable.

      Bullshit! Currencies backed by the economic activity of entire 1st-world nations are nowhere near as vulnerable.

    4. Re:Speculation by tehcyder · · Score: 5, Insightful

      There is a direct correlation between having insane rightwing views and believing that a return to the Gold Standard will usher in a new kingdom of heaven on Earth.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    5. Re:Speculation by O('_')O_Bush · · Score: 4, Insightful

      That is mostly bullshit. Gold has some intrinsic value, but the vast majority of gold's value is inflated by speculators and wealth storage (bullion, futures, jewelry). What you are claiming is not dissimilar to saying the greenback with never hyperinflate because of the intrinsic value of the paper it is printed on.

      Looking at historical gold prices, I'd estimate that if gold was priced on intrinsic value alone, cost per oz would be less than a tenth of what it is.

      --
      while(1) attack(People.Sandy);
    6. Re:Speculation by Archangel+Michael · · Score: 4, Insightful

      "Providing" basic needs, means they don't have to provide for themselves. And you think that is humane, but it is the worst kind of tyranny, dependance. There is a reason why National Parks posts signs saying "don't feed the bears". Why we recognize this with bears and not humans is baffling.

      Taking from productive members of society, by threat of force, to provide for people unwilling to provide for themselves, is the tyranny I speak of . Do you think that is okay?

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
  2. Re:I sell actual things in Bitcoin by Wookie+Monster · · Score: 5, Insightful

    So, you like BTC being unregulated, but you want governments to make certain activities illegal. How is this not regulated?

  3. Re:I sell actual things in Bitcoin by mooingyak · · Score: 4, Insightful

    I blogged about it the other day, in how I wish governments would just make BTC to fiat currency transactions illegal. It would be a great step in reducing volatility and decoupling BTC from the regulated markets.

    That sounds to me like a sure way to kill bitcoins. If I accept bitcoins as payment, and no one who sells something else I want to buy accepts them, then the bitcoin has no value for me.

    --
    William of Ockham had no beard. The most likely explanation is that it was chewed off by squirrels every morning.
  4. Re:I sell actual things in Bitcoin by Registered+Coward+v2 · · Score: 4, Insightful

    I sell physical goods and accept Bitcoin as a payment method. The volatility doesn't bug me at all. it's only a tiny percentage of overall sales...

    That is because your risk is very limited. If you had a significant amount of your sales in Bitcoin you'd probably think differently; since your risk exposure would be much higher.

    If a seller is concerned with volatility, they should consider not selling their received BTC for fiat currency.

    No, they should immediately convert it so they assume no volatility risk.

    It's the number of "we accept bitcoin" sites that accept currency and then immediately convert it to fiat that is one reason for the downward pressure.

    That's called market forces.

    --
    I'm a consultant - I convert gibberish into cash-flow.
  5. Shhh! by Bob9113 · · Score: 4, Insightful

    Silk Road's creator, who calls himself the Dread Pirate Roberts, broke his usual media silence

    Yegads, man! You're going to scare the horses. Your usual media silence is a wise practice. The general public doesn't know you exist, and doesn't know you use Bitcoins. Those are good things. The first rule of drug dealing is you do not talk about drug dealing. Just 'cuz I don't use your service doesn't mean I want to see more scrutiny aimed at you, or at Bitcoin.

    --
    Stop-Prism.org: Opt Out of Surveillance
  6. Completely overblown by slashmydots · · Score: 4, Insightful

    Besides one obviously fake spike and drop, the value hasn't changed much more than 20% in either direction lately that I've seen. Yeah, the dollar differences are insanely high compared to the last 2 years but from a percentage standpoint, the value hasn't changed much. Overall, it's still up significantly from 3 months ago.