Don't really need an argument on /. for this one, as it's obvious and should be apparent to anyone who's ever read:
http://en.wikipedia.org/wiki/Multi-level_marketingFrom the wiki:
"Criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products
(BITCOIN BOTS, "EARLY ADOPTERS," EXCHANGE OPERATORS MANIPULATING MARKET PRICE), high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales
(RAMPANT SPECULATION VS. REAL ECONOMY), encouraging if not requiring salespeople to purchase and use the company's products
(BITCOIN "ECONOMY"), potential exploitation of personal relationships which are used as new sales and recruiting targets
(DITTO), complex and sometimes exaggerated compensation schemes
(DITTO), and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion
(NEED I SAY MORE)."
AND:
"Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents,
BITCOIN MINERS, BITCOIN EVANGELISTS, etc.), represent the company
(BITCOIN P2P NETWORK) that produces the products or provides the services they sell
(ONLINE TRANSACTION PROCESSING, COMMODITY SPECULATION). They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their downline organization
(USD ENTERING THE MARKETS).
Independent distributors develop their organizations by either building an active customer base
(BITCOIN EVANGELIZING), who buy direct from the company
(BITCOIN EXCHANGE OPERATORS), or by recruiting a downline of independent distributors who also build a customer base
(BITCOIN MINERS, BITCOIN MERCHANTS) thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale price
(EARLY ADOPTERS, BITCOIN MINERS)."
