We’ve noted before that the cryptocurrency Bitcoin has been adopted enthusiastically by those engaged in legally dubious pursuits like gambling and drug purchases. Forbes points us to a new study that backs up this proposition with hard data.
Nicolas Christin, a researcher at Carnegie Mellon, monitored the online marketplace Silk Road over a period of months. The research turned up some striking statistics about the volume and distribution of transactions made on the secretive site, which primarily facilitates drug deals.
Silk Road sellers have collectively had around $1.9 million of sales per month in recent months. Almost 1,400 sellers have participated in the marketplace, and they have collectively earned positive ratings from 97.8 percent of buyers. And the service is growing, with Silk Road’s estimated commission revenue roughly doubling between March and July of this year.
Please watch and see what happens when Portugal decriminalizes drugs.
“The government in Portugal has no plans to back down. Although the Netherlands is the European country most associated with liberal drug laws, it has already been ten years since Portugal became the first European nation to take the brave step of decriminalizing possession of all drugs within its borders—from marijuana to heroin, and everything in between. This controversial move went into effect in June of 2001, in response to the country’s spiraling HIV/AIDS statistics. While many critics in the poor and largely conservative country attacked the sea change in drug policy, fearing it would lead to drug tourism while simultaneously worsening the country’s already shockingly high rate of hard drug use, a report published in 2009 by the Cato Institute tells a different story. Glenn Greenwald, the attorney and author who conducted the research, told Time: “Judging by every metric, drug decriminalization in Portugal has been a resounding success. It has enabled the Portuguese government to manage and control the drug problem far better than virtually every other Western country.”
Joaquin “El Chapo” Guzman Loera reported head of the Sinaloa cartel in Mexico, ranked 701st on Forbes’ yearly report of the wealthiest men alive, and worth an estimated $1 billion, today officially thanked United States politicians for making sure that drugs remain illegal. According to one of his closest confidants, he said, “I couldn’t have gotten so stinking rich without George Bush, George Bush Jr., Ronald Reagan, even El Presidente Obama, none of them have the cajones to stand up to all the big money that wants to keep this stuff illegal. From the bottom of my heart, I want to say, Gracias amigos, I owe my whole empire to you.”
The mortality rates from unintentional drug overdose (not including alcohol) have risen steadily since the early 1970s, and over the past ten years they have reached historic highs. Rates are currently 4 to 5 times higher than the rates during the “black tar” heroin epidemic in the mid-1970s and more than twice what they were during the peak years of crack cocaine in the early 1990s.
The rate shown for 2005 translates into 22,400 unintentional and intentional drug overdose deaths. To put this in context, just over 17,000 homicides occurred in 2005. The number of drug overdose deaths does not yet exceed the number of motor vehicle crash deaths overall, but for the first time more people in the 45-54 age group now die of drug overdoses than from traffic crashes.