The need for outside investment in the first place is inflated by artifical barriers to entry into the market.
As the barriers to entry increase the value proposition of using technology to bypass them also increases.
It starts with drugs because that's where the incentives are highest, but given enough time and opportunity the patent trolls and other rent seekers will make it profitable to move more businesses into the darknet as well.
Posted Sep 18, 2012 21:55 UTC (Tue) by jackb (subscriber, #41909)
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This isn't specific to the software industry - it's part of a larger trend in the overall economy.
Rackspace sued for hosting GitHub
Posted Sep 19, 2012 0:16 UTC (Wed) by khim (subscriber, #9252)
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As I've said: black market always existed and will always exist. It does not mean government will tolerate it. Well, some governments do, but they don't last long.
The problem with so-called “System D” is that it's much, much, much less efficient other approaches. In a world where software must be developed in a darknet not a lot of software will be produced. Take the article you are linking to. "Lagos is a city for hustling," he told me. "If you have an idea and you are serious and willing to work, you can make money here. I believe the future is bright." Wow. The power of “System D”! The world where people steal from legal oil-based economy, waste 90% of resources in the process and still have something to live with. The only problem: all that works only where there are normal economy to plunder.
If you want to look on the final of the “System D” triumph then take a look on Baltic states. As long as they had the ability to pillage transit they showed excellent promises. When the "legal economy" contracted “System D” went nowhere as well.