From: Rabid Wombat <wombat@mcfeely.bsfs.org>
Date: Sun, 10 Nov 1996 14:49:13 -0800 (PST)
To: Clay Olbon II <clay.olbon@dynetics.com>
Subject: Re: Pyramid schemes and cryptoanarchy
In-Reply-To: <1.5.4.32.19961110162356.00a10f10@ix.netcom.com>
Message-ID: <Pine.BSF.3.91.961110162701.1130A-100000@mcfeely.bsfs.org>
MIME-Version: 1.0
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On Sun, 10 Nov 1996, Clay Olbon II wrote:

> Pyramid schemes could be a growth market in a crypto-anarchic world.  It is
> yet another market such as gambling, or the lottery, that could be conducted
> with anonymity.  And it appears to be much more widespread on the internet

How is it like gambling? If I get a pyramid letter instructing me to send 
money to five people on the list, add my name to the bottom, send to 5 
people, or whatever, there's nothing stopping me from removing all the 
names, adding my name and those of four friends, and passing the letter 
along. With an anonymous system, I could easily be all five people, 
without even the bother of getting five different post office boxes.

There's no gambling involved; only blantant stupidity.

The "airplane" game was an interesting slant, though. Because of the 
in-person "airplane" parties, people were able to make contacts and 
network while participating. It was still the same old trick, but some 
may have found the ability to "buy" (and "sell") face time worth the price 
of admission (Some of the "airplane" games going around were to the tune 
of $2500, rather than the usual $5). Your anonymous slant on 
this removes the only economically viable excuse for participating, 
though - I don't even get to meet the head of the umptysquat dept. in 
return for getting fleeced.

The "airplane game" was big around Washington about a year ago, and
involved a number of highly placed people who aught to have been able to 
recognize a Ponzi scheme when it bit them in the ass. Makes me wonder how 
many people are stupid enough to "play" these games. 


-r.w.