From: dlv@bwalk.dm.com (Dr.Dimitri Vulis KOTM)
Date: Mon, 11 Nov 1996 08:02:45 -0800 (PST)
To: cypherpunks@toad.com
Subject: Re: Pyramid Schemes
In-Reply-To: <Pine.LNX.3.94.961110211847.1766B-100000@kinch.ark.com>
Message-ID: <iVJ9wD33w165w@bwalk.dm.com>
MIME-Version: 1.0
Content-Type: text/plain


Dave Kinchlea <security@kinch.ark.com> writes:

> On Sun, 10 Nov 1996, Dr.Dimitri Vulis KOTM wrote:
> >
> > I think the following would be a worthwhile cypherpunks project: design the
> > anonymous infrastructure to allow those who wants to participate in MMF-like
> > pyramid schemes on the Internet to do so without bothering anyone.
>
> It seems to me that any such scheme is doomed to failure, unless I
> misunderstand what people are talking about here. While I believe that
> there really is a `sucker born every minute', and it is that which makes
> pyramid schemes work, I don't believe that too many people would jump on
> board unless they see real, verifiable names linked with the schemes.

Methinks, you underestimate the stupidity of the average American. :-)

> Isn't it just common sense to say that if people are hiding their identity
> while offering to `make money fast' then there is something seriously
> shady going on? Aren't people *less* likely to join in under such
> circumstances?  Sure, it allows such schemes to work in theory but in
> practice, how do you get people to join in? Who would/how could you
> *trust* such a scheme?

Well - I definitely would not trust such a scheme and wouldn't take part in it.
I suppose if a scheme like this were actually implemented, some people would
be dumb enough to take is seriously and lose some (digital) money; therefore
someone would gain whatever money they've lost, as it happens in all zero-sum
games. However I've been talking about designing a scheme, not implementing it.
If there are students on this mailing list in need of an interesting crypto
project, this is one good idea, IMO.

---

Dr.Dimitri Vulis KOTM
Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps