Black Market Drug Site 'Silk Road' Booming: $22 Million In Annual Sales

[Coolio]

buying it on the street? what kind of question is that

two things keep me from using SR

expensive
dont trust shipping it through customs

Well, they don't sell any of the types of drugs that I use "on the street", so I don't really know what he's comparing the prices to. Prices of what products in particular?

 

[martin33]

the expense is definatly a problem, but hell if u dont have a source on the street at least its there.

 

[LogicSoDeveloped]

Depends what kind of risk you are talking about.
Nobody on Silk Road can knife you and take your money while you are trying to buy something.

Not to mention not everyone has a street corner to purchase drugs and even then, not everyone wants the drugs that are commonly found on street corners.

 

[thujone]

Generally speaking:

Because of the law of supply and demand, when fewer bitcoins are available the ones that are left will be in higher demand, and therefore will have a higher value. So, as Bitcoins are lost, the remaining bitcoins will eventually increase in value to compensate. As the value of a bitcoin increases, the number of bitcoins required to purchase an item decreases. This is a deflationary economic model.

IIRC BTCs have a theoretical maximum of 21 million units. Units can be generated using cryptographic block ciphers which grow in complexity (meaning it takes more computing power to generate a BTC) as the existing circulation reaches the maximum.