How can the state levy taxation on that which they do not issue and cannot control?

The ability to create something that is not duplicable in the digital world has enormous value.

The greatest benefit of these hidden services however, comes not on a micro level between users, but on the aggregate ability to undercut and distribute the profitability of the drug industry which is artificially sustained by laws forbidding its proliferation - which, to a large extent, are failing miserably to begin with.