For example, if a druglord is competing directly with a mom-and-pop drug cultivator on SilkRoad -- the drug lord has higher costs (bribery, paramilitary force, etc.) and only marginally lower COGS from scale. Because they are unable to intimidate or kill other cultivators, like they do in meat space, the druglord could be at a real disadvantage.

I mean, cartels have been pumped up to pretty ridiculous heights by the war on drugs but it's not at the point where it would be realistic to have them say "here is a list of a few hundred usernames from SilkRoad spread out all over North America. Find them and murder them all."

Even considering that their MO is more along the lines of picking out the ones they can find and making a gruesome spectacle to scare the rest it still seems unrealistic, although so do a lot of things happening with drugs cartels these days to be fair.

This is not exact, unfortunately, because it depends also on some other factors. If the drug lords decide that they want to impose the fact that they don't accept opposition, they are actually going to do exactly that. They've done it already for several bloggers, it would make little difference if they decided to do it for the little indipendent dealers.

Keep in mind that in order to take out a few hundred independent dealears, they only need to torture and kill a few, and have the word spread.

source: http://www.nydailynews.com/news/world/member-anonymous-relea...

http://techland.time.com/2011/11/10/fourth-blogger-reportedl...

First, drug cartels have very easily control of the IT infrastructures, and second, they now employ hackers exactly to keep the internet information under control.

They've killed several bloggers already, and you can be sure they thought they were anonymous.

These aren't all of equivalent difficulty...

Apparently not hard enough. It is being done in Europe already.

http://news.softpedia.com/news/Six-More-Silk-Road-Drug-Deale...

Offline there is: - competition via violence - political narcoterrorism - profit maximization by product dilution - profit maximization by product deception (most street MDMA is amphetamine+nBOME mixture)

Online there is: - competition via quality, price (violence impossible in anonymous marketplace) - political separation via anonymity - drastically reduced product dilution (people do reviews with sources like ecstasydata.org) - drastically reduced product deception (see "The LSD Avengers" for example)

When you contrast these aspects you see that the online marketplaces do operate like a free market with the biggest difference being the incentives associated with deceptive vending. I think thats valuable just because it provides a real world simulation for what variables of legalization would look like without forcing any one country to take the initial plunge by themselves.

Remember, the vast majority of offline drug deals do not consist of driving to the hood to pick up something from a gangster. I think this mis-perception clouds a lot of the analysis of operations like the Silk Road.

You don't have to move far up the chain before you see some serious violence. Personal use weed dealer? Probably not going to get killed. But robbed? Yes, definitely, seen it happen many times. Personal use coke, ecstasy, heroin dealer? Much more likely to experience violence. The dealer one level above, supplying the personal use dealers? They get killed all the time, despite not being drug kingpins in any sense. It only costs 1000$-2000$ to have someone killed in many parts of the US, so that should say something about the chance of violence that small-time dealers face.

Silk Road was more than personal use sales, I'd bet the majority of its revenue came from pounds and half pounds of weed, sheets of LSD, and orders of 500+ ecstasy pills. Heroin and coke haven't caught on as much yet in the online scene, with prices still a little above what well-connected users can get on the streets, but give it time. Also keep in mind that the online drug scene is more than just SR/BMR/Sheep and that there are private forums that deal strictly in wholesale.

If you're interested in an observed account of a drug gang, there is a book called "Gang Leader for a Day" where the author spent a lot of time in a housing project, with the guy who ran that faction of the gang. It has its flaws but it was an interesting read:

http://www.amazon.com/Gang-Leader-Day-Sudhir-Venkatesh-ebook...

Anybody running a small delivery line is almost always carrying an illegal gun, and willing to shoot competitors over peddling 8ths of coke.

if you read the report about the 1st silk road, you'll see that's not true

Alcohol and tobbacco dealers aren't involved in shootings in the streets - instead we find them in their shops, carefully following laws and doing business peacefully. Nor are their customers suffering from adulterated goods, or committing robberies to afford black-market prices.

Zetas do not hold up trucks full of tequilla and beer going into the US for extortion because they would be arrested. When your business is legal the solution for dealing with thugs is simple: call the cops or sue them. When you are gray area/illegal your only negotiation is to pay them or pick up a gun creating an all out war.

There are problems with some of the manufacture of cannabis. Criminal gangs use trafficked workers, forcing them to work in cannabis farms.

If I was a criminal gang using slaves to grow cannabis I think I'd market it as some home grown organic low yield crop with images of open fields and nice trees.

Just like eggs from caged hens don't show battery farms, but happy chickens walking in green fields. http://www.ecolovers.co.uk/wordpress/labelling-matters-the-r... etc.

It happens in England.

I think you mean more of an Amazon Marketplace of drugs.

> the drugs (in general) are still coming to the US the bloody, violent way via paramilitaries, druglords, etc.

If the information and payment infrastructure is good enough, it should make producers and shippers invisible to other producers and shippers, including the paramilitaries and drug-lords.

Not necessarily. A lot of them appear to be shipped in via post from outside the US direct to the buyer.

For one thing, no one's bothering to attack the US border, whereas in Brazil the government is fighting numerous active paramilitary groups which are basically all just fighting each other for control of the drug trade.

Cocaine and heroin are different stories, but are probably the exception compared to marijuana, various drugs that need to be lab-synthesized, and prescription pills being resold.

It has symbolic value I think. While I don't feel particularly anarchistic, I think a solid dose of a rebellious streak in society is good. Just to keep the government on its toes. A counterforce to governments tendency to do NSA scandal type stuff if you will.