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July 11, 2012, 01:51:40 AM |
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@ Vandroiy,
Look dude, certainty does not equate to knowledge.
I started a thread claiming I was 99.9% sure that what Pirate is doing is legitimate. I also made sure to point out that 99.9% certainty is not 100% certainty, and I also made sure to point out that my belief should not be treated as investment advice.
Your ego is getting the better of you. Does the information available suggest that Pirate's operation could be a ponzi? Yes. Does the information available also suggest that Pirate's operation could be a legitimate business? YES.
Also think of a scenario in which it could be both. In other words, think of a model that mimics characteristics of a ponzi scheme but in reality is a completely legitimate business operation. For example, a scenario in which lenders provide deposits that can be used to make a profit for both Pirate and the lenders (interest), leaving a greater sum of deposits which can then be used to make more profit and pay more interest, leaving an even greater sum of deposits which can then be used to make even greater profit and pay even more interest, etc.
Now, what would the inevitable conclusion of such an operation be? After a while, the BTC supply in the market begins to decrease and the interest payment rate needs to be lowered, which is what is happening on August 1st.
If you give me $100, I promise you I can turn that into $107 in 1 week.
I also promise you I can turn $107 into $115 in another week.
I also promise you that I can turn $115 into $124 in another week.
But, if there are only $10.5 million in existence (representative of BTC), there will eventually come a point at which making 7% becomes impractical if not impossible, so the interest rate will need to drop. Now, I couldn'tve made those profits without your money (characteristic of a ponzi), but the profits were completely legitimate.
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