Can someone explain Pirate Pass Through to me?

[redbeans2012]

I've been out of the loop for a while and just getting back into bitcoin and glbse.

I see Pirate pass through everywhere and now lots of things relating to it on the GLBSE. 

Seems the dividends associated with it are quite high, is there some sort of ponzi aspect to it?

Not that I hate ponzi's just want to know whats up before making crazy investments.

Thanks guys.

[matthewh3]

Basically people are finally getting nervous about loosing the BST deposits.  So they sell the risk exposure to others while keeping a cut of the interest for giving you the privilege of taking on the risk.

[bitcoiners]

Basically people are finally getting nervous about loosing the BST deposits.

Then why not just withdrawal?

[splatster]

Basically people are finally getting nervous about loosing the BST deposits.

Then why not just withdrawal?

He's saying that people want the returns of pirate and they want an extra layer of security.

[Gladamas]

First someone invests 2000+ BTC in an account with pirateat40. These accounts are relatively difficult to get, because Pirate gives out 7% interest per week (for accounts of over 2000 BTC).

The zero-coupon bonds that BurtW and others have put together work something like this: You bid between 1.00 and 1.28 before the issuance of the bond, then a month later the bond matures at 1.28 BTC, being paid back to the owner. Since 1.00 BTC invested in Pirate turns into ~1.28 BTC at 7% interest per week, this results in profit. (The PPT.DIV shareholders receive this profit).