Operator of Silk Road 2.0, Blake Benthall, arrested yesterday by FBI agents in S - page 5.

Raystonn

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Quote from: Tzupy on November 06, 2014, 04:07:42 PM

Quoting from cryptocoinsnews article:

Whenever users deposited bitcoins into their account, they really sent it to an account with three keys, one given to the buyer, the seller, and the site admins.
Obviously, the site admins’ keys are compromised; however, buyers and sellers on these sites will be able to withdraw their bitcoins, or even finish their transactions, without the site admins’ keys.
Since the FBI only controls the site admins’ keys, they can’t seize the bitcoins and auction them. Cheesy

Oh great. In before Lawsky makes multisig wallets illegal.

NotLambchop

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Quote from: darkmule on November 06, 2014, 04:43:05 PM

Quote from: rebuilder on November 06, 2014, 01:06:41 PM

Bearish. Trade in illicit goods and services is one of the truly unique uses for cryptocurrency. That people involved in the trade seem to be unable to avoid capture casts doubt on the viability of dark marketplaces, and is likely to get their customers to reconsider just how safe they can expect to be.

How is that "unique?" Unique means one of a kind. If what you're saying is true, there was literally no trade in illicit goods and services before cryptocurrency because that is "unique" to cryptocurrency.

If anything, the nonrepudiability of Bitcoin and other cryptocurrencies makes it, at best, no better for selling illicit goods and services than plain old paper currency, which unlike cryptocurrency, has no memory.

Good point. Except for minor difficulties like anonymously delivering paper money to an undisclosed [recipient's] address.

darkmule

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Quote from: riiiiising on November 06, 2014, 04:17:23 PM

Q: Why use bitcoins?
A: Because they're not controlled by any central authority!

Q: What does this latest silk road bust mean for bitcoin?
A: It's good news! Because a central authority has likely taken many out of circulation, thereby increasing scarcity!

Do you guys ever read back what you're saying? Huh

But that's wrong, and you equivocate to make your bogus argument seem correct. Your first example would be why use BITCOIN. Not why use "bitcoins."

Bitcoin itself is under the control of no central authority.

However, anyone can use "bitcoins," even a central authority. That doesn't mean they control the protocol or the currency itself, but that just like anyone else, there is no way to exclude them from being a player in the marketplace. However you get control of individual units of currency, you are capable of doing with them what you choose.

darkmule

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Quote from: rebuilder on November 06, 2014, 01:06:41 PM

Bearish. Trade in illicit goods and services is one of the truly unique uses for cryptocurrency. That people involved in the trade seem to be unable to avoid capture casts doubt on the viability of dark marketplaces, and is likely to get their customers to reconsider just how safe they can expect to be.

How is that "unique?" Unique means one of a kind. If what you're saying is true, there was literally no trade in illicit goods and services before cryptocurrency because that is "unique" to cryptocurrency.

If anything, the nonrepudiability of Bitcoin and other cryptocurrencies makes it, at best, no better for selling illicit goods and services than plain old paper currency, which unlike cryptocurrency, has no memory.

riiiiising

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Quote from: fewcoins on November 06, 2014, 02:44:53 PM

More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

Let me get this straight..

Q: Why use bitcoins?
A: Because they're not controlled by any central authority!

Q: What does this latest silk road bust mean for bitcoin?
A: It's good news! Because a central authority has likely taken many out of circulation, thereby increasing scarcity!

Do you guys ever read back what you're saying? Huh

Tzupy

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Quoting from cryptocoinsnews article:

Whenever users deposited bitcoins into their account, they really sent it to an account with three keys, one given to the buyer, the seller, and the site admins.
Obviously, the site admins’ keys are compromised; however, buyers and sellers on these sites will be able to withdraw their bitcoins, or even finish their transactions, without the site admins’ keys.
Since the FBI only controls the site admins’ keys, they can’t seize the bitcoins and auction them. Cheesy

MF Doom

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Quote from: the joint on November 06, 2014, 03:32:44 PM

Quote from: MF Doom on November 06, 2014, 03:18:52 PM

Quote from: the joint on November 06, 2014, 03:04:43 PM

Quote from: fewcoins on November 06, 2014, 02:44:53 PM

More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

Assuming demand and all else remains the same...

