As Silk Road 2.0 Pops Up, The Government Needs To Avoid The Temptation Of Moral Panic
from the moral-panic-a-coming dept
Plenty of digital ink has been spilled about the supposed launch of Silk Road 2.0, a near copy of the original infamous Silk Road "dark web" shopping site for all sorts of illegal things. But, perhaps more interesting is how Congress suddenly feels the need to jump in and try to understand the dark web and things like Bitcoin:The Senate Homeland Security Committee, officials tell TIME, plans on holding hearings on Bitcoin within the month. The committee sent letters to nine federal agencies in July asking for their thoughts on Bitcoins and other virtual currencies in the hopes of developing a holistic approach to the so-called cryptocurrency that neither stifles the currency’s potential nor enables criminals to abuse it.This should be cause for concern. After all, it wasn't that long ago, that Senator Chuck Schumer absolutely flipped his lid about Bitcoin, claiming that Bitcoin itself was "money laundering" after some of the first news stories about the original Silk Road came out. The fact that he so immediately conflated the dark web with Bitcoin should be problematic already -- though, one hopes that he's since learned some more about Bitcoin and has realized his original statements were exaggerated.
Of course, any time Congress gets involved, especially with the kind of story that can be portrayed the way Silk Road has been portrayed, you almost expect the moral panic and grandstanding to reach a fever pitch. The one (minor) good sign in all of this is that the Senator who is putting together that hearing on Bitcoin, Tom Carper, seems to be going out of his way to make it clear that he isn't looking to have a kneejerk reaction to all of this -- especially if it might stifle important innovations. After news broke of the new Silk Road, he was quick to put out the following statement:
“This new website – launched barely a month after Federal agents shut down the original Silk Road -- underscores the inescapable reality that technology is dynamic and ever-evolving and that government policy needs to adapt accordingly. Rather than play ‘whack-a-mole’ with the latest website, currency, or other method criminals are using in an effort to evade the law, we need to develop thoughtful, nimble and sensible federal policies that protect the public without stifling innovation and economic growth. Our committee intends to have that conversation – among others - at our hearing this month on virtual currency.”That's a whole hell of a lot better than Schumer's "it's money laundering!" grandstanding from two years ago -- but that doesn't mean that others in Congress will be as willing as Carper to take a careful, measured and informed approach to all of this. While it sounds good to create policies that "protect the public without stifling innovation and economic growth," in practice that's often a lot more difficult than most people think -- and Congress often has an uncanny ability to say one thing and put in place policies that do the exact opposite.
While some people like to mock concepts like the dark web and Bitcoin, there's a tremendous amount of important innovation happening within and around each of them. While they may initially be used, in part, for illegal activity, that's going to become less and less of the predominant use, and all sorts of powerful new tools and services are likely to develop -- if allowed. Bitcoin, in particular, has many powerful uses beyond just being a currency (in fact, that may be one of its least interesting characteristics), but overly regulating it based on moral panics might kill that off. I already know a few entrepreneurs and investors who are unwilling to commit to some really interesting Bitcoin projects, just because they know the regulatory situation might destroy the space overnight. Hopefully, Congress will avoid that temptation to go on a full out moral panic -- but their track record with these kinds of things isn't that great.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: bitcoin, chuck schumer, congress, dark web, homeland security committee, moral panics, silk road, tom carper
Reader Comments
Subscribe: RSS
View by: Time | Thread
Can you explain?
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
If you explore the details of Bitcoin you can see a variety of examples. Here are just a few, about how it can be used to sign documents and to do authenticated time stamps, or even act as a distributed DNS system.
http://localbitcoins.blogspot.com/2013/05/signing-documents-with-bitcoin.html
https://bitcoint alk.org/index.php?topic=52715.0
http://dot-bit.org/Main_Page
And, just as I was finishing this email, someone pointed me to a much more thorough look at Bitcoin as a platform beyond currency:
http://startupboy.com/2013/11/07/bitcoin-the-internet-of-money/
That explains a lot of what I meant...
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
http://hackingdistributed.com/2013/11/04/bitcoin-is-broken/
[ link to this | view in chronology ]
Re: Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
[ link to this | view in chronology ]
Re: Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
So is our currency. The government can create inflation (stealing the value of our earned dollars) at will.
and currency exchange rates do the same thing, they rely on exchanges of one currency to another while credit cards and debit cards and bank accounts allow for an exchange between 'virtual' and 'real' currency. Currency allows for an exchange between 'virtual' and 'real' value (that which you buy).
If the Bitcoin protcol has problems, if there is a problem that allows a small group of people to have way too much influence, if there is some other flaw in the system (a flaw that your simple mind is too unsophisticated to understand even if it exists), then we can argue that as a separate issue. and flaws very well may exist and be discovered in the future. But to say that Bitcoin is flawed simply because it allows for exchanges without any further explanation is not very convincing. You need to elaborate.
