Ponzi Scheme 101

[Rikafip]

But if you compare it to a bank, that is totally different that's why you can smell from a far that if you see this huge returns

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

[Sammye3]

Being informed doesn't make someone less greedy. It's still greediness that pushes them into it but they're confident about themselves thinking they'd be able to exit before it collapses. You can be informed and still be the most greedy. In fact, if you are informed but still go into ponzi scheme, it means you're the most greedy because you know what you're into but still want to profit from other people's lose. If this is not greedy, I don't know what to call it. It doesn't make any difference whether you're informed or not, it is all due to greed but the difference is those not in informed are acting based on ignorance.

Greed remains the main reason why many people fall for this ponzi schemes, because there is always an outrageous catch that attracts them. More than half of people that get into a ponzi scheme are aware because before they would get to know about that project, someone should have introduced it to them, pointing out that it is potential pomzi scheme.

People do not care about losing their money when they are promised double or triple of their earnings and that's a probelm. There would always be more ponzi schemes in the future and people would not fail to enage in it, even with full awareness. They need money that comes easy instead of investing their time and resources into something that actually counts, this is beyond ignorance for me.

[MarryWithBTC]

But if you compare it to a bank, that is totally different that's why you can smell from a far that if you see this huge returns

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

Like they lost their money ?

I mean it was a registered and regulated bank with security funds deposited in the central bank of the country. The victims were supposed to be partially compensated even if not absolutely. Unless that was not a registered bank or an entity the government used to scam her citizens.

I go by a rule of thumb: if something sounds too good to be true=scam.

But some people make some exceptions. If Saylor o CZ offers something that sounds too good to be true, many people will invest with scrutiny. This is the generation of influencers influencing the public to act without logic.

[Big Dirams]

But if you compare it to a bank, that is totally different that's why you can smell from a far that if you see this huge returns

Well, even a bank can turn out to be a scam. Back in the 90s, there was a bank in my country that offered ~double the interest rates of other banks, so people naturally rushed to put their hard earned money into it, thinking it must be safe since it was a bank, it was regulated etc. In the end, tens of thousands of people lost their money.

I go by a rule of thumb: if something sounds too good to be true=scam.

From the beginning of them offering higher interest rates which is more than other banks interest rates then responsible person would have think it through and and make some research about why they wish to do that because that just give an attribute of a bank that isn’t here to stay. Anyone could have fallen for that trap but responsible person would not because why are they giving higher interest rates better than the other banks.
If it about gaining more clients then there are other ways to that instead of just increasing their interest rates, well in one way or the other they would probably milk out that money that they give for free from their clients in one way or the other, that is if they didn’t run away and wish to stay for long.
We should be careful out there in making decisions about anything free or extraordinary.

[Abdulzuruku01]

Greed remains the main reason why many people fall for this ponzi schemes, because there is always an outrageous catch that attracts them. More than half of people that get into a ponzi scheme are aware because before they would get to know about that project, someone should have introduced it to them, pointing out that it is potential pomzi scheme.

People do not care about losing their money when they are promised double or triple of their earnings and that's a probelm. There would always be more ponzi schemes in the future and people would not fail to enage in it, even with full awareness. They need money that comes easy instead of investing their time and resources into something that actually counts, this is beyond ignorance for me.

People know very well about Ponzi schemes, but it's their greed that causes them to get involved in them.  In fact there are some people who are even waiting for a Ponzi scheme to participate in because they see it as an opportunity to change their lives.They are fully aware that it affects people but they still foolishly put their money into it. That's why I agree with you as you said, even in the future they will still engage in it, because it's obvious that people don't want to learn how to avoid getting themselves into these scam activities. No investment that guarantees quick profits or any investment that promises to double your money instantly these are red flags.