If Pirate really is as good as claims, then he should be able to explain, at least in general terms, how he generates profits.
Q: What are my coins used for?A: Coins are primarily used for local transactions but may also include the following:
- Market Arbitrage
- Private Loans To Network Members
And if he does demonstrate that he's not running a ponzi scheme, then I'll humbly apologize.
How would you propose he demonstrate he isn't a ponzi?
By actually demonstrating he knows what he's talking about. If he can do that, show backdated examples, and explain his models, then I'll get him a six to seven figure job working for a hedge fund. I know a few quants that would pay top dollar for his legitimate trading strategies.
Local transactions? Seriously? Market arbitrage? Private loans? That can mean anything. Here, watch me take a 100 dollar bill from one pocket and put it in my other pocket. Why not
Unicorn Arbitrage?
What Pirate fails to understand is that his returns are outliers relative to all other legit investments. How many standard deviations does it take before this sinks in?
I'm sure Pirate will continue to show great returns and make people money, but those profits likely come from the people who lose everything at the end.
You can lead a horse to water......
Bitcoin has incredible potential. I don't want to see it sabotaged before its time and have its reputation sullied by a few dodgy "investment funds."
First: if it is indeed a ponzi and people lose their shirt, I don't see how
this will affect the usefulness of bitcoin nor sabotage it. In particular, if
this one is not a ponzi, be sure there will be one organized at some point.
Bitcoin will survive in spite of those, mostly because there coming around
is inevitable.
Another way to think about it is: Ponzis have been wrought for years and
that did not affect the value of the US dollar (except perhaps the one that
is currently being operated by the fed).
Second: your proof is that no normal investment can ever give that kind
of returns, therefore the scheme must be a ponzi. How do you know that
it is a "normal" investment ?
For all you know, pirate uses the funds to buy cocaine in bulk in columbia
and resell it US side. That's not a ponzi. And the rate of return on it is
guaranteed to be much larger that what he pays his investors back.
Without going to such extremes, he could also be laundering money. I don't
know what rate that goes for, but it's likely in the ballpark of the return he
offers his investors.
In other words: it could be many things, and until you bring some sort of
proof to the table, you don't know a thing. If you're uncomfortable with the
whole thing, just don't invest.
Money laundering and cocaine...yeah, that's much better than a ponzi scheme.
More reliable, I suppose.
But a red herring nonetheless.
Not that I care what other people do with their free time. To each his own, but am I the only one that wants to see bitcoin succeed as a currency that's actually used in everyday commerce, not just shady transactions? Go ahead and launder money and buy cocaine for all I care, but here let's focus instead on what Pirate actually claims.
And why should I bring proof to the table, when I'm not the one claiming such absurd investment returns?
God forbid someone should ask questions about a smoke and mirrors investment fund!
