"Federal agencies will attempt to regulate Bitcoin, according to the Mercatus Center's Jerry Brito. Given that regulation simply cannot control the new currency, the question is whether that regulation will foster its growth or relegate it to illicit uses." Continue reading →
"Almost all of the major Internet industry giants are based in the United States. The tradition of strong entrepreneurship practiced in the US since their inception, mixed with their purchasing power and history of acquiring any sufficiently profitable venture or fascinating technology from abroad, has put the US into a prime position to be the global leader in provision of Internet services. That may just have ended. While US dominance over the roughly $11 trillion/year global Internet services market is still unchallenged, the damage that the revelations made about NSA’s vast global surveillance scheme may stymie their growth and perhaps even turn them into a localized recession." Continue reading →
"Imagine if there were an Amazon.com for drugs. That, roughly, is what the Silk Road, a mail-order drugs service hidden in the dark parts of the internet, tries to be. Many drug users cannot wait two or three days for delivery of their next hit. But it is all a lot easier than waiting for the man. The police may not agree. Still, there is probably less chance of a drug deal on the Silk Road turning into a murder scene, and customer reviews may be a better guide to quality—and so the risk of overdose and death—than a street-corner salesman’s patter. Buying a line online has never been easier." Continue reading →
"When Ars Technica editor Nate Anderson sat down to write The Internet Police, Edward Snowden hadn’t yet decided to add some excitement to the National Security Agency’s summer by leaking a trove of surveillance secrets to The Guardian. As a result, Anderson’s book doesn’t mention Snowden’s escapade, which will likely become the security-and-paranoia story of the year, if not the decade. However, The Internet Police is a handy guide to the slow and unstoppable rise of the online security state, as well as the libertarian and criminal elements that have done their level best to counter that surveillance." Continue reading →
"By late winter, Poitras decided that the stranger with whom she was communicating was credible. There were none of the provocations that she would expect from a government agent — no requests for information about the people she was in touch with, no questions about what she was working on. Snowden told her early on that she would need to work with someone else, and that she should reach out to Greenwald. She was unaware that Snowden had already tried to contact Greenwald, and Greenwald would not realize until he met Snowden in Hong Kong that this was the person who had contacted him more than six months earlier." Continue reading →
"I am impressed that Ladar chose to shutdown his service rather than continue to promise something that he now unequivocally knew was no longer secure in the face of law enforcement’s quasi-legal incursions. It would have probably been better if he hadn’t attempted to offer security that was beyond his ability to provide. During my weekly Security Now! podcast with Leo Laporte, we use the acronym 'TNO' (Trust No One) to refer to any system where readily available cryptographic technology is properly employed in such a fashion that it is not necessary to trust the behavior of any third party." Continue reading →
"The hardest part of scoring drugs in the age of the digital black market? Choosing among all the consumer-friendly websites ready to sell them. Our results were mixed, and far from scientific, since we made only one buy per site, and each site hosts dozens or hundreds of vendors. (The sites’ third-party seller model is more akin to eBay and Etsy than Amazon or Zappos.) We also couldn’t test the quality of the products–Our lawyer insisted we destroy them. (See video below.) But this much is clear: the age of narcotics e-commerce has arrived." Continue reading →
"Anyone can download and run Tor, exchange some dollars or euros for the digital currency Bitcoin and go shopping on Silk Road for drugs that are vacuum-sealed and discreetly mailed via the U.S. Postal Service. By one measure, Roberts’ eBay-like service was grossing $1.2 million a month in the first half of 2012. Since then the site has doubled its product listings, and revenue now hits an annual run-rate of $30 million to $45 million by FORBES’ estimate. One analysis found that Silk Road received around 60,000 visits a day, mostly users seeking to buy or sell drugs, along with other illicit items including unregulated cigarettes and forged documents." Continue reading →
"The owner of an encrypted email service used by ex-NSA contractor Edward Snowden said he has been threatened with criminal charges for refusing to comply with a secret surveillance order to turn over information about his customers. 'I could be arrested for this action,' Ladar Levison told NBC News about his decision to shut down his company, Lavabit, in protest over a secret court order he had received from a federal court that is overseeing the investigation into Snowden. Levison said he started Lavabit 10 years ago to capitalize on public concerns about the Patriot Act. Until he shut down, his small company was generating about $100,000 in revenue annually." Continue reading →
"Cryptocurrencies are threatening because no central entity can fully control them and they also represent a nearly free and anonymous payment application. It's an algorithm that has the potential to make central banks, commercial banks, private banks, and the tax collectors obsolete. In other words, cryptocoins may be epoch changing for society. In the same way the Internet killed publishing or how VoIP killed long distance telephone carriers, cryptocoins may in fact kill debt-based money and brick-and-mortar banking. The banking cartel along with the government are scrambling to protect their territory and regulate Bitcoin." Continue reading →