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Oligopolistic Anonymity

Summary:
On Alphaville, Kadhim Shubber reports that just a few marketplaces handle the vast majority of illicit drugs-vs.-bitcoin trades. In short, the illicit bitcoin ecosystem is centered around a small number of services that could be subject to scrutiny, regulation and co-option by law enforcement. It’s a wild west, but luckily for the police all the bad guys are hanging out at a single saloon.

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On Alphaville, Kadhim Shubber reports that just a few marketplaces handle the vast majority of illicit drugs-vs.-bitcoin trades.

In short, the illicit bitcoin ecosystem is centered around a small number of services that could be subject to scrutiny, regulation and co-option by law enforcement.

It’s a wild west, but luckily for the police all the bad guys are hanging out at a single saloon.

Dirk Niepelt
Dirk Niepelt is Director of the Study Center Gerzensee and Professor at the University of Bern. A research fellow at the Centre for Economic Policy Research (CEPR, London), CESifo (Munich) research network member and member of the macroeconomic committee of the Verein für Socialpolitik, he served on the board of the Swiss Society of Economics and Statistics and was an invited professor at the University of Lausanne as well as a visiting professor at the Institute for International Economic Studies (IIES) at Stockholm University.

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