I believe psy is referring to narcotics consumption decriminalization in our country, it led to less addiction/consumption and higher price.
As a matter of fact I'm talking about The Netherlands and Portugal. Weed bought to a street dealer in any of the 2 countries costs half-price or less of what it costs in a dutch coffeshop.
Illegal != Expensive
I guess people like 420 prefer to believe urban myths than life experience...
I disagree psy. As you probably learned from history any prohibition raised those goods prices on the black markets. Bitcoin is no different than a digital good, people want it and would pay a premium to get it in case it was made illegal. We're getting into human nature here.
Of course you will have higher prices in dutch coffeeshops than street because of taxes. You would see way higher prices on the streets for drugs with the same daily production, and demand, bitcoin has. Do you think bitcoin black market will be identical to marihuana's which everybody can grow in their back yards?