The RISKS Digest
Volume 33 Issue 43

Sunday, 4th September 2022

Forum on Risks to the Public in Computers and Related Systems

ACM Committee on Computers and Public Policy, Peter G. Neumann, moderator

Please try the URL privacy information feature enabled by clicking the flashlight icon above. This will reveal two icons after each link the body of the digest. The shield takes you to a breakdown of Terms of Service for the site - however only a small number of sites are covered at the moment. The flashlight take you to an analysis of the various trackers etc. that the linked site delivers. Please let the website maintainer know if you find this useful or not. As a RISKS reader, you will probably not be surprised by what is revealed…

Contents

Australian aviation watchdog's report on death of American firefighters
SMH-AU
High Seas Deception: How Shady Ships Use GPS to Evade International Law
NYTimes
Amazon Solar Array Fires
Henry Baker
U.S. Freight Rail Crisis Threatens More Supply-Chain Chaos
WiReD
Email scammers bilked VCU out of nearly $470,000,U.S. officials say
WashPost
Tech tool offers police *mass surveillance on a budget*
AP News
FBI Warns Individuals Employed in the Healthcare Industry of the Ongoing Scam Involving the Impersonation of Law Enforcement and Government Officials
FBI
Electricity company controls customers' thermostat settings during a warm day in Denver.
The Denver Channel
Hand-counting elections riskier than computer counts?
CNN
Voting Machine Tampering Points to Concern for Fall Election
AP
A neighborhood's cryptocurrency mine: Never-ending noise
WashPost
LastPass, Password Manager with Millions of Users, Is Hacked
WSJ
Face Recognition Struggles to Recognize Us After Five Years
Matthew Sparkes
Quantum AI Breakthrough: Theorem Shrinks Appetite for Training Data
LANL
Why the Twilio Breach Cuts So Deep
WiReD
Inside a Million-Dollar Instagram Verification Scheme
ProPublica
Facebook Misinformation Is Bad Enough. The Metaverse Will Be Worse
RAND
The FTC may—finally—protect Americans from data brokers
WiReD
Storing data on floppy disks? Japan tells bureaucracy time to stop
Nikkei
Satellites Keep the World's Clocks on Time. What if They Fail
WiReD
Honda Clocks Are Stuck 20 Years In The Past; There Isn't A Fix
Gabe Goldberg
Ukraine celebrates its Independence Day hacking Russian cameras
twitter
The Family That Mined the Pentagon's Data for Profit
WiReD
Re: 3D gun printing operation busted in Calgary
Steve Bacher
Re: A Dad Took Photos of His Naked Toddler for the Doctor. Google Flagged Him as a Criminal.
Amos Shapir
Re: Why are Tesla fanatics putting their children in the path of moving cars?
John Levine
Re: The Crypto[currency] World Can't Wait for Ethereum's Merge,
Martin Ward
Info on RISKS (comp.risks)

Australian aviation watchdog's report on death of American firefighters (SMH-AU)

John Colville <John.Colville@uts.edu.au>
Mon, 29 Aug 2022 20:58:33 +0000
Three American firefighters whose aircraft crashed while they were fighting
the [Australian] Black Summer bushfires were not given the appropriate
information about the difficult conditions and were without aerial
supervision, a report from the aviation watchdog has found.

https://www.smh.com.au/environment/weather/us-pilots-killed-in-plane-crash-unaware-of-terrible-fire-conditions-20220829-p5bdmj.html

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High Seas Deception: How Shady Ships Use GPS to Evade International Law (NYTimes)

Monty Solomon <monty@roscom.com>
Sat, 3 Sep 2022 09:47:27 -0400
A technology enabling the transmission of fake locations to carry out murky
or even illegal business operations could have profound implications for the
enforcement of international law.

https://www.nytimes.com/2022/09/03/world/americas/high-seas-deception-how-shady-ships-use-gps-to-evade-international-law.html

 [Jan Wolitsky noted that this is
   Somewhat misleading, as the technology involved doesn't involve altering
   any GPS signals, but rather the AIS (Automatic Identification Systems)
   signal, which uses GPS to transmit position information.  The "similar
   satellite transponder" used by aircraft, mentioned but unnamed in the
   article, is ADS-B (Automatic Dependent Surveillance Broadcast).
 PGN]


Amazon Solar Array Fires

Henry Baker <hbaker1@pipeline.com>
Fri, 02 Sep 2022 15:07:38 +0000
The large flat rooftops on Amazon warehouses would seem to be ideal
locations for solar panel arrays. Indeed, Amazon has installed a significant
amount of PV capacity on their warehouses. However, poor design and/or poor
maintenance has resulted in a number of fires in these panel arrays.

