Bitcoin Forum

Hey guys

I signed up for btc-arbs.com a few days ago:

Here's the link to my account to check out: https://btc-arbs.com/referral/techemy

The idea is that you deposit BTC in - they (supposed professional traders) slush BTC around different exchanges for a profit.

Here's what Arbitrage Trading is about:
"Arbitrage is the act of profiting from inefficiencies on any sort of exchange or economic situation. This is possible when the price of a particular commodity is one value in a particular marketplace and a different value is another marketplace. In the context of Bitcoin arbitrage, the situation occurs when Bitcoins are being sold at one price on one exchange, and a completely different price on another exchange. This allows to purchase Bitcoins the exchange with the lower price, and re-sell those same coins on another exchange, and profit through the difference."


MY EXPERIENCE:

I still dont know what to think but here is my experience

I deposited 5 BTC on the 23rd.
I received interest of 0.1019 BTC that night.

I deposited 15 more BTC the next day.
I immediatly withdrew all 20 BTC (+ the interest I earned)

I received 20.1019 BTC back within 24 hours as stated on the website.

So... deposits & withdrawals working fine within stated time-frames.
Interest is daily (between 0.01 and 5% daily) and I can withdraw interest too.

I put 5 BTC back into my btc-arbs.com account and will prob bulk up to 50 btc and leave for the month of March.

Anybody have any insights into this service or would like to add any useful info?


Thanks

~ T

I clicked on your link and my WOT extension for chrome gave a red warning, stating potentially illegal and a scam. So not good.... Same thing for Leancy and the likes apparently. Shame, I wish there was a legit thing like this, that would suit me xD.

Just hearing you describe it, it sounds like a ponzi.

hmmmm

doesnt sound too healthy. Anyway to get some further info on the chrome warning - like if its pulled from a data base or searches for something?

The fact that they didn't run off with your 20 BTC might be evidence of their legitimacy. But if they are running a ponzi and they are smart they would have happily returned your 20 BTC because they anticipated you doing this:


Keep in mind that Trendon Shavers ran a Ponzi scheme for months and collected millions of dollars worth of bitcoins, and Bernie Madoff's Ponzi scheme ran for years and collected billions of dollars.

Also, keep in mind that there are hundreds of people looking at Bitcoin exchange arbitrage. If there is any profit from arbitrage, it is going to be small.

I wouldn't touch these schemes with a bargepole

Almost certainly a ponzi scheme

But good luck to you!

How did you get it is a scheme? As I was looking through the site and it doesn't seem to be a ponzi. I want to know how did you mentioned that as I am trying to learn such things to be more safe from any schemes

WOT is a project, an extension where users rate websites. It pulls user info when ever you go to a website, and the extension notified me that this website had a low level of trust.

if they were able to collect 0.1 to 5% interest everyday, they would just start with 1,000 USD of their own money and retire to their own tropical island in one year. think about it.

bitscalper?? is that you!?

Number one method of recognising scams: calculate the yearly profit percentage from the daily figures they use to confuse. If it sounds too good to be true, then it's too good to be true.

In this case, they advertise 0.1% to 10% daily profits (this should already be a massive warning sign: if you can make an insane 10% daily profit, then you are taking extreme risks and must have days of bad losses as well. These guys claim to only have profitable days). But let's estimate based on their reported profits for the month: they claim to have made about 1.8% profit per day on average. Maybe that sounds like it's possible, but calculate a yearly profit from that first: 100* (1.018^365 - 1) = 67287%

67287% -> SCAM

By the same reasoning BTC is a doomed bubble because it went up 7000% last year. 

Seriously there are problems with your reasoning.   
1) If they are real and successful the yields will drop.  Probably even .1% will become very high at some point.
2) Arbitrage is a real trading method used by very big money in many different markets to get safe high yields.  Clearly high is something less than 67287%.   Still arbitrage can work if you have the resources to pull it off. 

However just because your reasoning is flawed doesn't mean it isn't a scam.   Clearly caution is warranted.   There are many scams in the BTC world.   

There are thousands of sites like that.

The website always looks good
Excellent believable description
Daily returns always

They usually operate for a few months
then suddenly whoosh
"we are very sorry to say that our funds were hijacked by some payment processors or were hacked"
Withdrawals temporarily disbled
and within a month no one will know such a website existed.

Nothing anywhere

this is actually the 7th one i am seeing now

pokerbyproxy  and many more i forgot their names

I've just deposited 1BTC, let's see what happens.

I'm not surprised at the potential rate of return.  I arb traded AUR for a few days and made profits exceeding 10% each day.  In a system with lots of exchanges and relatively few exchange transactions there will inevitably be arb opportunities.

