From: Clay Olbon II <clay.olbon@dynetics.com>
Date: Sun, 10 Nov 1996 08:25:14 -0800 (PST)
To: cypherpunks@toad.com
Subject: Pyramid schemes and cryptoanarchy
Message-ID: <1.5.4.32.19961110162356.00a10f10@ix.netcom.com>
MIME-Version: 1.0
Content-Type: text/plain


It seems that pyramid scheme spamming has increased of late (if that is
possible!).  In my lifetime, I can only remember a single snail-mail
instance of a pyramid scheme - over the net it is an entirely different
story (although the number of instances is probably proportional to the
number of lists I subsribe to).  With fully anonymous digital cash will come
the ability to develop untraceable pyramid schemes.  As a staunch believer
in the free market, I find laws against these schemes distasteful, quite
hypocrytical (i.e. Social Security), and soon to be unenforceable.

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
currently, even without anonymity.  And unlike gambling or the lottery, the
payoffs could increase greatly should anonymity be available.  

Now, what is the point of this discussion of pyramid schemes?  It is to
bring to light yet another area that will be untouchable by governments.
And I think that it will help continue the development and proliferation of
some of our pet projects, specifically fully anonymous digital cash and
remailers.  Remailer operators could even fund their operations through
pyramid schemes (directly, or indirectly through digital postage stamps).  I
am not, however, advocating spam. I simply see it as a natural extension of
current practice, that may actually provide tangible benefits in the near
future.  

Clay

*******************************************************
Clay Olbon			clay.olbon@dynetics.com
engineer, programmer, statistitian, etc.
Dynetics, Inc.
**********************************************tanstaafl