While Amazon has not disclosed details of the PV systems involved in these
fires, we can hazard (!) a guess.

There are several major risks associated with solar panel arrays, mainly due
to the *direct current* (DC) coupling found in most older PV arrays.

DC-coupled PV panels are typically series-connected with voltages
up to 600V or more—roughly the same voltage found in the "third
rail" of subway train systems, so *electrocution risk* is quite high.

DC-coupled PV panel strings run at 10 amps or more, providing a
rough equivalent to a low-grade *arc welding* system. This high
amperage, plus the high DC voltage, means that once an arc starts,
it may continue even after the conductor melts away and increases the
size of the arc gap.

Hail and other damage to PV arrays can thus later result in arcs and
fires.

Many of these risks can be reduced through the use of AC-coupled PV panels
which incorporate so-called 'microinverters' which convert DC to AC within
each individual PV panel.

https://www.fluke.com/en-us/learn/blog/renewable-energy/solar-power-safety

 - - -  ALSO:

https://www.acsolarwarehouse.com/news/are-your-solar-systems-safe/

Amazon took all U.S. solar rooftops offline last year after flurry of fires,
electrical explosions

"Between April 2020 and June 2021, solar panels atop Amazon fulfillment
centers caught fire or experienced electrical explosions at least six
different times."

"Some 220 solar panels and other equipment at the facility, known as FAT1,
were damaged by the three-alarm fire, which was caused by "an undetermined
electrical event within the solar system mounted on top of the roof," Leland
Wilding, Fresno's fire investigator, wrote in an incident report."

"The documents, which have never been made public, indicate that between
April 2020 and June 2021, Amazon experienced "critical fire or arc flash
events" in at least six of its 47 North American sites with solar
installations, affecting 12.7% of such facilities. Arc flashes are a kind of
electrical explosion."


U.S. Freight Rail Crisis Threatens More Supply-Chain Chaos (WiReD)

Gabe Goldberg <gabe@gabegold.com>
Tue, 30 Aug 2022 20:29:06 -0400
Federal regulators and the White House have been scrambling to prevent poor
service and a possible strike from jamming up a vital but often overlooked
network.

US freight railroads cut staff in recent years as part of a shift toward a
leaner and more profitable operating model dubbed Precision Scheduled
Railroading (PSR). It was invented by a Canadian railroad executive and
later replicated in the US, with the intention of simplifying a complex rail
network by running fewer, longer trains, replacing single-commodity trains
with mixed freight, and slashing labor. US freight trains grew 25 percent in
length between 2008 and 2017 and now sometimes reach 3 miles long. And while
the profits materialized, the promised service improvements have not always
followed.


Email scammers bilked VCU out of nearly $470,000,U.S. officials say (WashPost)

Gabe Goldberg <gabe@gabegold.com>
Thu, 1 Sep 2022 15:27:10 -0400
The scammers used a fake email account to send phony billing requests to
Virginia Commonwealth University, authorities allege.

Prosecutors said Egbinola controlled an email account that sent phony
billing requests to Virginia Commonwealth University on behalf of Kjellstrom
and Lee, a construction company that had been doing contract work for the
university in Richmond.

The emails from "Rachel Moore" in fact came from an impostor account
mimicking the construction company's real domain name, according to
prosecutors. After communicating with Moore over several months, VCU
officials wired almost $470,000 in December 2018 to a bank account that
U.S. officials said was controlled by Egbinola's associates.

https://www.washingtonpost.com/dc-md-va/2022/08/11/vcu-email-scam-extradition/


Tech tool offers police *mass surveillance on a budget* (AP News)

Monty Solomon <monty@roscom.com>
Sat, 3 Sep 2022 09:25:53 -0400
Local law enforcement agencies from suburban Southern California to rural
North Carolina have been using an obscure cellphone tracking tool, at times
without search warrants, that gives them the power to follow people's
movements months back in time, according to public records and internal
emails obtained by The Associated Press.

