I've been using CryptoHourly for a week and a half now and here's my view of it...
First of all, yes, it DOES seem like a "semi"-ponzi scheme so if anyone is afraid of being scammed, stay clear of it.
Secondly, I'll make my own case... I'm new to bitcoins and I consider myself a "BTC Farmer" (if there's a term like that)... I don't mine for BTC, I don't purchace BTC... I just collect bits and bits of Shatoshi here and there and fill my wallet. It's not very efficient and I KNOW it will take a loooooong time to make 1BTC just from that so investment sites like CH are mandatory for the capital to grow. So, is CryptoHourly a good investing site?
For small timers like me, yes it is. Firstly, even if they DO scam me, big deal... I would have lost the 0.007 BTC I collected (and invested) so far. Sure, it would be a wast of time for all the farming I did but meh... It's not like I stopped living to get those (I wasted many more valuable hours on pointless video games, doing this is nothing!!
). If it isn't a scam, then from one point on I will stop farming alltogether and just reap the rewards from CH.
But will CryptoHourly last??I don't know much about bitcoin mining and stuff (like I said, I'm rather new to this) but CH's buisness model seems... Legit! I mean, their investment profit is 3.6% daily. This means that an investor will get his investment back 100% in a month. Now, CH claim to have an ASIC array for mining so, if they can make 1-10 BTC daily, so in a time-span of a month (until the investor gets his capital back) they will probably have mined much more BTC than what they need to return!
What does that mean for investors?For small timers like me, it means that CryptoHourly will have no trouble keeping up with our Balance up-keep. Considering that most of the investors are smalltimers (or carefull investors) that don't just pour their hard earned BTC into them, their mining gains should be enough to cover everyone already. And, up to this date, it hasn't even been a month since the site launched, so no Investor ever got their full investment back 100%.
But, again... Will it last?Like I said before, this feels like a ponzi scheme. Only accepting investments over 0.001 BTC (5.1 BTC if you want to sign up for the 0.20% hourly profit?)... It does sound fishy. So, I guess the first "milestone" for this site is the day they reach a month of existance. That's when they will have repayed their first investors 100% and they will have to pay them "out of their pockets" from there on. But, like I said before, if they DO have a descent ASIC mining array and they profit from that, they will have no problem keeping the company running. The second milestone would be the halving of the newly generated BTC in 2016 (from 25 per 10 mins will go down to 12.5 per 10 mins). This will mean that their mining probably won't be able to keep up with investment profits. After that, they will have to either drop the profit rate or just abort ship, take away the rewards and live hapily ever after.
To tell you the truth, I'm more concerned about the second mileston than the first one...
But IS IT a ponzi scheme?Only way to expose a ponzi is to make large investments right away. A ponzi scheme depends on small investments to create an initial capital in order to live up to their profit claims. If someone right off the bat invests a huge amount, the schemer will have to either deny the offer or grab the money and dissapera because, in the long run, there's no way he can keep up with the profits. This will also happen with CryptoHourly if people start throwing large amounts of BTC their way. So, I guess it's up to us to either keep our investments small (well, like I could do otherwise!
) and see how deep the rabbit hole goes or throw away our BTC to expose their scam (which, I should say, isn't an entirely profitable move!).
Again, up to now, they seem legit... Let's wait for the first milestone (their one-month anniversary) and then we'll see how it goes.
Cheers!
Disclaimer: I'm in no way associated with CryptoHourly in any way other than being a registered investor on their site. I'm just willing to give people a chance and look on the bright side of things than being a straight up "nay-sayer" just because a transaction went bad.
P.S. I noticed that every time I sent BTC from my BlockChain wallet to CH, it charges me with 0.0002 BTC as transaction fees. I.e. on my last investment, I sent 0.0015 BTC to CH but my wallet balance was charged for 0.0017. This happened to every other transaction I did towards CH, don't know if this is normal or it has something to do with CH. I've only sent BTC to CH after all, nowhere else...
