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The Economics of Drug Sales On the Dark Web

HughPickens.com writes: Allison Schrager has an interesting article about how marketplaces for contraband drugs have only existed for about four years on the dark web, but they've made inroads fast. About 10%-15% of drug users in the U.K., U.S., and Australia [are believed to have] bought drugs off the net. According to Schrager, these marketplaces look remarkably similar to normal online marketplaces. Users leave detailed reviews on the quality of a vendor's product, speed of delivery, and how secure the shipping method was. There's information on where vendors are located and where they'll ship to. Some even post their refund and exchange policies. Purchasing meth from a dealer in the Netherlands feels as familiar and mundane as buying sheets from Macy's. The dark web makes transactions safer.

All the same, there are risks that Macy's customers don't run. Because there's no legal protection for illegal purchases, the bitcoin payments sit in escrow until the goods have been delivered and both parties are satisfied. That exposes the seller to exchange-rate risk, because bitcoin is an extremely volatile currency. And there is one other big source of risk: the point where the virtual world of the dark web and the world of physical reality intersect. In other words, getting drugs delivered. Certain drugs like MDMA and LSD may move mostly online. And the web may become the preferred source for affluent users and small-time pot dealers.

3 of 53 comments (clear)

  1. "about 10-15% of..." by Anonymous Coward · · Score: 2, Insightful

    Is this like studies which confirm that 110% of male teens have viewed harcore BDSM since they were eight, taken at least five class A drugs, and slept with nineteen women between the ages of 15 and 50 (at least half of whom were passed out)?

    If a stranger asks you in person, "Have you done any of the following illegal things, and how?" then how you answer it depends on a lot more than your desire to be honest. And if it's an online survey, well, just fuck off.

  2. Re:The War On Drugs is a War On Sick People by Procrasti · · Score: 3, Insightful

    How about we just lock up thieves?

    I know it sounds a bit crazy, but not all thieves are drugs users and not all drug users are thieves. Seems like we should concentrate on the actual crime and not your preconceptions and prejudices.

    I mean, we could lock up niggers too if they're gonna be black, because we know they all eventually steal from good white folks... makes about as much sense as your argument.

  3. Re:Pot? unlikely by OutOnARock · · Score: 3, Insightful

    no, they can't take the lists and lock everybody up

    best they could do is try and use the list for probably cause to get a search warrant, which would be a stretch

    everyone forgets that Prohibition of Alcohol didn't end because the Feds decided it was a good idea

    Prohibition of Alcohol ended because enough States said "Fuck you, its legal here, if you want to enforce Fed law, do it yourself"

    The Feds don't have the resources to do that, alcohol's status changes at the Fed level.

    That is what will happen with marijuana in the U.S.