Police have used Fog Reveal to search hundreds of billions of records from
250 million mobile devices, and harnessed the data to create location
analyses known among law enforcement as *patterns of life*, according to
thousands of pages of records about the company.  [...]

https://apnews.com/article/technology-police-government-surveillance-d395409ef5a8c6c3f6cdab5b1d0e27ef


FBI Warns Individuals Employed in the Healthcare Industry of the Ongoing Scam Involving the Impersonation of Law Enforcement and Government

Gabe Goldberg <gabe@gabegold.com>
Thu, 1 Sep 2022 15:28:46 -0400
BALTIMORE—he FBI is warning individuals employed in the healthcare
industry of ongoing widespread fraud schemes in which scammers impersonate
law enforcement or government officials in attempts to extort money or steal
personally identifiable information (PII).

Scammers, as part of a large criminal network, research background
information of their intended targets through a medical practice's website
and/or social media and supplement this information with information found
on common social media websites such as Facebook, Instagram, LinkedIn, etc.,
to make themselves appear legitimate.

Scammers will often spoof authentic phone numbers and names and use fake
credentials of well-known government and law enforcement agencies to notify
the intended target they were subpoenaed to provide expert witness testimony
in a criminal or civil court case. The health care professional is notified
since they did not appear in court, they are in violation of the subpoena,
have been held in contempt, and an arrest warrant has been issued for them.

The targeted victim is told if they pay a court fine, they will no longer be
held in contempt. Scammers use an urgent and aggressive tone coupled with
scare tactics that claim the target victim is currently under surveillance
and an arrest warrant will involve an early morning police raid. The
intended victim is warned non-compliance will result in their medical
license being revoked.

Payment is demanded in various forms, with the most prevalent being prepaid
cards, wire transfers, and cash, sent by mail or inserted into
cryptocurrency ATMs. Victims are asked to read prepaid card numbers over the
phone or text a picture of the card. Mailed cash will be hidden or packaged
to avoid detection by normal mail scanning devices. Wire transfers are often
sent overseas and at times in person cash payments or drop offs are
completed.

If victims make money payments, a new reason to send additional funds is
used, such as additional court costs for having to continue the court
hearing. Often the scammers will change tactics and impersonate law
enforcement officers stating their victim has been identified as a
participant of a scam and are currently under investigation for their part
in sending money to the criminals. They are then told another payment will
exonerate them from their part of the scam.

https://www.fbi.gov/contact-us/field-offices/baltimore/news/press-releases/fbi-warns-individuals-employed-in-the-healthcare-industry-of-the-ongoing-scam-involving-the-impersonation-of-law-enforcement-and-government-officials

  Hard to believe this works.


Electricity company controls customers' thermostat settings during a warm day in Denver. (The Denver Channel)

Jay Elston <jay.p.elston@gmail.com>
Thu, 1 Sep 2022 11:33:19 -0700
According to KGMH-TV, some 22,000 customers (who voluntarily enrolled in
the AC Rewards program offered by their electricity company) had their
enrolled "Smart" (IOT enabled) AC thermostats locked at 79 F (~26C) due to
an "energy emergency" when the temperature in Denver approached 90F (32C).

This program is voluntary (for now).

KGMH-TV report:
https://www.thedenverchannel.com/news/contact-denver7/thousands-of-xcel-customers-locked-out-of-thermostats-during-energy-emergency

Details of Xcel Energy's AC Reward program:
https://co.my.xcelenergy.com/s/residential/heating-cooling/ac-rewards


Hand-counting elections riskier than computer counts? (CNN)

Paul Burke <box1320@gmail.com>
Sat, 3 Sep 2022 17:45:27 -0700
The US is seeing a growing liberal hostility to checking election results.
CNN and ACLU say that counting votes twice, by hand and by computer, is more
risky than counting just by computer. This may surprise many states which
use hand counts to check computer counts and many countries which just count
by hand. The Nevada ACLU director says the hand count "is going to give them
the opportunity to tamper with an election," as if computers are immune from
tampering. Election staff have always been partisan, and are constrained by
bipartisan procedures and public observation, which are easy to provide for
hand counts.

https://www.cnn.com/videos/politics/2022/08/31/election-deniers-nevada-gop-elections-ballot-counting-republicans-nye-county-lah-lead-vpx.cnn


Voting Machine Tampering Points to Concern for Fall Election (AP)

