But the competitive advantage of druglords is controlling the means of distribution, not the means of cultivation. So, SilkRoad could help bypass those monopolized distribution channels and undermine the druglord's competitive advantage.

For example, if a druglord is competing directly with a mom-and-pop drug cultivator on SilkRoad -- the drug lord has higher costs (bribery, paramilitary force, etc.) and only marginally lower COGS from scale. Because they are unable to intimidate or kill other cultivators, like they do in meat space, the druglord could be at a real disadvantage.