Demand is low at the moment, and wouldn't this only lessen demand? I mean now these criminal users have nowhere to spend their bitcoins and no reason to get any more. So naturally demand will be DECREASING

I personally do not believe I have enough information to make any assumptions about how this will affect demand. On one hand, if illicit activity catalyzes demand to a significant degree, it could hurt demand. On the other hand, if weary investors or business owners who have been skeptical to enter the market due to concerns over liability regarding anonymous, illicit activity catch word of this news, this may ease their concerns and encourage demand.

It's hard to say in my opinion.

And it seems bitcoin price always moves counter to what you would expect, so in summary, who knows what will happen, just stay optimistic (if your holding) and pessimistic if you want to buy in lower Grin

Carra23

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Need a campaign manager? PM me

Quote from: rebuilder on November 06, 2014, 01:06:41 PM

Bearish. Trade in illicit goods and services is one of the truly unique uses for cryptocurrency. That people involved in the trade seem to be unable to avoid capture casts doubt on the viability of dark marketplaces, and is likely to get their customers to reconsider just how safe they can expect to be.

Trade is not the price driver now. The current price is pure speculative.

Have to see if its bullish or bearish. So far the exchanges are tending to bullish.

the joint

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Quote from: MF Doom on November 06, 2014, 03:18:52 PM

Quote from: the joint on November 06, 2014, 03:04:43 PM

Quote from: fewcoins on November 06, 2014, 02:44:53 PM

More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

Assuming demand and all else remains the same...

Demand is low at the moment, and wouldn't this only lessen demand? I mean now these criminal users have nowhere to spend their bitcoins and no reason to get any more. So naturally demand will be DECREASING

I personally do not believe I have enough information to make any assumptions about how this will affect demand. On one hand, if illicit activity catalyzes demand to a significant degree, it could hurt demand. On the other hand, if weary investors or business owners who have been skeptical to enter the market due to concerns over liability regarding anonymous, illicit activity catch word of this news, this may ease their concerns and encourage demand.

It's hard to say in my opinion.

tbcoin

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https://s3.amazonaws.com/s3.documentcloud.org/documents/1354808/blake-benthall-complaint.pdf

MF Doom

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Quote from: the joint on November 06, 2014, 03:04:43 PM

Quote from: fewcoins on November 06, 2014, 02:44:53 PM

More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

Assuming demand and all else remains the same...

Demand is low at the moment, and wouldn't this only lessen demand? I mean now these criminal users have nowhere to spend their bitcoins and no reason to get any more. So naturally demand will be DECREASING

the joint

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Quote from: fewcoins on November 06, 2014, 02:44:53 PM

More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

Assuming demand and all else remains the same...

TaunSew

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Quote from: fewcoins on November 06, 2014, 02:44:53 PM

More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

Yes this is speculated why Bitcoin went up after the Silkroad - when you remove a lot of the coins from everyday volume then it introduces more scarcity.

fewcoins

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More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!

kingscrown

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http://fuk.io - check it out!

lets hope its bullish!

bassclef

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Quote from: MonadTran on November 06, 2014, 01:51:20 PM

Quote from: Torque on November 06, 2014, 01:39:24 PM

Setting up shop in essentially the same town as DPR got busted?

My thoughts exactly. It's like, the most dangerous place in the world for setting up this kind of business. The cost of living in CA is also outrageous, does not make too much sense to stay there if you are earning the income online.

And his hard drive was unencrypted? Gaaahhhh.

MonadTran

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Quote from: Torque on November 06, 2014, 01:39:24 PM

Setting up shop in essentially the same town as DPR got busted?

My thoughts exactly. It's like, the most dangerous place in the world for setting up this kind of business. The cost of living in CA is also outrageous, does not make too much sense to stay there if you are earning the income online.

Torque

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Setting up shop in essentially the same town as DPR got busted? What an idiot.

Hunyadi

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☑ ♟ ☐ ♚

Underground guys should start using ~~anon crypto like Monero or~~ decentralized marketplace like OpenBazaar.

e. I don't know if bitcoin was the reason for the arrest.

rebuilder

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Bearish. Trade in illicit goods and services is one of the truly unique uses for cryptocurrency. That people involved in the trade seem to be unable to avoid capture casts doubt on the viability of dark marketplaces, and is likely to get their customers to reconsider just how safe they can expect to be.

Topic: Operator of Silk Road 2.0, Blake Benthall, arrested yesterday by FBI agents in S - page 5. (Read 8418 times)