Senator Charles Schumer Pushes to Shut Down Online Drug Marketplace

[dust]

We can now expect another BTC rally as new people discover Bitcoin from this article.

However - we can expect the BIG ONE in two years when the yield of a block drops from 50 to 25 BTC at block 210,000

oh man...

block #210,001 is going to be EPIC.

The market should price in the block reward change well before it actually happens.

[marcus_of_augustus]

Good luck, Fhtagn!  Here's a strange coincidence - I just happened to begin reading some Lovecraft when you made this post.  I cannot hazard a guess at the fortune of this.

Reading a book and spamming multiple forum threads simultaneously, are you some kind of AI bot?

[n0m4d]

Except that's not how legislatures work. Other people in the Senate have to take him seriously for him to get anything done. And they don't.

Try selling that to the three percenters.

In a perfect world, I'd agree.

[Nefario]

I heard about this on irc last night.

I wasn't quite sure what to make of it, felt a little worried, and then I checked Mt.Gox

There was a big drop and then a swift recovery at this news, and we've been fairly steady since. What this means is, that the market (the wisest among us) was spooked for a short time, and then after a little analysis dissmissed it. It's as free a market as there is, and it has spoken.

I also see that this is bitcoin, and the problem is with SR. Sure the site is using bitcoin, but it could just as easily have used USD notes. Are the senators going to look to ban them?

They(the senators) have just given millions of dollars worth of publicity to advertise SR, bitcoin, and that particular business model. Young people(below 40) will see this news and think cool, because it's normal to them. I don't smoke never mind do drugs but is there really anyone here who doesn't have friends in real life that do(illegal drugs, including MJ)?

At least 1/2 of my friends back west do, and I'm not a stoner or party person.

Logistically the state is going to lose, they do not have the resources to ban something that requires so much work to catch a single person, never mind the millions that will use it. When more sites like SR (and it's a when not if) pop up (thanks for giving more people the idea), the numbers will grow to such an extent that the state won't be able to do anything except the odd show bust.

As avoidance techniques and technologies develope these will become increasingly rarer.

I think we can just ignore this and get back to work.

In an unrelated note, I'm releasing a web client for glbse.com today ( a few hours after I fix some site issues).

[error]

Looking at the hidden wiki, I counted 13 - that's thirteen - sites similar to Silk Road on Tor, some of which also accepted Bitcoin. I didn't look deeply into all of them, though. This does indicate, however, that this isn't going away.

[Nefario]

Looking at the hidden wiki, I counted 13 - that's thirteen - sites similar to Silk Road on Tor, some of which also accepted Bitcoin. I didn't look deeply into all of them, though. This does indicate, however, that this isn't going away.

It's not going to go away, from a numbers perspective, it will become infeasable for the state to prevent this sort of activity on a large scale.

Think of the effort it takes to shutdown a single site like SR, or catch a single seller, it's a huge amount of work that requires a lot of expensively tallented people to do. And that's just to catch one person or shut down one site.

Now multiply it a thousand times (probably more), now the resources needed by the state become absolutely stupendous. They are faced with the choice:
1) Give up, it's like drilling water.
2) Continue despite it's massive waste of resources and almost total lack of effect.
3) Pour army size resources into combating this issue, while at the same time curtailing peoples rights

The state can't afford 3, and they won't give up (I don't think they will) so 1 is off the plate, leaving 2.

The easiest targest will become the customers, so it will be individual users, buyers that will be the first arrested.

Also I was wondering how illegal is SR? They don't actually sell drugs themselves, they are simply an intermediary, matching up traders. SR themselves aren't doing anything illegal AFAIK (please tell me otherwise).

[Ricochet]

I also see that this is bitcoin, and the problem is with SR. Sure the site is using bitcoin, but it could just as easily have used USD notes.

The beauty of this is that they *did* choose Bitcoin, demonstrating (in a roundabout way) that its advantages over traditional currency are sound.

Also I was wondering how illegal is SR? They don't actually sell drugs themselves, they are simply an intermediary, matching up traders. SR themselves aren't doing anything illegal AFAIK (please tell me otherwise).

SR is a seller as well as the maintainer of the site, to my knowledge.  Many of the initial sales were directly from him/them.

[MoonShadow]

Except that's not how legislatures work. Other people in the Senate have to take him seriously for him to get anything done. And they don't.

Try selling that to the three percenters.

In a perfect world, I'd agree.

It seems that the average inteligence of the forum membership has dropped a bit since Shumer's army arrived.

Do you know what a "3 percenter" is?

