The Ponzi Scheme

[hgmichna]

A Ponzi scheme, also called pyramid scam or similar, is a financial operation in which its operator promises investors a high interest payout, only to collect their money and run with it, as soon as his money mountain no longer grows fast.

Early investors, who attempt to withdraw their accrued interest, will actually get it, so the scheme remains credible.

So be wary if anybody offers you some incredibly high interest rate. A currently operating Ponzi scheme offered 7% per week, which is equal to 3,300% per year. Some stupid buggers actually "invested" money. Some still believe they will be paid back with interest.

Bitcoin makes such things relatively easy, for two reasons:

• The Ponzi scheme operator can remain anonymous (even if he tries to appear real, identifiable, and honest).
• Bitcoin is unregulated, so he may not even be illegal. Law enforcement might consider bitcoin toy money.

You have been warned.

[mollison]

A currently operating Ponzi scheme offered 7% per week, which is equal to 3,300% per year. Some stupid buggers actually "invested" money. Some still believe they will be paid back with interest.

What are you talking about? I have not heard of any proven Bitcoin-based Ponzi schemes.

[Vladimir]

A currently operating Ponzi scheme offered 7% per week, which is equal to 3,300% per year. Some stupid buggers actually "invested" money. Some still believe they will be paid back with interest.

What are you talking about? I have not heard of any proven Bitcoin-based Ponzi schemes.

I suppose the operator of that nonproven Bitcoin-based Ponzi scheme needs to come out and sue for libel. Dare ya!

[hgmichna]

What are you talking about? I have not heard of any proven Bitcoin-based Ponzi schemes.

High time.

How about obvious?

[mollison]

What are you talking about? I have not heard of any proven Bitcoin-based Ponzi schemes.

High time.

How about obvious?

To be clear, the reason I called you out in the first place is because It is a serious breach of ethics to claim that you know something you don't know.

[mollison]

I suppose the operator of that nonproven Bitcoin-based Ponzi scheme needs to come out and sue for libel. Dare ya!

You're just being juvenile here. You are not going to earn any respect if you end up being right, because of the unprofessional way in which you are going about warning people.

BTW, I won't respond further in this thread.

[drakahn]

I've always had an issue with the "3300%" per year figure... It only makes sense to bring that up if the program claims that it will run at 7%/week for a year with unlimited redepositing... and I doubt it will (Personally I think pirate is legit, but all wells run dry)

[Vladimir]

He might have chosen not the best word "proven";

BUT

It is not unethical to do risk assessment and with that particular "investment" the risk is HUMONGOUS.

It is however extremely unethical and most likely unlawful and maybe even illegal to promote to newcomers an investment schemes which any reasonable person shall consider as a potential scam and probably a ponzi scheme.

[Vladimir]

These posts will never end will they?

no, they won't

[hgmichna]

I've always had an issue with the "3300%" per year figure... It only makes sense to bring that up if the program claims that it will run at 7%/week for a year with unlimited redepositing... and I doubt it will

So you think 100% per year would be more credible? Or 1,000% per year? Tell me where you last actually got 10% per year (except in the early stage of a Ponzi scheme).

(Personally I think pirate is legit, but all wells run dry)

Now that's an interesting statement! Why do you think that?

[hgmichna]

These posts will never end will they?

I guess they will end soon—along with the Ponzi scheme itself.

[CharlesPonzi]

These posts will never end will they?

Ponzi never dies.

[wannabitcoin]

[Perry]

Hehe, its better to invest in stazi-retirement-funds:


Minus 5 - 10 %

AND

a Ponzi Scheme


Only trust your BTC savings (and maybe metal)