[ link to this | view in chronology ]
Re: Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
[ link to this | view in chronology ]
Re: Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
http://hackingdistributed.com/2013/11/04/bitcoin-is-broken/
Good explanation for why that paper is not particularly accurate:
http://www.washingtonpost.com/blogs/the-switch/wp/2013/11/07/no-bitcoin-isnt-broken/
[ link to this | view in chronology ]
Re: Re: Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
[ link to this | view in chronology ]
Re: Re: Re:
[ link to this | view in chronology ]
Re: Wrong, MIke! Bitcoin is just another Ponzi scheme that'll be taken over.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
http://yro.slashdot.org/story/13/10/30/1546234/cable-lobbyist-tom-wheeler-confirmed-as-new -fcc-chief
Look at government established broadcasting, cableco, and taxi cab monopolies. Look at the mess the patent system has turned into. Look at the plutocratic mess copy'right' has become, with infinite minus a day durations and retroactive extensions in exchange for campaign contributions and revolving door favors. Look at the revolving door problem in congress. The FDA is nothing but an industry sock puppet. Our existing laws clearly have absolutely no regard for the public interest and if anyone thinks for a minute that the government wants to introduce new laws with the intent of serving the public interest you are very naive. Congress needs to fix the existing laws to serve the public interest before they introduce new laws but I don't see that happening because the the private interests that benefit from the existing laws have way too much influence.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
WTF? While we're at it, let's eliminate anything criminals can abuse and good luck with that. Seriously, stupid people are stupid.
[ link to this | view in chronology ]
Would they care if there was no money in it?
Congress is soo simple at times. I can't imagine that they are so much concerned about the 'criminal activity' that bitcoin may cause considering their own methods.
I can imagine how many dollar signs are appearing in their eyes and the notition that they don't yet have their hooks in it yet.
[ link to this | view in chronology ]
It is impossible to create a tool that cannot be used against the dictates of any philosophy, good or evil.
Cash is good because it provides immediate liquidity for purchasing life's necessities. Cash is evil because it can purchase children for sex slaves.
Drones are good because we can monitor wildfires as they progress without endangering human lives that would otherwise be needed to pilot the planes close to the blazing inferno. Drones are evil because some secret governmental organization can apply explosive force against anyone, anywhere, without exposing themselves to retaliation, self defense, or even public scrutiny.
This pen in my pocket is good because I can use it to express ideas that will live beyond my fragile body, inspiring countless generations to the noblest heights of humanity, progressing the freedom and egalitarianism of untold civilizations. Or I can stab someone in the neck with it.
Please, dear congress critters, please; stop blaming the tools.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
[ link to this | view in chronology ]
fuck congress
[ link to this | view in chronology ]
Re: fuck congress
[ link to this | view in chronology ]
I can tell you from first hand experience the answer is hell no. I'm still a junkie today and I'll be one for the rest of my life. Though today I'm doing it legally "methadone clinic" the fact remains I'm still hooked. If they shut down I'd be back on the needle in under three days.
To get from my house to the clinic is three hours one way and for a long time I had to do it like that 6 days a week. That meant I had to drive there get my shit dive to work then drive home go to sleep then back to the clinic or drive to the clinic from work and sleep in my car. Because of that I had to cut my working hours way back. :/
I'm not any better off on methadone than I was on bth... In fact I never messed with anyone while on either methadone or heroin and I held down my job with no problems for years now.. The only reason I'm on methadone was because I was arrested for heroin possession which cost me my job. Not that I needed it since I hit the win for life ages ago, but still I enjoyed keeping busy and they took that from me for a long time. It took a year to build up enough take home days to get a full time job again.
Luckily now I have a new job at the mines which is okay, but hey it beats sitting around all day.
That said silk road should not have to exist. If people want to do drugs let them. It's not like society would break down.. If it did it would have from alcohol a very long time ago. People fuck up while drunk they're arrested just like anyone else.
The only reason shit is illegal is because of alcohol companies lobbying for it. Drugs like heroin were very dangerous to their sales and they could not have that.
I have a 1920's Sears catalog with heroin for sale in it. In fact Sears sold opium, heroin, and cocaine before they were illegal.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
�which must surely mean that next they�ll be reviewing the US Dollar as a monetary system, because US currency can be used to purchase illegal things like drugs!! omg!!
[ link to this | view in chronology ]
Legalize and tax it
How many people will shop at the Silk Road simply because it's illegal and the government tells them not to?
How many people will shop at the Silk Road when they realize they have to pay a 60% sales tax? The vendors selling there can lower the prices all they want, but customers won't want to pay the high sales tax... and look what happens: the government kills the business without making anything illegal.
It's like the argument for legalizing marijuana: the government gets income from taxes, it doesn't have to spend money on arresting people and moving them through the criminal justice system, and it can regulate quality.
This happened with Prohibition in the 1920's, so why can't the government learn from it?
[ link to this | view in chronology ]