Digital Gold

Digital Gold by Nathaniel Popper

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Authors: Nathaniel Popper
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out how to put all the pieces together was a minor miracle. Ross had studied physics in college and materials science in graduate school at Penn State. But he was only an amateur programmer and he had to learn the nuances of Tor and Bitcoin software as he went along, stumbling at many points. His ability to pull it off was a testament to his work ethic and business acumen. In response to Martti’s concern, he created an escrow service—essentially himself—to hold the Bitcoins of a customer until the drugs arrived in good condition, so the customer had some recourse if the pills or powder didn’t show up as expected. On the programming front, Ross managed to sweet-talk an old college friend, who was a more experienced programmer, into giving him lots of technical advice.
    In addition to all this, though, Ross’s ability to get Silk Road up and running was a product of his sheer desperation at a difficult moment in his life. Two years earlier, Ross had abandoned graduate school—despite having already published several scientific papers—because he wanted to do bigger things with his life. The first things he tried all fell flat, including a used book store he was running at the time he put Silk Road online. This had been one of the first prolonged periods of struggle in a life that had otherwisebeen quite charmed. Ross had movie star looks that won him comparisons to the actor Robert Pattinson, and he had always had an easy time making friends, attracting women, having fun, and grabbing brass rings like his Eagle Scout badge and the graduate school fellowship. His failures after leaving graduate school had led him, by late 2010, to a crisis of confidence in which he turned away from his friends and broke up with his girlfriend for a spell.
    â€œI felt ashamed of where my life was,” he wrote in the digital diary he kept on his laptop. “More and more my emotions and thoughts were ruling my life and my word was losing power.”
    Silk Road was, in some sense, a last heave—a Hail Mary in the parlance of Ross’s football-mad hometown. By the time he got it open in late January,he had, by his own accounting, gone through $20,000 of the $30,000 he had to his name.
    When Silk Road finally opened up to anyone with a Tor web browser it was a simple site, with pictures of Ross’s mushrooms next to their price in Bitcoin. At the top, there was a man in a turban riding a green camel, which would come to be the site’s trademark image. Within days, a few people signed up, and the first orders came in for Ross’s mushrooms. Soon thereafter, the first vendors joined in, offering to sell their own illegal wares.By the end of February, twenty-eight transactions had been made for products including LSD, mescaline, and ecstasy. Ross’s growing confidence was evident from a message he posted on the Bitcoin forum from his new screen name: silkroad.
    â€œThe general mood of this community is that we are up to something big, something that can really shake things up. Bitcoin and Tor are revolutionary and sites like Silk Road are just the beginning,” he wrote on the forum.
    In his own diary, Ross was more frank: “I am creating a year of prosperity and power beyond what I have ever experienced before.”

CHAPTER 7
    March 16, 2011
    T he response to Silk Road on the Bitcoin forums was initially somewhat tepid—only a few people chimed in. But it got much more attention on the most widely used message board for hackers—4chan—and new Silk Road members were soon pouring in, along with orders. By mid-March, the site had over 150 members. That was, in fact, more than Ross was equipped to handle. He had to return again and again to the friend who had been helping him with the code, to figure out how to deal with all the traffic. When the site went down on March 15, he chatted his friend Richard Bates in a panic.
    â€œi’m so stressed! i gotta get this site up

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