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The strange thing is they actually built a full-size "working" demo, which if anything, only reinforces how precarious and ill-advised the whole concept was to

The strange thing is they actually built a full-size "working" demo, which if anything, only reinforces how precarious and ill-advised the whole concept was to begin with. It makes me wonder if it wasn't a scam at all, but just a really bad idea with believers that wanted to make it real?

api 9y ago
The line between folly and scam is not absolutely sharp. It's like murder. There's first degree premeditated murder, crimes of passion, insanity, and manslaughter. Manslaughter can in some cases be charged for gross negligence, or the death can occur as a result of another crime where murder was not the intent. Scams can be similar. A pure scam is like first degree murder. The scammer(s) plan it as a scam and execute it with intent. But sometimes a failure or misadventure can evolve into a scam. This happens when those behind it double down in the face of clear evidence of total non-viability. When the tech doesn't work for fundamental reasons, nobody is truly interested, etc., but the operators keep ratcheting up the salesmanship and doubling down, they are heading into scam territory. You see this a lot with quack medicines backed by people with actual medical degrees. Sometimes a doctor or researcher comes up with an idea and then their ego gets into it. They start fantasizing about being the greatest genius in medicine, the person who cured cancer, etc. So even when the data comes in and shows that their treatment doesn't work any better than placebo they refuse to "see" this. Their ego won't let them and they delude themselves. Over time they devolve much like Walter White from Breaking Bad, going from legitimate doctor to quack. It's rarely a sudden thing.
- mikeash 9y ago
  Great point. For example, Ponzi's original scheme was a real if somewhat abusive scheme involving arbitrage of international postage coupons. It wasn't until he realized that it was impossible to carry out this arbitrage on the required scale that it turned into a scam.
- astrodust 9y ago
  The line is super blurry. Some inventors seeking capital for their borderline idea may team up with investors that are anything but honest. One unfortunate compromise after another turns a dubious idea into an out-right scam. Your idea for the next breakthrough technology might be the very thing some parasite "angel investor" is looking for to be the crystal at the core of their next big scam. Watch who you team up with.

api 9y ago

The line between folly and scam is not absolutely sharp. It's like murder. There's first degree premeditated murder, crimes of passion, insanity, and manslaughter. Manslaughter can in some cases be charged for gross negligence, or the death can occur as a result of another crime where murder was not the intent. Scams can be similar. A pure scam is like first degree murder. The scammer(s) plan it as a scam and execute it with intent. But sometimes a failure or misadventure can evolve into a scam. This happens when those behind it double down in the face of clear evidence of total non-viability. When the tech doesn't work for fundamental reasons, nobody is truly interested, etc., but the operators keep ratcheting up the salesmanship and doubling down, they are heading into scam territory. You see this a lot with quack medicines backed by people with actual medical degrees. Sometimes a doctor or researcher comes up with an idea and then their ego gets into it. They start fantasizing about being the greatest genius in medicine, the person who cured cancer, etc. So even when the data comes in and shows that their treatment doesn't work any better than placebo they refuse to "see" this. Their ego won't let them and they delude themselves. Over time they devolve much like Walter White from Breaking Bad, going from legitimate doctor to quack. It's rarely a sudden thing.

mikeash 9y ago
Great point. For example, Ponzi's original scheme was a real if somewhat abusive scheme involving arbitrage of international postage coupons. It wasn't until he realized that it was impossible to carry out this arbitrage on the required scale that it turned into a scam.
astrodust 9y ago
The line is super blurry. Some inventors seeking capital for their borderline idea may team up with investors that are anything but honest. One unfortunate compromise after another turns a dubious idea into an out-right scam. Your idea for the next breakthrough technology might be the very thing some parasite "angel investor" is looking for to be the crystal at the core of their next big scam. Watch who you team up with.