Bitcoin may be let loose now Silk Road has been shut down

Now that Silk Road has closed without any discernible damage to Bitcoin's value, maybe we can accept it's here to stay.

You can't kill Bitcoin. It will not die. The Silk Road shutdown is the second event to challenge its stability and it’s come through with barely a scratch. And, despite the libertarian beliefs of many of its advocates, in part that’s due to Bitcoin going legit in the eyes of the law.

To recap, Silk Road was an online marketplace where users could buy and sell (almost) anything. Mostly that meant drugs, and in the criminal complaint filed by the FBI against its alleged owner/operator Ross Ulbricht it lists 1,229,465 transactions between 6 February and 23 July 2013 - or 7,362 transactions a day - all of which were conducted using Bitcoin.

Indeed, up until this year the story of Bitcoin and the story of Silk Road were essentially the same. The unstable bubble that grew over the first three months of 2013 to burst in April was driven at least partly by media commentary about Bitcoin being a bubble, and it had to be a bubble because there's no reason to use Bitcoin for anything other than gambling or drugs.

Except, Bitcoin recovered relatively quickly - and its price has remained stable right up until the FBI arrested Ulbricht in San Francisco. People no longer bother keeping lists of businesses that accept Bitcoin up to date because there are just too many, and it began to gain something quite crucial to its long-term survival - legitimacy.

Here's a graph that shows what I mean:

That's the trading chart for the past month on Mt Gox, the world’s largest Bitcoin trading exchange. That big spike is the market reacting to the news of Ulbricht’s arrest, and while the price drops for maybe a day, it’s soon back to the level it was before the FBI’s announcement. That’s not panic selling by Bitcoin users, worried that their assets will soon be worthless.

Now look at this:

Perhaps this is more tenuous as evidence, but that’s the Google Trends data for mentions of Bitcoin versus mentions of Silk Road. They both jump as the arrest is reported around the world, but Bitcoin by not as much. It's as if Bitcoin isn't as central to the story of Silk Road as it once was. The irony here, for a currency that sidesteps government authority, is that governments may have helped in this.

The stereotype of the Bitcoin advocate is someone who’s a libertarian, an Ayn Rand fan, a minarchist who feels that a return to the gold standard would solve most of the world’s economic problems. Bitcoin - the ever-deflating, decentralised, uncontrollable currency - is meant to be the 21st century gold standard. However, despite Bitcoin’s clear ability to be used to circumvent the law, many of its functions can be easily absorbed by the rest of the legitimate economy.

Bitcoin’s central blockchain records every transaction, and if a user is public about owning a wallet there’s no way they can send or receive funds without a note being generated. That’s great for tax agencies. “Tumblers” - which split up transactions into tiny amounts and mix them with other payments to make them so hard to trace even the NSA can’t manage it - can be used for laundering cash, but they’re not built into the infrastructure.

Several governments have given their blessings for Bitcoin. There's been a meeting at Number 10 about drawing up a regulatory framework, and the German government has recognised it as "private money". The US government has subpoenaed large exchanges to get an idea of what kind of tax evasion might be happening, and those exchanges haven't really resisted. Some of them have actually started doing what most other industries do, and started sending lobbyists to Washington DC.

Brian Patrick Eha at the New Yorker asked the question "Could the Silk Road closure be good for Bitcoin?" two days after the arrest of Ulbricht, before it became clear that Bitcoin's price had, at least, been unaffected. He quotes Adam Levine, the editor-in-chief of the Let's Talk Bitcoin! podcast:

It seems inevitable that regulation will be a part of mainstream legitimacy for Bitcoin," Levine said. "The thought is, even if it changes it for the worse a little bit, it will gain much more in legitimacy.

That’s going to worry a lot of the people who built Bitcoin up to where it is now, but could be the price it pays for actually fulfilling some of its hyped potential.

A Bitcoin keychain. Photo: BTC Keychain/Flickr

Ian Steadman is a staff science and technology writer at the New Statesman. He is on Twitter as @iansteadman.

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Levi Bellfield, Milly Dowler and the story of men’s violence against women and girls

Before she was so inextricably connected to the phone hacking scandal, Milly Dowler was one of many women maimed and killed by a violent man.

