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Re: Digicash will not fly (not)

At 5:41 AM 10/30/95, M. F. (Pat wrote:
>"James A. Donald" <[email protected] wrote:
>>While Chaum is a brilliant cryptographer, he is an incompetent businessman
>>He has demonstrated this in numerous ways.
>>The latest being "Cash" where the bank skims off 4% to 10% every time.
>>No one is going to use digicash under these kinds of terms and
>Doesn't just about everyone do precisely this when they pay sales tax?
>Every time a buck arrives or departs a hand one pays a tax yet the system
>(you and I)continues accepting these terms albeit painfully.

Many types of business dealings are exempt from sales tax, through
arrangements for resales.

I don't know if the "skims off 4% to 10% every time" point accurately
describes how the current Digicash model works, but certainly this will not
fly as a long term rate. So many monetary transactions happen in the course
of business that even a 4% fee _per transaction_ would rapidly wipe out
most of the value.

--Tim May

Views here are not the views of my Internet Service Provider or Government.
Timothy C. May              | Crypto Anarchy: encryption, digital money,
[email protected]  408-728-0152 | anonymous networks, digital pseudonyms, zero
Corralitos, CA              | knowledge, reputations, information markets,
Higher Power: 2^756839      | black markets, collapse of governments.
"National borders are just speed bumps on the information superhighway."