Why reputation is essential on the free market

[GazetaBitcoin]

Many users come on this forum for trading activities. And the merchandise is varied - physical goods, digital goods, cryptocurrency exchange, auctions, collectibles, PC equipment, mining equipment and so on.

The forum acts as a free market and the good reputation is fundamental for successful deals. As Tim May said more than 30 years ago, "Reputations will be of central importance, far more important in dealings than even the credit ratings of today".

On BitcoinTalk, the reputation in trading is represented by the "Marketplace Trust", which is a score which shows your positive, neutral and negative feedback. If a trader has a bigger positive trust score, it should mean that he is trustworthy. The opposite is true as well: if a trader has a relevant negative trust, he / she should be avoided.

The system is more complex than that, but this is not the point of the topic. However, two important aspects need to be mentioned:
- for negative trust feedback, on this forum exists also a "Flag System" which can be used for a more detailed explanation about a trader's untrustworthiness
- although the trust system was designed for trading activities, forum members tend to give feedback also based on their personal opinions about others, thus influencing the trust score. Thus, the users interested in trading with someone should read carefully all the feedback about the respective person in order to have a clear impression about who is the one they're willing to trade with.

As mentioned above, the topic is not about the trust / flag systems, but about the importance of having a strong reputation. The bigger the reputation is, the bigger chances are for an user to make a transaction. As well, the opposite is true: an attempt of scam or a violation of a contract may ruin a reputation.

Generally, people involved in trading - no matter if they are sellers or buyers - are looking for smooth, successful trades. And the general idea is that if a person has good recommendations (in this case - feedbacks), there are low chances of getting scammed. That's why, a trader who wants to sell a product will be interested in a buyer who has good feedbacks (and also a good trust score), stating that he / she pays fast (for example). A trader who wants to buy is interested in a seller that has good feedbacks stating he /she sends the product as he /she agreed to do, his / her product arrives fast, it is in good shape, without damages etc.

Another problem which occurs often is the following: generally, if the parties don't have (both) a good reputation, the following question is asked: "who is the one who sends first (the money / the good)?". Basically, the one with reputation asks the other one to send first, as he / she can't prove his / her trustworthiness. If the other one is not willing to take the risk and send first, the deal is off (not to mention how this situation goes when there are two parties having both a bad reputation). This problem has way lower chances of occurring if there are implied two parties having both good reputation - in this case, most likely, none of them would mind to send first.

Reputation defines us as individuals in the society and as a consequence, in trading activities.

Honest persons and traders should be very interested in proving their trustworthiness on the free market, thus being able to easily, smoothly and successfully transact their merchandise.

However, if the respective trader is a new member here, he /she should perform some steps, in order to gain trust from the others in trading activities. Reputation isn't built over the night, nor over the month. It takes time to build a strong reputation or for your (user)name to become known by others and seen as "trustworthy". But once a trader achieves a good reputation, his / her reputation certifies for being a trustworthy merchandiser.

There are several ways for starting a career in trading on the free market. Maybe a new member can start, as a seller, with sending his good first and wait for money afterwards. Or, if he /she is a buyer, he / she can send money first and wait for the good afterwards. But he / she must choose cautiously the other party and ensure that party is someone with a good reputation, thus minimizing the risks of being scammed. If the trade is successful, it should be followed by another and another and in time, with easy steps, the career in trading and the good reputation are built.

As an end note, BitcoinTalk is even more complex when it comes to trading. Besides the trust score and the feedbacks, a trader can also take into account the other party's rank and merits earned. Not to look only at the rank / merits, but take them as a whole, together with the trust score. If an user has a high rank, or he / she earned many merits in the past, these should be signs of someone having good intentions. This is not always true, though. But these aspects together with a strong positive trust score show an overall picture of someone which is less likely trying to scam.

Everybody must make their due diligence. But have in mind that for being trusted, you must have a good reputation. And for having a good reputation you should prove (many times) that you honor your agreements.


