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Not the commenter you're replying to, but I have to add this. I'm sure there's been a lot of analysis done with regards to the actual amount of fraud on Silk R
by jmcqk6 9y ago
Not the commenter you're replying to, but I have to add this.
I'm sure there's been a lot of analysis done with regards to the actual amount of fraud on Silk Road (and it's various incarnations and similar services), right?
There's no way that criminals with even lower oversight behave better.
The idea that you could have an environment where you lack the fraud protections you have in other environments leads to lower fraud rates is absurd, and would require a lot of evidence to demonstrate. An appeal to reputation systems doesn't cut it.
- aianus 9y ago> There's no way that criminals with even lower oversight behave better. There are no bigger criminals with lower oversight than anonymous drug sellers on silk road, and yet most people did get their orders. That was my point. > The idea that you could have an environment where you lack the fraud protections you have in other environments leads to lower fraud rates is absurd It's not absurd at all. For example, if you are a legitimate gold seller and you accept credit cards orders with shipping addresses in Romania you will get destroyed by fraud from buyers. An alternate system where payments are made in Bitcoin results in zero buyer fraud and a reputation system a la Silk Road (plus the ability to sue the non-anonymous seller in court) can reduce the potential for seller fraud to a point where it's worth taking the risk to save X% on the price of your gold.