Beyond the more ardent libertarians, anarchists and cryptography wonks, responses to the Bitcoin story were largely indifferent – it’s a currency for nerds, so what? But give that currency a demonstrable use, and all of a sudden the “human interest” angle leaps right out: OMFG ANONYMOUS DRUG TRADING ON THE INTERTUBES!
Silk Road, a digital black market that sits just below most internet users’ purview, does resemble something from a cyberpunk novel. [[ Right, of course – and what *doesn’t* resemble a cyberpunk novel these days, Wired? ]] Through a combination of anonymity technology and a sophisticated user-feedback system, Silk Road makes buying and selling illegal drugs as easy as buying used electronics — and seemingly as safe. It’s Amazon — if Amazon sold mind-altering chemicals.
In a nutshell: obscure (and probably regularly-changed) URLs, access only permitted by users running the TOR anonymiser, all transactions made using the untraceable Bitcoins. The ultimate anonymised storefront, in other words, complete with an eBay-esque reputation system. Cue tabloid moral panic in 5… 4… 3…
Most interesting of all is watching the schisms open up in the strata of geek libertarianism, though:
… not all Bitcoin enthusiasts embrace Silk Road. Some think the association with drugs will tarnish the young technology, or might draw the attention of federal authorities. “The real story with Silk Road is the quantity of people anxious to escape a centralized currency and trade,” a longtime bitcoin user named Maiya told us in a chat. “Some of us view Bitcoin as a real currency, not drug barter tokens.”
Maiya’s right about the “true story” there, but that last sentence is priceless – the cognitive dissonance of being in favour of a decentralised and anonymous currency but wanting to restrict what people can trade with it is really rather spectacular.
Wired‘s coverage there is pretty measured, all things considered; watching this story plough into the mainstream media is going to be a textbook demo of escalating hysteria. *fetches popcorn*