Translations (in chronological order):

• Română: De ce reputația este esențială pe piața liberă, translation by GazetaBitcoin
• Filipino: [Translation]Bakit mahalaga ang reputasyon sa libreng merkado, translation by jeraldskie11
• Polish: Dlaczego reputacja jest niezbędna na wolnym rynku, translation by cygan
• German: Wieso Reputation auf dem freien Markt unerlässlich ist, translation by AHOYBRAUSE
• Bengali: ফ্রি মারকেট এ রেপুটেশন কেনো অপরিহার্য, translation by Learn Bitcoin
• Pidgin: Why Reputation de Important for Free Market, translation by Nheer
• French: Pourquoi votre réputation est primordiale dans un marché libre, translation by iwantmyhomepaidwithbtc2
• Indonesian: Mengapa reputasi memiliki peran penting di pasar bebas, translation by dansus021
• Urdu: فری مارکیٹ میں ریپوٹیشن کیوں ضروری ہے۔, translation by ThemePen

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[Bttzed03]

Maybe some things to add there:

• Reasons why newbies are usually asked to send first or use a reputable escrow. Some of them could be wondering why they need to do it and it's important that they understand. One reason is that many newbies in the past have been involved in scams and the community doesn't want anyone to fall victim again. A reputable escrow also serves as their own protection
• Some users might have fake feedbacks/trust scores so don't trust those greens blindly. Read Trust Selfscratchers: who scratched his own back the most?

[GazetaBitcoin]

Indeed, you are right.

I intended initially to mention escrows as well, but the subject is way too complex as a whole.

My intention with this topic was to raise awarness why a good reputation is needed on the free market, not how to perform trades safely It is a different subject. Related, but not the same.

Even though, I touched a bit the "who sends first" problem and I suggested to the newbies to be willing to send first at their beginning in trading, in order to gain trust and reputation. Of course, taking all cautionary measures needed.

Also, the same good reputation is needed also for escrows - they should also be interested in building a good reputation

[HomeOfCoins]

To my own understanding and in relation to  your post, I think the expense of getting scammed without an Escrow is really really way too high on the forum, without the use of a reputable escrow, Its seems to be an easily way to scam forum members. And since escrow serves based on their reputation and Protection. Its advice able to get one on your project and I support using escrow on any project as well...

[GazetaBitcoin]

There are less risks when using escrows, that's right. Dont't forget though that escrows also take taxes for their services.

However, as I wrote in my previous post, the topic wasn't written as a guide for trading securely. Its meaning is to open the eyes for why is important to build a good reputation on the free market and also offering a few tips in this direction. Read also my prior post.

[snapee11]

A very informative topic though earning a positive reputation in this community is a bit difficult to start but as you build on it step by step, you will be earning your good reputation in no time.

For the moment, if you are new in here or transacting with a new member, having an escrow is a must to avoid any scams. Thats always 99℅ safe.

[Coyster]

For the moment, if you are new in here or transacting with a new member, having an escrow is a must to avoid any scams. Thats always 99℅ safe.

Of course using escrows is good, if you're dealing with the right/trusted user and not an impostor. That being said, mind you that scammers now impersonate reputable users on either Telegram or other social handles to act as escrows and any fund sent to the scammer can't be recovered, see: https://bitcointalk.org/index.php?topic=5281221.0, that topic is an example of how this scam works, before choosing an escrow, verify (don't just send, thinking it's safe) through the community and a signed message from the escrow.

[cryptoaddictchie]

For the moment, if you are new in here or transacting with a new member, having an escrow is a must to avoid any scams. Thats always 99℅ safe.

Transaction without escrow is 50% chance of being scammed. I dont know but its true that the root of all evil is money. There are some guys in the forum whom earned their reputation for so long and even some started theirs but ended up scamming some good guy here. Trust is really unpredictable, no matter what you viewed someone even close to 99% there are still 1% chance that a guy could con you. Im not investing stories but its proven and there are two cases here involve on forum that kind of scenario where lenders trusted a guy whom very highly reputable and still get away with huge money.

[aioc]

Transaction without escrow is 50% chance of being scammed. I dont know but its true that the root of all evil is money. There are some guys in the forum whom earned their reputation for so long and even some started theirs but ended up scamming some good guy here. Trust is really unpredictable, no matter what you viewed someone even close to 99% there are still 1% chance that a guy could con you. Im not investing stories but its proven and there are two cases here involve on forum that kind of scenario where lenders trusted a guy whom very highly reputable and still get away with huge money.

I can't recall the name of that guy but I confirmed that this things happen, there is really no guaranty that high rank members here with a good reputation will not scam you, better safe than sorry just use escrow not that you do not trust or respect his reputation and ranking but it's a way to protect you, we do not know who are dealing here.