My only concern is trust.  I don't think that systems like WOT are reliable in instances such as this.  The web site hasn't been around long enough to build any trust.  Conversely it hasn't been around long enough to lose any either!  So far there is no real data on the trustworthiness of the site.

It took 4 hours, but the 1 BTC has appeared in my account.  Wait 24 hours and see what the return is.

What the hell.  I deposited .5 btc and will see what happens.

Obvious ponzi is obvious.

See this topic: btc-arbs.com - Daily ROI (0.01-10%) Update: personal opinion + ponzi proof (https://bitcointalk.org/index.php?topic=474787.0)

I made 0.69% overnight.  Now trying to withdraw, let's see how long that takes.  It says up to 36 hours (WTF?)

Do we have any concrete proof of who owns this site.  Information like this would increase my confidence - I'd know who to go after if I lost my btc!

I made .0034 and I just deposited my .5 BTC about 7 hours ago.  Just requested a withdrawl and will see how it goes. 

seemslegit.

Already got my withdrawl.  Took a hour. 

Withdrawls are 24 or 36 hours. They state this on their website.

I re-invested 5btc 10 days ago. Still cautious. But now sitting at 6.1 btc. Might leave till end of april and see if I can withdawl then.

Thanks for all the imput guys

Le ponzi for sure.  I bet these guys are baiting their trap with stolen coins to begin with.  There is no arbitrage taking place.

Looks intresting, do u know whem this program started

From their site seems they started from 1st Feb of this year (watching on the "result" page on the calendar)...

Sounds dodgy as fuck just from what you've described, I'm not touching that link, there are also newbie members posting about how great it is which just increases my suspicions. If you want more passive Bitcoin income to invest in, find an exchange that does interest payments from the trades they make or invest in some kind of trustworthy dividend stock, always be sure to do your research before hand.

I'll try it out, as I'm not a Newby (fairly recent, just hit 24 hours on forums xD) and see what happens.

Didn't see this reply before... better reply late than never  I guess.

My logic isn't faulty: No-one promised you a 7000% profit from bitcoins -- or if they did, they were scammers. The point isn't that massive profits are impossible or that arbitrage does not work, the point is that massive potential profits mean equally big risks. These guys claim no risk, zero. They seriously claim that every day is not only profitable, but very profitable.

As an addition to the original rule about recognising scams: Even if you start to believe these guys have found the holy grail (a risk-free high-profit investment), you should ask yourself the second question: Why on earth would they give the profits away to some small time internet investors? They could just invest their own money -- even taking a mortgage is no problem since it's totally risk-free :)

btc-arbs is a scam, there's no other explanation that passes Occams razor.


Do you happen to need any bridges? I have several really good ones on sale.

What do you mean by bridges?

He thinks you are gullible because you are giving your money to a scammer. http://en.wikipedia.org/wiki/George_C._Parker

Testing a ponzi scheme is stupid because the scammer just sits back and watches his scam grow as everyone tests and tests with bigger and bigger amounts. Also, keep in mind that half the people that say they are testing are probably the scammer himself.

Haha lol. How are they making money if you set in a set amount and collect the interests? Im aware of the scam, but how are they making money if you only invest lets say $500, take the interest, and reinvest $500?

Scenario A:

I "invest" 1BTC.

Sufficient suckers investors sign up, allowing them to pay me a "dividend" (or whatever they're calling it).

I keep my 1BTC "invested".

Sufficient investors sign up, allowing them to keep paying me a "dividend".

I post on bitcointalk that they are great, everyone should invest, and this is, like, totally not a ponzi, dude.


Scenario B:

I "invest" 1BTC.

Sufficient investors sign up, allowing them to pay me a "dividend".

I keep my 1BTC "invested".

Not enough "investors" are signing up, I kiss my 1BTC goodbye.


Scenario C:

I "invest" 1BTC.

Insufficient "investors" sign up, I don't receive a dividend, and when I try to withdraw my 1BTC - I can't :(



In scenarios B and C they obviously profit. The "gamble" (because that - bizarrely - is how people justify these "investments" to themselves and others) is that scenario A applies, but we have no way of knowing at what point scenario B or C will kick in.

Disclaimer: this is a comment on Ponzi scams in general, not a specific comment on btc-arbs (potential investors/speculators/gamblers will need to do their own due diligence).

I understand what I'm risking, thanks for your concern. I still want to try it, but im not going to put in more than i can put into a unencrypted wallet or the likes.

Well you asked how they were making their money, and I based my response on that. Not sure what the point of your question was if it wasn't how they make money? Unless... no, that's far too cynical.

Lol im no the OP, I just chimining in my .02 USD

No, you're definitely the poster I responded to:

I thought you meant the thread starter.... I do understand, slightly confused. Sorry about that mate.

Simple. They keep your $500. You might collect a few dollars in interest, but they have your $500.

Ahh that makes sense. I understand.