Stop blaming bitcoin | Don't fall for Matrix or HYIP

[pawanjain]

Most of us already know that HYIP (High Yielding Investment Program) are mostly fake but even then I have seen many newbies and beginner investors investing in such programs and then complaining about how they lost their investments in bitcoin. This is not about bitcoin but about staying away from such scams. Bitcoin in general has nothing to do with it. Any investment which guarantees to give out potentially higher returns in a short amount of time is most probably fake. They might show you proofs about withdrawals but people should know that it's a trap and they want you to fall for it.

Matrix programs are one such huge scam that has been carried out in India (don't know about other countries) for a long time. There have come companies like Ebiz who manipulated people into joining their so called company and then they tell you to bring in more members in order to get profits. Thus every person who joins the company has to bring in more members to earn more money.
Thus this becomes a matrix and this does breaks at one point. The most popular scam I can relate it to is Ebiz in real world and Bitconnect in the crypto world.

So Newbies, beginners, investors and everybody who is unaware of such scams, please stay away from such scams and stop blaming bitcoin if you fall for such scams by your own mistake.

[Avirunes]

People always look for other reasons to put a veil on their mistakes. We feel sorry for newbies but in general people should know these things because it happens not only in crypto world but in actual world as well.

Would you believe me if I am selling a sneaker at 80% discount? You will certainly have a second thought on the back of your head that l am selling something which is not a genuine copy or have defects in it. Similarly any schemes which guarantees you high returns on your money invested then they are definitely plotting something.

There is a saying "If something is too good to be true or real, don't believe it". Some might think it applies in crypto world because there are too many schemes like that but in actual it applies in the outside world as well.

[eaLiTy]

People always look for other reasons to put a veil on their mistakes. We feel sorry for newbies but in general people should know these things because it happens not only in crypto world but in actual world as well.

I have met many victims of these frauds and for the past two years i came across many people who invested their money into these fraudsters schemes, the most common theme i saw is that these fraudsters approach women who are salaried or small business owners and convince them about bitcoin and then they will orchestrate their plan about their fake coins and to have legitimacy they will have a neatly designed website and promise a good return than any other investment, it is really sad to see how they were scammed promising huge returns but still there are people who are convinced that they will have their profits, i will post the name of the coins after sometime as i do not remember those from the back of my head as there are many scam coins and some are listed in CMC too which is why some are still optimistic  .

[avikz]

MLM and Ponzi scams are sad reality of India. While educated people don't blame bitcoin for such scams but government bodies like RBI are effectively combining bitcoin/cryptos with such scams. If you refer to the arguments in RBI vs Crypto case dated 20 August, 2019, RBI had blatantly linked cryptos as ponzi scams. Just see the below tweet from Crypto Kanoon who were providing live updates of the argument to the general mass.

https://twitter.com/cryptokanoon/status/1163760567586185216

The mention of ponzi is not a good link up to be done with crypto. People fall prey for ponzi scams because they want to earn more than the conventional banking interest rate. With the falling interest rate, such ponzi scams are getting prominence again, especially in South Indian states who are offering as much as 18% - 28% interest rate per year.

SEBI has failed big time in educating general mass from the risk of such ponzi investment, which is their primary job! As a result now bitcoin is being linked with the ponzi scams. It's a big failure of the regulatory body who didn't apply their mind in studying cryptos properly! 

[eaLiTy]

SEBI has failed big time in educating general mass from the risk of such ponzi investment, which is their primary job! As a result now bitcoin is being linked with the ponzi scams. It's a big failure of the regulatory body who didn't apply their mind in studying cryptos properly!  

The problem is that most of the middle class and lower class people fall for these scams as they will be convinced with all the fancy data they provide on how to become rich within a short period of time, the government has proposed a bill to ban unregulated deposit schemes this year and most of the big time ponzi scams will shut their doors if it is implemented.
The comical part here is that fiat is used for centuries to run ponzi scams around the world and i never heard anyone blaming fiat currency, but when these fraudsters started collecting money in the name of bitcoin, all the government want to blame is bitcoin. The reality is that you can find reasons to hate anything in this world but you should have some logic and we are yet to see the logical reasoning from the government.

News article regarding the bill.

 

[kabit9]

Indeed ponzi schemes are an age old racket, not by any means unique to crypto.  I have seen Philipino maids invest their hard earned money into so called high yield scams (not crypto).  These schemes tend to prey on those less financially savvy and often net huge sums of money before disappearing.

Blaming bitcoin is silly.

It's like blaming cash for all the illegal stuff done with cash.  Dont hate the medium, hate the game.

[2double0]

I have learnt about the biggest MLM scams going in India and RMD was one of them if not wrong. People don't get it that only those who dive in at early stage in these things are the ones who make money when they are able to convince someone to join under them with their bs product based on which they market their scheme. These helpless guys 'those who opt for their MLM scheme' then start to run the game by trying to convince 2-3 more people to join under them and if possible, get more involved. Bitcoinnect was such a failure that everyone must have learned that we should not go behind free/ easy money and do hard work to achieve success in our life. HYIPs are either for those who enter early 'only if it succeeds or it is for nobody 'it people don't take any interest'. You guys are familiar with BTC doublers? It was an assured success mantra for the admins who used to run those sites and made many people lose big over there.

[libert19]

People don't blame cash when they get scammed in such schemes in real life, so if you get scammed in crypto world this way, it's not crypto's fault.

[RapTarX]

Newbies are the target of this HYIP/Matrix group of people. They don't know how people can deceive here. However, that has nothing to do with, although media promotes crypto related scams with highlights. That's being a trend, probably they don't know what is crypto, or they have been controlled by the govt.