MoneyPak and Escrow

[solin]

Hello everyone,

I have a question regarding best practices when using MoneyPaks.  I have noticed that the grown-up forums have a lot of people looking to buy BTC with MoneyPak.  Is there some kind of best practice or escrow system when conducting such transactions?  As I understand it, giving someone the code on the back of the Pak is the same as giving them cash blindfolded in that you have to hope that they will come through on their end.  Likewise, any seller who offers to send the BTC first is taking the same risk.  So, how is such an exchange usually handled from a procedural standpoint?

I apologize if this has been asked before, but I couldn't find anything regarding how the transaction itself is handled.

Thank you in advance for your help.

-cheers

[Bricolage]

Hello everyone,

I have a question regarding best practices when using MoneyPaks.  I have noticed that the grown-up forums have a lot of people looking to buy BTC with MoneyPak.  Is there some kind of best practice or escrow system when conducting such transactions?  As I understand it, giving someone the code on the back of the Pak is the same as giving them cash blindfolded in that you have to hope that they will come through on their end.  Likewise, any seller who offers to send the BTC first is taking the same risk.  So, how is such an exchange usually handled from a procedural standpoint?

I apologize if this has been asked before, but I couldn't find anything regarding how the transaction itself is handled.

Thank you in advance for your help.

-cheers

Sounds like a Prisoner's Dilemma. (correct me if I'm wrong in the terminology)

I don't have the answer you seek, but I do like how you asked your question in professional manner. Welcome to BitcoinTalk and I look forward to reading your posts in the future on this board.

Nikki the Bitch (IRL, I'm the sweetest thing you'll ever meet, but...)

[Dan The Man]

Do it one piece at a time with pieces small enough that you won't be too upset if it is stolen. Start very small and increase size keeping in mind that at any size you could be robbed.

This is all theoretical to me. I am sure there is an optimal solution if you work at it:
Assume that you are taking all of the risk as the buyer. So you send money first, then you get BTC. Start with a very small purchase and increase the size of each purchase until you finish the transaction within a purchase size that you are still willing to accept the risk of theft. That way, assuming that the seller is dishonest, it is still in their best interest to wait until the end of the purchase to take your money because that is when the purchase will be largest. Then if you want to get really tricky, you can cancel the deal before the last purchase, protecting you against the dishonest seller. I don't know if that would make for bad relations though. 

[solin]

Thank you for the kind words.

So it all boils down to never risking more than one can afford to lose.  As sensible strategy for a lot more than just BitCoin transactions.  Also, I looked into the prisoner's dilemma.  Quite an interesting bit of social commentary to be made there.  For you literary pleasure:

http://en.wikipedia.org/wiki/Prisoner's_dilemma

Thanks again for the information.

-cheers