[gentlemand]

Even when someone has built a good reputation you shouldn't become complacent. If there are options to protect yourself then take them, even if they're a little more hassle and expense.

There've been quite a few 'trusted' accounts that were either building a long con or lost their mind and screwed people. And it's surprising how tiny the amounts often are that people are willing to throw away their account over.

[akirasendo17]

Even when someone has built a good reputation you shouldn't become complacent. If there are options to protect yourself then take them, even if they're a little more hassle and expense.

There've been quite a few 'trusted' accounts that were either building a long con or lost their mind and screwed people. And it's surprising how tiny the amounts often are that people are willing to throw away their account over.

This is correct some people might change when it comes to money, i have seen people disaappear after taking cash from a person
we must take an extra precaution when making transaction, im not saying don't trust someone, but making extra effort to look
on his/her last transactions record will do to make sure we are safe from scam, specially during this pandemic, that people really need
money.

[GazetaBitcoin]

This is correct, but what I meant with this topic is to help people understand why it is important for them to build a good reputation on the free market. Without building a good reputation for yourself you won't be able to settle too many transactions and many users would tend to avoid your services and prefer the services offered by others, although they may be more expensive, if those services are offered by members with good reputation. Choosing an escrow is limiting the risks at some level, but not entirely. Besides, even that escrow should have a good reputation and thus we come back to the topic's idea: if you would like to become an escrow you have to build a good reputation first, otherwise traders won't be interested in your services.

What I'm trying to say is more a general idea: no matter if you are interested in buying, selling or escrowing, at first you have to work for having a good reputation. The reputation systems mentioned by Tim May decades ago are now present on the free market and this is how the free market works. If I'd like to buy a Bitmain coupon of 100$ and I find it -- let's say -- at mikeywith, which is selling for 50$ and I also find such coupon at a newbie which registered yesterday, selling the coupon at 30$, I'd choose to make the deal with mikeywith. Why? Because he is a well established member of the forum, he has made hundreds of transactions with Bitmain coupons, he has good feedbacks from other users, he has earned thousands of merits and he is trustworthy. But it took him years to reach this point. Reputation can't be built over the night and patience is needed.

[cryptoaddictchie]

I can't recall the name of that guy but I confirmed that this things happen, there is really no guaranty that high rank members here with a good reputation will not scam you, better safe than sorry

I dont know whose on top of your head but I am talking about the guy on this thread.

https://bitcointalk.org/index.php?topic=5233790.0

Pretty sure many admire him including him with his built reputation but of course you may never know when someone strike you especially if its involve money. Trust no one. Always better to be safe and used all means of cautious.

There've been quite a few 'trusted' accounts that were either building a long con or lost their mind and screwed people. And it's surprising how tiny the amounts often are that people are willing to throw away their account over.

Throwing accounts for these people might be not hard to do when they knew how easy for them to do it again. Scary actually cause those guys might already building up reputation and can hit again.

[virasog]

This is correct, but what I meant with this topic is to help people understand why it is important for them to build a good reputation on the free market. Without building a good reputation for yourself you won't be able to settle too many transactions and many users would tend to avoid your services and prefer the services offered by others, although they may be more expensive, if those services are offered by members with good reputation. Choosing an escrow is limiting the risks at some level, but not entirely. Besides, even that escrow should have a good reputation and thus we come back to the topic's idea: if you would like to become an escrow you have to build a good reputation first, otherwise traders won't be interested in your services.

What I'm trying to say is more a general idea: no matter if you are interested in buying, selling or escrowing, at first you have to work for having a good reputation. The reputation systems mentioned by Tim May decades ago are now present on the free market and this is how the free market works. If I'd like to buy a Bitmain coupon of 100$ and I find it -- let's say -- at mikeywith, which is selling for 50$ and I also find such coupon at a newbie which registered yesterday, selling the coupon at 30$, I'd choose to make the deal with mikeywith. Why? Because he is a well established member of the forum, he has made hundreds of transactions with Bitmain coupons, he has good feedbacks from other users, he has earned thousands of merits and he is trustworthy. But it took him years to reach this point. Reputation can't be built over the night and patience is needed.

This holds true for all market places and not only the bitcointalk services section. If anyone wants to work on fiverr, the reputation and reviews are extremely important to get the orders. That's the reason a new person often find difficult to get their first orders because they don't have any work history and review. After you get some orders and good reviews, then the next important thing is SEO.