ACM TechNews <technews-editor@acm.org>
Mon, 29 Aug 2022 12:20:50 -0400 (EDT)
hristina A. Cassidy and Colleen Slevin, Associated Press, 25 Aug 2022,
via ACM TechNews, 29 Aug 2022

Election officials and security experts in the U.S. are concerned that
conspiracy theories related to the 2020 presidential election could
encourage interference with, or even attempts to sabotage, voting machines
during this fall's elections. Such concerns were highlighted on the last day
of voting in the Pueblo County, CO, June primary, when a poll worker found
an error message on a voting machine's screen. Election officials can take
measures to ensure unauthorized devices don't infect voting equipment, by
for example, configuring systems to recognize only proprietary devices. In
the Pueblo County case, the tamper-evident seal on the voting machine
appeared to be disturbed. The case remains under investigation.

https://orange.hosting.lsoft.com/trk/click?ref=znwrbbrs9_6-2f1c9x23590ax069928&


A neighborhood's cryptocurrency mine: Never-ending noise (WashPost)

Gabe Goldberg <gabe@gabegold.com>
Fri, 2 Sep 2022 14:34:20 -0400
Cryptocurrency mining brought constant noise to this remote part of
Appalachia

https://www.washingtonpost.com/business/interactive/2022/cryptocurrency-mine-noise-homes-nc


LastPass, Password Manager with Millions of Users, Is Hacked (WSJ)

ACM TechNews <technews-editor@acm.org>
Mon, 29 Aug 2022 12:20:50 -0400 (EDT)
Alyssa Lukpat, *The Wall Street Journal*, 26 Aug 2022
via ACM TechNews, 29 Aug 2022

On Aug. 25, online password manager LastPass reported the theft of some of
its source code and proprietary information, but said there is no evidence
customer information from its more than 33 million users or encrypted
password vaults were accessed. LastPass' Karim Toubba said a developer
account had been breached, allowing an unauthorized party to access the
company's development environment. The unusual activity was detected two
weeks ago, prompting an investigation. Toubba said the company is working
with a cybersecurity and forensics firm and has rolled out additional
security measures. LastPass stores encrypted login information that users
can access online with a master password, but they cannot see customers'
data.

https://orange.hosting.lsoft.com/trk/click?ref=znwrbbrs9_6-2f1c9x235913x069928&


Face Recognition Struggles to Recognize Us After Five Years

ACM TechNews <technews-editor@acm.org>
Mon, 29 Aug 2022 12:20:50 -0400 (EDT)
Matthew Sparkes, New Scientistm 24 Aug 2022,
via ACM TechNews, 29 Aug 2022

A test designed by the Norwegian University of Science and Technology's
Marcel Grimmer and colleagues found that facial recognition algorithms start
running into difficulty identifying people after they have aged five years.
The researchers used open-source alternatives to face recognition tools used
by police and smartphone manufacturers, as well as AI-generated images of
50,000 humans aged synthetically. Grimmer said the tools' accuracy declined
continuously from the point the reference image was captured. The algorithms
used to age faces synthetically from reference images also proved more
effective when the target was between 20 and 40 years, compared to children
and older adults. The implication is that new photos may be needed more
often to maintain accuracy and security.

https://orange.hosting.lsoft.com/trk/click?ref=znwrbbrs9_6-2f1c9x23590cx069928&


Quantum AI Breakthrough: Theorem Shrinks Appetite for Training Data (LANL)

ACM TechNews <technews-editor@acm.org>
Mon, 29 Aug 2022 12:20:50 -0400 (EDT)
Los Alamos National Laboratory, 23 Aug 2022, via ACM TechNews, 29 Aug 2022

A proof devised by a multi-institutional team of scientists demonstrates
that quantum neural networks can train on minimal data. "The need for large
datasets could have been a roadblock to quantum AI, but our work removes
this roadblock," said Patrick Coles at the U.S. Department of Energy's Los
Alamos National Laboratory (LANL). Coles said quantum AI training occurs in
a mathematical construct called a Hilbert space, and the theorem shows that
navigating this space requires only as many data points as the number of
parameters in a given model. The researchers could ensure that a quantum
model can be compiled in far fewer computational gates relative to the
volume of data. LANL's Marco Cerezo said, "We can compile certain very large
quantum operations within minutes with very few training points—something
that was not previously possible."

