This doesn't prevent scams in the other direction, but it's something. This is a common problem many independent sellers face when doing legal and legit business.
This doesn't prevent scams in the other direction, but it's something. This is a common problem many independent sellers face when doing legal and legit business.
Which is probably the majority of the actual scam cases. Sellers scamming buyers.
So I don't think this is a good case at all.
Regarding businesses specially, someone operating one or more scam online retailers is actively trying to suppress word of mouth. They also don't care about repeat business because their profit margin is so high. Their process may even specifically include periodically cutting ties with their previous name, websites, vendor accounts etc when victim ill becomes unmanageable.
As a business that wants to last a long time and attract customers, reputation is everything. People buy from large, established companies for this reason. Crypto payments help all sellers by eliminating an enormous problem of scam buyers using stolen credit cards.
Even if it wasn't, though, how can you say this isn't useful? Even if 99% of scams were from sellers, the fact that this trivially and provably solves scamming from buyers is amazing. Saying this isn't a good case because cryptocurrency doesn't miraculously universally eliminate the possibility of any fraud from any party in any scenario is really setting a very high bar.
And with things like Ethereum smart contracts, you theoretically can prevent fraud from all parties in some cases, and defer all risk to the implementation of the contract. Or do you consider this a bad case as well, because a contract could possibly be flawed and "the majority of fraud isn't actually due to human deceit"?
Essentially, crypto's major benefit is skirting regulation because its new and that can't last forever.
Payment brokers are always going to be a point of failure. But also, it's about pragmatism: can you name an existing payment broker that fits the criteria? If not, what option are they left with other than to use cryptography as their broker?
But, yes, it's often about avoiding certain kinds of regulation. Regulation isn't inherently good or bad. Some regulation is good in some contexts and some is bad in some contexts. Cryptocurrency lets you enforce your own absolute regulation for cases where legal regulation isn't able to easily help you (like in this scenario).