[Maus0728]

I dont know whose on top of your head but I am talking about the guy on this thread.

https://bitcointalk.org/index.php?topic=5233790.0

Pretty sure many admire him including him with his built reputation but of course you may never know when someone strike you especially if its involve money. Trust no one. Always better to be safe and used all means of cautious.

Oh boy! I wonder how this person is doing right now? What is the status of his cryptocurrency memorabilia shop which he uses as an alibi to deceive other people's money  . Even until now, I don't know if that business he's building is true or just a hoax to build up something deceitful even at the expense of losing his account.

The things is -- I became more complacent to deal with this person which leaves me disregarding his true intent.

[GDragon]

This is correct, but what I meant with this topic is to help people understand why it is important for them to build a good reputation on the free market. Without building a good reputation for yourself you won't be able to settle too many transactions and many users would tend to avoid your services and prefer the services offered by others, although they may be more expensive, if those services are offered by members with good reputation. Choosing an escrow is limiting the risks at some level, but not entirely. Besides, even that escrow should have a good reputation and thus we come back to the topic's idea: if you would like to become an escrow you have to build a good reputation first, otherwise traders won't be interested in your services.

What I'm trying to say is more a general idea: no matter if you are interested in buying, selling or escrowing, at first you have to work for having a good reputation. The reputation systems mentioned by Tim May decades ago are now present on the free market and this is how the free market works. If I'd like to buy a Bitmain coupon of 100$ and I find it -- let's say -- at mikeywith, which is selling for 50$ and I also find such coupon at a newbie which registered yesterday, selling the coupon at 30$, I'd choose to make the deal with mikeywith. Why? Because he is a well established member of the forum, he has made hundreds of transactions with Bitmain coupons, he has good feedbacks from other users, he has earned thousands of merits and he is trustworthy. But it took him years to reach this point. Reputation can't be built over the night and patience is needed.

This holds true for all market places and not only the bitcointalk services section. If anyone wants to work on fiverr, the reputation and reviews are extremely important to get the orders. That's the reason a new person often find difficult to get their first orders because they don't have any work history and review. After you get some orders and good reviews, then the next important thing is SEO.

True, cause when we are working online, a good reputation is needed because how would they trust you if they don't even know if your true, or if their money would not go to waste if they do some transactions with you. A good reputation is almost equivalent to how can people trust you even though you are just connected online. Same thing with life actually, you need experiences or a bachelors degree for a company to trust you with a position. And in online freelancing jobs, you need to have feedbacks from other employers and a sample of your works, and how you do your work, how you communicate with your employer and etc. And that will be your reputation, you build it for months and years, same thing with accounts here.

It's true too that there are trustworthy people that will tarnished their good reputations, which is so unpredictable, sadly that's how humans live. Sometimes we humans create our own destruction, messing with all the hard work we did in the past. A good reputation can be tarnished but still, it is the one needed if you wanted to have a career in any industry you wanted to dominate.

[cryptowhitewalker]

The duo are priceless thus for any positive reasonable person, they are worth holding and maintaining for as long as possible. This is very positive, thanks for this interesting reminder!

[ThemePen]

Dear GazetaBitcoin I want to reserve this topic to translate it in my local language (Urdu). If it is not reserved by anyone else from my Pakistan Community so confirm it and reserve for me. When you will confirm I will start working on it.

[GazetaBitcoin]

Dear GazetaBitcoin I want to reserve this topic to translate it in my local language (Urdu). If it is not reserved by anyone else from my Pakistan Community so confirm it and reserve for me. When you will confirm I will start working on it.

Hello! You can make the translation. Make sure though that (1) you don't use an automatic translator; (2) you follow precisely the text formatting; (3) you use the header I mentioned here; and (4) you send me a preview before publishing it and you wait for my approval for publishing.

[digaran]

Of course what you said on OP is totally wrong, a trust network works only if the people on it have no monetary incentive to manipulate the system. And so, since %90 of members on DT are monetarily incentivised, there is %99 chance of gaming the system for their own benefit.

But if we want to share something useful for newbies, here it is:

Do not under any circumstances trust any trust ratings blindly, and always use escrow when you want to trade, that way, trust rating/reputation would mean zero, which should mean zero, because you don't know who you are dealing with, unless you know them by name/real identity.