https://orange.hosting.lsoft.com/trk/click?ref=znwrbbrs9_6-2f1c9x23590bx069928&

  [This makes no sense at all in the real world.  This proof seems to assume
  (among other things) that the model is absolutely correct with respect to
  even the most stringent unstated assumptions, and that the parameters are
  well defined.  Who is proving that those assumptions hold?  I suppose the
  next proof will be that Quantum Computing requires NO TRAINING WHATSOEVER
  irrespective of the quantumware and the software, under ill-defined or
  undefined assumptions.  PGN]


Why the Twilio Breach Cuts So Deep (WiReD)

Gabe Goldberg <gabe@gabegold.com>
Tue, 30 Aug 2022 00:40:58 -0400
The phishing attack on the SMS giant exposes the dangers of B2B companies to
the entire tech ecosystem.

The communication company Twilio suffered a breach at the beginning of
August that it says impacted 163 of its customer organizations. Out of
Twilio's 270,000 clients, 0.06 percent might seem trivial, but the company's
particular role in the digital ecosystem means that that fractional slice of
victims had an outsized value and influence. The secure messaging app
Signal, two-factor authentication app Authy, and authentication firm Okta
are all Twilio customers that were secondary victims of the breach.

https://www.wired.com/story/twilio-breach-phishing-supply-chain-attacks


Inside a Million-Dollar Instagram Verification Scheme (ProPublica)

Gabe Goldberg <gabe@gabegold.com>
Wed, 31 Aug 2022 13:43:39 -0400
Real Money, Fake Musicians: Inside a Million-Dollar Instagram Verification
Scheme

A jeweler. A plastic surgeon. An OnlyFans Model. They and others received a
blue check in likely the biggest Instagram verification scheme revealed to
date. After ProPublica started asking questions, Meta removed badges from
over 300 accounts.

To his more than 150,000 followers on Instagram, Dr. Martin Jugenburg is
Real Dr. 6ix, a well-coiffed Toronto plastic surgeon posting images and
video of his work sculpting the decolletage, tucking the tummies and lifting
the faces of his primarily female clientele.

Jugenburg's physician-influencer tendencies led to a six-month suspension of
his Ontario medical license in 2021 after he admitted to filming patient
interactions and sharing images of procedures without consent.  He
apologized for the lapse and is currently facing a class-action lawsuit from
female patients who say their privacy was violated.

But on Spotify, Apple Music and Deezer, and in roughly a dozen sponsored
posts scattered across the web, Jugenburg's career and controversial history
was eclipsed by a new identity. On those platforms, he was DJ Dr. 6ix, a
house music producer who is celebrated for his inherent instinctual ability
for music composition assures his followers that his music is absolutely
unique.

https://www.propublica.org/article/instagram-spotify-verified-fake-musicians

People being influenced by "influencers" who pay for being badged as
credible.  What could go wrong?


Facebook Misinformation Is Bad Enough. The Metaverse Will Be Worse (RAND)

Tom Van Vleck <thvv@multicians.org>
Sun, 28 Aug 2022 11:54:13 -0400
https://www.rand.org/blog/2022/08/facebook-misinformation-is-bad-enough-the-metaverse.html

  [You never MetaVerse you didn't like—until now?  Was ist Werse? (Ger.)


The FTC may—finally—protect Americans from data brokers (WiReD)

Gabe Goldberg <gabe@gabegold.com>
Wed, 31 Aug 2022 20:31:50 -0400
The agency's lawsuit against Kochava should squash the industry's core
defense—and help keep sensitive info off the open market.

https://www.wired.com/story/the-ftc-may-finally-protect-americans-from-data-brokers


Storing data on floppy disks? Japan tells bureaucracy time to stop (Nikkei Asia via Dave Farber)

Peter Neumann <neumann@csl.sri.com>
Tue, 30 Aug 2022 19:01:10 PDT
https://asia.nikkei.com/Business/Technology/Storing-data-on-floppy-disks-Japan-tells-bureaucracy-time-to-stop


Satellites Keep the World's Clocks on Time. What if They Fail (WiReD)

Gabe Goldberg <gabe@gabegold.com>
Sun, 28 Aug 2022 20:35:46 -0400
Standardized time is broadcast by satellite networks around the world, but
their signals are vulnerable to interference --tso he UK is building a more
resilient system.

https://www.wired.com/story/satellite-time-distribution


Honda Clocks Are Stuck 20 Years In The Past; There Isn't A Fix

Gabe Goldberg <gabe@gabegold.com>
Sun, 28 Aug 2022 00:13:38 -0400
Dated 1/6/22—this explains a lot... why my car's clock was wrong from
start of Daylight Savings Time to yesterday!