The name Milly Dowler has meant phone hacking since July 2011. The month before that, Levi Bellfield (already imprisoned for the murders of Marsha McDonnell and Amelie Delagrange, and the attempted murder of Kate Sheedy) had been convicted of killing her, nine years after her death. But almost immediately, she became the centrepiece of Nick Davies’s investigations into Fleet Street “dark arts”, when it was revealed that News of the World journalists had accessed her voicemail during the search for her.

Suddenly her peers were not McDonnell, Delagrange and Sheedy, but Hugh Grant, Leslie Ash, Sadie Frost, Jude Law. People she could only have known from TV, now her neighbours in newsprint. Victims of a common crime. She had attained a kind of awful fame, and remains much better known than McDonnell, Delagrange and Sheedy.

There is a reason for that: with Milly Dowler, there was hope of finding her alive. Weeks of it, the awful hope of not knowing, the dull months of probability weighing down, until finally, in September 2002, the body. McDonnell, Delagrange and Sheedy were attacked in public places and found before they were missed. It is not such an interesting story as the schoolgirl who vanishes from a street in daylight. Once there were some women, who were killed and maimed by a man. The end.

Even now that Bellfield has confessed to kidnapping, raping and killing Milly, it seems that some people would like to tell any story other than the one about the man who kidnaps, rapes, kills and maims girls and women. There is speculation about what could have made him the kind of monster he is. There must be some cause, and maybe that cause is female.

Detective Chief Inspector Colin Sutton (who worked on the McDonnell and Delagrange murders) has said insinuatingly that Bellfield “dotes on his mother and her on him. It's a troubling relationship.” But it was not Bellfield’s mother who kidnapped, raped, killed and maimed girls and women, of course. He did that, on his own, although he is not the first male killer to be extended the courtesy of blaming his female relatives.

Coverage of the Yorkshire Ripper accused his wife Sonia of driving him to murder. “I think when Sutcliffe attacked his 20 victims, he was attacking his wife 20 times in his head,” said a detective quoted in the Mirror, as if the crimes were not Sutcliffe’s responsibility but Sonia’s for dodging the violence properly due to her. Lady Lucan has been successfully cast by Lucan’s friends as “a nightmare” in order to foster sympathy for him – even though he systematically tried to drive her mad before he tried to kill her, and did kill their children’s nanny, Sandra Rivett. Cherchez la femme. Cherchez la mom.

I know little about Bellfield’s relationship with his mother, but one of his exes spoke about him earlier this year. Jo Colling told how he had terrorised her while they were together, and stalked her after she left. “When I knew he was with another woman and not coming home it was a relief, but now I know what he was capable of, I feel guilty,” she said. “I did get an injunction against him, but it only made him even angrier.”

Colling fears that she could have prevented Bellfield’s murders by going to the police with her suspicions earlier; but since the police couldn’t even protect her, it is hard to see what difference this could have made, besides exposing herself further to Bellfield’s rage. Once there was a woman who was raped, beaten and stalked by the man she lived with. The end. This is a dull story too: Colling’s victimisation is only considered worth telling because the man who victimised her also killed Milly Dowler. Apparently the torture of a woman is only really notable when the man who does it has committed an even more newsworthy crime.

Throughout his engagements with the legal system, Bellfield seems to have contrived to inflate his own importance. Excruciatingly, he withheld his confession to murdering Milly until last year, leaving her family in an agony of unknowing – and then drew the process out even further by implicating an accomplice, who turned out to have nothing at all to do with the crime. He appears to have made the performance into another way to exercise control over women, insisting that he would only speak to female officers about what he did to Milly.

It is good that there are answers for the Dowler family; it is terrible that getting them let Bellfield play at one more round of coercions. And for the rest of us, what does this new information tell us that shouldn’t already be obvious? The story of men’s violence against girls and women is too routine to catch our attention most of the time. One woman killed by a man every 2.9 days in the UK. 88,106 sexual offences in a year.

Once there were some girls and women, who were tortured, stalked, kidnapped, raped, killed and maimed by a man. Dowler, McDonnell, Delagrange, Sheedy, Colling. More, if new investigations lead to new convictions, as police think likely. All those girls and women, all victims of Levi Bellfield, all victims of a common crime that will not end until we pull the pieces together, and realise that the torture, the stalking, the kidnaps, the rapes, the killing and the maiming – all of them are connected by the same vicious logic of gender. Then, and only then, will be able to tell a different story. Then we will have a beginning.

Sarah Ditum is a journalist who writes regularly for the Guardian, New Statesman and others. Her website is here.