DEA agent discusses Bitcoin in class today

[hazek]

The US government is so far behind in technological frontiers that it is embarrassing. ...

Extrapolate that to technology, which is infinitely more expensive and equally complex, and you've got to realize the government can't keep up. It's just like any industry...bigger=bloated.

I am surprised no one has talked about Mises and his work in Human Action about government's inability to perform Economic Calculation. That is the root problem of their inability to allocate resources without tremendous waste and there is nothing they can do about it. And this is even more pronounced with technology which because of complexity that requires greater division and specialization of labor.

Plus, it all comes down to the cost of protection and return on investment from extortion. Sure, if the NSA is really after you then they are going to find you and could even run a Tempest attack via Van Eck phreaking if they wanted to. But even in bureaucracies there are limited resources which have to be allocated. DEA agents are going to go after the targets where returns from civil forfeiture are highest because that is how their budgets are funded.

Sure, tracking bitcoin transactions is possible but is it probable? Probably not because tracking that takes 2 minutes with Paypal or a credit card takes hundreds of hours and tens of thousands of dollars with bitcoin. The cost of protection massively plummets while the return on investment from tracking or attempting to seize, etc. skyrocket at exponential rates. Thus, Bitcoin functions like all other forms of cryptography with intractability and therefore creating strong surveillance protection.

Nice necro. I think Silk Road is nothing more than a government honey-pot. I don’t even think it’s real. Why would anyone wanting to buy drugs go to all that trouble when you can go to your local university and buy anything you want with no risk? The government develops the best drugs anyway. Ever heard of Project MK-Ultra: http://en.wikipedia.org/wiki/MKULTRA

It's real alright. Why? Cause of convenience, safety, quality, you know all the other attributes of a services that makes it more attractive than it's competition..

[moni3z]

It still could be nothing more than a government honey-pot. I can’t believe all that is easier than just buying drugs from friends at school like we did when I was a kid. Everyone used to know who the stoner kids were. lol

Yeah now that stoner kid buys his dope off SR and sells locally

[MysteryMiner]

It still could be nothing more than a government honey-pot. I can’t believe all that is easier than just buying drugs from friends at school like we did when I was a kid. Everyone used to know who the stoner kids were. lol

Yeah now that stoner kid buys his dope off SR and sells locally

Exactly!

[repentance]

Everyone used to know who the stoner kids were. lol

Yeah but did everyone know a kid who could easily get them other drugs?  Does everyone know how to get hold of research chemicals (which you typically have to get from overseas anyway)?

I think it's inevitable that at some point law enforcement somewhere will use SR as a honey-pot.  That doesn't mean that SR started out that way, though.  The one issue I see for users is that in many places buying locally wouldn't put them at significant legal risk - if they got caught they'd be looking at a minor possession charge or a caution.  Once they're buying from overseas, though, the risk of importation charges arises and those tend to be more severe.

[Fcx35x10]

It still could be nothing more than a government honey-pot. I can’t believe all that is easier than just buying drugs from friends at school like we did when I was a kid. Everyone used to know who the stoner kids were. lol

Yeah now that stoner kid buys his dope off SR and sells locally

Good point, I guess it has to be coming from somewhere. I do remember there was this one guy in my neighborhood that had really bright lights shining out of his bedroom window even late at night.  

lol

[HorseRider]

most dangerous is cops busting some seller and using his SR seller account to gather information about buyers.

Is this legal for DEA?

[Foxpup]

most dangerous is cops busting some seller and using his SR seller account to gather information about buyers.

Is this legal for DEA?

It is if the seller agrees to it in exchange for a lighter sentence.

[mobile4ever]

In the case of the "drug war," it being difficult indeed has made it impossible, so his words are kinda funny. The DEA fails every day with more easily tracked trafficking methods. Bitcoin is just one more win for the free market demand of goods, and one more loss for the tyranny trying to prevent it.

This guy says it is possible.

With a little work, apparently.