The Jalopnik inbox has been lit up with a number of reports about clocks and
calendars in Honda cars getting stuck at a certain time in the year 2002.
The spread is impressive, impacting Honda and Acura models as old as 2004
and as new as 2012. Here's what might be happening.  [...]

The issue is widespread, hitting a huge number of cars in Acura's and
Honda's lineup with navigation systems. And it's not just in the United
States, as owners in Canada and even as far as the United Kingdom have all
reported similar issues.


Ukraine celebrates its Independence Day hacking Russian cameras (twitter)

geoff goodfellow <geoff@iconia.com>
Sat, 27 Aug 2022 19:46:30 -0700
*Today, to celebrate Ukraine's Independence Day, dozens of IP cameras with
speaker outputs have been hacked to play patriotic music in Russia as well
as occupied Crimea and Donbas...

https://twitter.com/ItsArtoir/status/1562440263330476032


The Family That Mined the Pentagon's Data for Profit (WiReD)

Gabe Goldberg <gabe@gabegold.com>
Sun, 28 Aug 2022 21:00:05 -0400
The Freedom of Information Act helps Americans learn what the government is
up to. The Poseys exploited itâand became unlikely defenders of
transparency.

The Poseys' lawsuits may have helped rein in the government's tendency to
hoard information, but the family hardly makes for a set of uncomplicated
FOIA heroes. George Posey was the first person and one of only a handful
ever to be convicted of violating the US Comprehensive Anti-Apartheid Act,
and [son] Mac has pleaded guilty to conspiracy and receiving stolen
government property.

https://www.wired.com/story/pentagon-data-profit-freedom-information-of-information-act


Re: 3D gun printing operation busted in Calgary (RISKS-33.42)

Steve Bacher <sebmb1@verizon.net>
Mon, 29 Aug 2022 13:36:45 -0700
So, I understand that printing 3D guns is illegal in Canada and probably
ought to be in other countries, but think about this, at least from a USA
standpoint:

It is not illegal, in general, to manufacture guns here. In fact, it iss a
profitable business for many companies. So if someone were to start a
business manufacturing guns using 3D printer technology, would that be a
legitimate business? If they were manufacturing, say, gardening tools using
3D printer technology, that would certainly be unobjectionable.

I suppose it's analogous to the distinction between liquor distributors and
the folks who brew at home in their basements.  But is it designed to
protect the general public or the interests of the established businesses?


Re: A Dad Took Photos of His Naked Toddler for the Doctor. Google Flagged Him as a Criminal. (RISKS-33.42)

Amos Shapir <amos083@gmail.com>
Mon, 29 Aug 2022 11:30:22 +0300
This case shows that the power of Google over our lives has become so great
that it requires some supervision, the same kind that applies (or should
apply, anyway) to electric companies:

Can an electric company disconnect a client without warning?  If they employ
a protocol to report a client to the authorities, which may cause
disconnection, do they also have to employ a protocol to reconnect, if
authorities determine that no offense was made?


Re: Why are Tesla fanatics putting their children in the path of moving cars? (RISKS-33.42)

"John Levine" <johnl@iecc.com>
27 Aug 2022 22:24:24 -0400
>  [Mark gave me the above horrible URL, but browsing on the title instead
>  gets me the article with the generic Guardian top-level URL!  Bummer.
>  PGN]

Try this one:

https://www.theguardian.com/technology/commentisfree/2022/aug/23/tesla-fanatics-elon-musk-children-moving-cars

Then we can resume wondering what it is about Elon Musk that makes
people do such incredibly stupid things.


Re: The Crypto[currency] World Can't Wait for Ethereum's Merge, (RISKS-33.42)

Martin Ward <martin@gkc.org.uk>
Sat, 3 Sep 2022 10:50:12 +0100
People handed over real money for something with no intrinsic value in the
hope that they would be able to persuade other people to hand over *more*
money for the thing with no intrinsic value.

How is this in any way different from a Ponzi scheme or the South Sea
Bubble?

(To stave off the inevitable complaints that "money has no intrinsic value":
the value of money is backed by the power of the Government.  If you think
that your Government has some power and is willing to back its currency to a
certain extent, then to that extent

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