[error]

I think this is the working definition of three percenter: http://sipseystreetirregulars.blogspot.com/2009/02/what-is-three-percenter.html

[MoonShadow]

I think this is the working definition of three percenter: http://sipseystreetirregulars.blogspot.com/2009/02/what-is-three-percenter.html

Stop doing his homework.

[drugsmang]

'the farmers market' has been around for 11yrs almost and is 'the ebay of drug selling' but they're more discreet about it since they use traceable payments through Pecunix and have PayPal cashiers.

there's around a dozen forums like p1ponline that are full of vendors. most of the hacker forums have drug sellers in europe, this is nothing new just Gawker made it sensationaltastic and buddy needs votes i guess.

lol @ 'seize the silk road domain' deerp tor

really all they can do is pose as sellers selling enormous amounts of drugs and hope to snare somebody. or attempt to trace a large bitcoin payment into cash that makes it's way back to the vendor.... would be very difficult in court for any lawyer to prove the coins that went through escrow and a half dozen other addresses were all headed to you specifically for drugs. much easier to get the low hanging fruit like all those illegal epharma websites making multi millions a year

[benjamindees]

Anyone who thinks this is about drugs and not Bitcoin is a moron frankly.

[Nefario]

Anyone who thinks this is about drugs and not Bitcoin is a moron frankly.

Actually I think it's about that election that's coming soon.

[alkor]

Anyone who thinks this is about drugs and not Bitcoin is a moron frankly.

This is what I have been trying to say all along.

[ene]

Also I was wondering how illegal is SR? They don't actually sell drugs themselves, they are simply an intermediary, matching up traders. SR themselves aren't doing anything illegal AFAIK (please tell me otherwise).

Do you really think the government is that stupid?

(h) Offenses involving dispensing of controlled substances by means of the Internet
(1) In general
It shall be unlawful for any person to knowingly or intentionally—
(A) deliver, distribute, or dispense a controlled substance by means of the Internet, except as authorized by this subchapter; or
(B) aid or abet (as such terms are used in section 2 of title 18) any activity described in subparagraph (A) that is not authorized by this subchapter.
(2) Examples
Examples of activities that violate paragraph (1) include, but are not limited to, knowingly or intentionally—
(A) delivering, distributing, or dispensing a controlled substance by means of the Internet by an online pharmacy that is not validly registered with a modification authorizing such activity as required by section 823 (f) of this title (unless exempt from such registration);
(B) writing a prescription for a controlled substance for the purpose of delivery, distribution, or dispensation by means of the Internet in violation of section 829(e) of the title;
(C) serving as an agent, intermediary, or other entity that causes the Internet to be used to bring together a buyer and seller to engage in the dispensing of a controlled substance in a manner not authorized by sections [2] 823(f) or 829(e) of this title;
(D) offering to fill a prescription for a controlled substance based solely on a consumer’s completion of an online medical questionnaire; and
(E) making a material false, fictitious, or fraudulent statement or representation in a notification or declaration under subsection (d) or (e), respectively, of section 831 of this title.

The penalties are the same as for drug dealing itself.

[error]

Do you really think the government is that stupid?

To be fair, sometimes they are.

[bitpop]

https://ianxz6zefk72ulzz.tor2web.org/

[uniman]

I agree. If bitcoins only purpose/advantage is as an inflation-hedge, there are numerous things that would serve that function. The major differentiator, in fact the only differentiator that will have a significant impact on economic growth and taxation policy, is bitcoin's potential for user-determined anonymity and untracability.

ie: mostly illegal activity

Yes.  Because retaking our freedom and extending it globally is going to require breaking quite a few laws.  Stop paying your taxes, stop filing paperwork with the Enemy.  Stop participating in the Enemy's staged political show.  Disconnect from their system.  Remove your money from its banking system and store your savings in new forms of wealth.  Develop a support network in the underground economy.  The old system is disintegrating and a new one is growing in it's place.  Your new life will be as freeman or slave, the choice is yours.  Easier said than done?  Sure.  Better than life on your knees?  I say yes.

[beastY]

Are we there already?:



"... and he provides that no one will be able to buy or to sell, except the one who has the mark ... "



Its a quote from a famous book.  Don't think its talking about the German Deutch mark   ?



Or have we already been there all along?



Is Bitcoin a threat to freedom of commerce medium, or is it providing wider medium choice?

[cryptoanarchist]

If Schumer has a problem with Silk Road, just wait until someone builds a site based on Jim Bell's now infamous essay, "Assassination Politics".

There'll probably be bids on his ass the first day its online.