I think it should be clearer with an hypothetical scenario in which I will do the math for you.
Image that you are willing to 'invest' 100 BTCs and you are assessing these two choices:
- a) Buy some pyramining bonds
- b) Buy some zeta-mining bonds
Option a) I spend 100 BTCs now and I get 110 BTCs in 10 months from now.
Option b) I spend 100 BTCs in zeta-mining bonds at today price of 0.278 so I got 359.71 bonds (yeah, they should be 359 bonds).
At the current difficulty, every zeta-mining bond gives as 1MH/s that is 0.019060 btcs per month. I know it is not very easy to forecast how the difficulty is going to change so we would ignore that fact and assume for a moment that it would not change. After all, both mining bonds will be affected difficulty changes but I do not have any strong evidence that makes me think that one of them is going to outperform the other in that scenario.
10 months later:
- In option a ) We will get 110 BTCs
- In option b) we will get 68.42 BTCs from 10 months of dividends + 359 zeta-mining bonds.
In such an operation, what would it happen if hardware breaks? You need more than 2 years to break-even (considering only dividends, and a slight increase in difficulty, with bounty halved around December). The expected life of FPGA devices is about 2 years. How much value will your bonds retain???
In a ponzi scheme, one takes advantage of the people he/she refers to. If we decide not to do that depositing money in pyramining is like betting against the odds that the prices of similar mining bonds will drop more than 40% by April 2013.
It is not a ponzi scheme. Who joins though your account DOES NOT give you any money directly. It's Pyramining that rewards your commercial/marketing efforts with an increased bonus, that's made possible by the referred people investments in mining infrastructure. Your income (investment + bonus) comes ONLY from mining activity.
If you have any idea and/or find a way to bring new investments into this project, your rewards will be far more high than those on any bond out there. With other bonds you just have to wait passively and hoping that everything goes as planned.
Do you think it is a fair comparision?
Do you think that bond prices will drop at half by the end of this year? maybe more by April 2013?
With increased difficulty and halved bounty, added up to aging hardware, it's most likely that those kind of bonds will fall pretty much.
On the Pyramining side, you can notice that after last investments, expected break-even is 8 months and full reward 9.
The more people deposit/invest, the faster it gets. And when the bounty halve, it won't be a problem. Also new members/investments will buy fresh infrastructure that gets added up, at better and better prices (due to volume) and edge technology, so Pyramining is probably always the best investment available.
We design our infrastructure internally, so everytime economical conditions makes it possible, we improove it, using edge technology.
Last but not least, there are 3rd parties who offer you even some form of warranties (like The Rock does), giving an insurance on the capital invested (made possible by their increased revenue using them as sponsors), and on early quitting (buying your outstanding position).
I expect that many other services/warranties/ideas will come out when Pyramining gets better visibility (it has been started just 1 month ago).
With bonds your risks are definitely higher.