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Topic: Operator of Silk Road 2.0, Blake Benthall, arrested yesterday by FBI agents in S - page 5. (Read 8409 times)

sr. member
Activity: 364
Merit: 250
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.
sr. member
Activity: 378
Merit: 254
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.
legendary
Activity: 1176
Merit: 1005
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.
legendary
Activity: 1176
Merit: 1005
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.
full member
Activity: 336
Merit: 100
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
legendary
Activity: 2170
Merit: 1094
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
hero member
Activity: 560
Merit: 500
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
legendary
Activity: 980
Merit: 1000
Need a campaign manager? PM me
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.
legendary
Activity: 1834
Merit: 1020
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.
hero member
Activity: 560
Merit: 500
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
legendary
Activity: 1834
Merit: 1020
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...
hero member
Activity: 756
Merit: 506
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.
full member
Activity: 126
Merit: 100
More and more bitcoins will continue to be removed from circulation for years to come....... Value of these coins will start rising crazy soon!
hero member
Activity: 672
Merit: 500
http://fuk.io - check it out!
hero member
Activity: 924
Merit: 1000
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.
full member
Activity: 181
Merit: 100
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.
legendary
Activity: 3710
Merit: 5286
Setting up shop in essentially the same town as DPR got busted?  What an idiot.
legendary
Activity: 1281
Merit: 1000
☑ ♟ ☐ ♚
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.
legendary
Activity: 1615
Merit: 1000
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.
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