2015 The year of the Ponzi, BE WARNED!

[plock]

https://i.imgur.com/mOgoQn4.jpg
Image orginally from this post by izanagi

I thought I would give a brief explanation of what a Ponzi scheme is and the dangers in investing your money in them.

What is a Ponzi scheme?

A Ponzi, HYIP or pyramid scheme are generally promoted as investments, sometimes the people running them will say they are investing in the Stock Market or selling a new hot product or on this forum they will say they are investing in Bitcoin or Mining.

The truth is they are lying and they aren’t investing in anything.

The way Ponzi scheme works is the people running the scheme will ask for an investment and offer a return on that investment, but because they aren’t making any money (by selling something for example) the only way they can pay the interest is by using the money invested.

So for example;

The promoters offers to give a 10% return per month on investments of $1000.

Someone invests $1000 and waits a month.

The promoters takes $100 (10% of $1000) of the original $1000 and gives it back to the investor.

The investor is happy because it seems to be working.

But all the promoter has done is used some of the original $1000 to pay the interest.

So now the promoter has $900 of the original $1000.

If the promoter keeps paying interest on the $1000 he will run out of money in 9 months, since they have already paid the first month interest.
For the scheme to keep working the promotors needs more money from more investors. If no one else invests, the scheme will fail.

At this point though, the promoter will generally ask investors to tell their friends or make posts on forums telling people it works, because the more people who invest the more money there is to pay the interest.

But all Ponzi schemes fail eventually, either when the promoter runs off with the money or the money runs out.

This is the harsh truth of Ponzi schemes.

So why do people invest in them?

Because some people don’t know it’s a scam.

But there are other people who will invest even when they know it’s a scam because if they get in early they can make money.

For example;

If someone invests $1000 and the scheme runs for a year, they will get 12 payments of $100 (10% per month for 12 months) so they will now have $1200. They would have made $200 profit.

But it’s extremely risky since no one knows how long the scheme will last or if the promoter will continue to pay the interest.

Most people have heard of Bernie Madoff who ran a billion dollar Ponzi scheme. The people who invested with him early would have made a good return on their money, but the people who invested near the end would have lost it all.

Ponzi schemes are extremely risky and most people will lost their money.

It’s up to you to decide if the risk is worth it, but be careful.

[1715267230]

1715267230

[Surger]

bitcoin prize go to deep
people want recover their money
and they look for new way for earning money
because of this ponzi's are populer this season

[plock]

bitcoin prize go to deep
people want recover their money
and they look for new way for earning money
because of this ponzi's are populer this season

True, but people should understand the risks, since they will probably lose any money they have invested which will make their problems worse.

[plock]

Ponzi schemes are extremely risky and most people will lost their money

If ponzi profit is 10% like in your example, only last 10% btc Investors will lose their money.

Ponzi is very good if invested early in an "honest" ponzi.
I made over 12 btc in varous ponzis since weeklyponzy showed up. Just make sure to understand mathematics of growth.

Not true.

If 10 people invest $1000 each and the promoter runs off with the money, everyone loses their money.

And even if the promoter pays out interest, they will have to make 10 payments before the investor breaks even.

If people want to invest, it's their money they can do what they want with it, but there is no such thing as a honest Ponzi; they are all scams.

[nickxrod]

Yes we know ponzi's are scams. But there is money to be made if you ride the train early. Thanks for the warning but most of us know what were doing those that don't lose money just as they would on a dice site.

[plock]

But there is money to be made if you ride the train early.

Again this is not true, even if you invest early, you can still lose if the promoter runs off with the money or if they don't pay back more than what was invested.

Like I said before, if people want to invest in Ponzi schemes, its their money. But this thread is for people who don't know the risks involved in Ponzi schemes.

For people who read this and are on the fence about investing. People will tell you money can be made if you're fast, others will tell you their Ponzi is "honest" but the truth in both cases is they're lying. They need more people to invest so they can make money before the scheme fails.

They want you to be the one that loses your money and not them.

[nickxrod]

Although I agree with some points I disagree with others. Unfortunatly when risks and gambling is involved, SOMEONE has to lose money. Not everyone can win. Its the same with a dice site. Yes of course they can run off early, but like many people know if you ride the train early there is money to be made at the start(for the investors) and big money for the site in the middle. Of course people will lose money but thats what happens in order for others to make money.

For example a dice site. Someone has to lose money for the site to get profit and the owner to get a payday. It sucks but someones gotta lose.

[5awyeR]

But there is money to be made if you ride the train early.

Again this is not true, even if you invest early, you can still lose if the promoter runs off with the money or if they don't pay back more than what was invested.

Like I said before, if people want to invest in Ponzi schemes, its their money. But this thread is for people who don't know the risks involved in Ponzi schemes.

For people who read this and are on the fence about investing. People will tell you money can be made if you're fast, others will tell you their Ponzi is "honest" but the truth in both cases is they're lying. They need more people to invest so they can make money before the scheme fails.

They want you to be the one that loses your money and not them.

problem is this "early" end very quick and You wait too "long" to jump out of the train  
btw the train 

https://www.youtube.com/watch?v=3MLp7YNTznE

[Tschai]

Why join/consider a PONZI...when you can BUY Bitcoins now for approx 200$!!!!!!!!???

PS: I love too see retarded people loosing their money on an obvious SAM
PS: I hate to see retarded people starting an obvious SCAM and scamming retarded people

[plock]

SOMEONE has to lose money

This is not true either.

Investing is not a zero sum game where someone has to lose for someone else to gain.

Any investment should create value, when their is no value created then that investment is a scam.

Even when someone plays at a dice site they are getting value from playing.

While they might lose money they may win and it's the risk they enjoy, the value is the enjoyment and excitement they get from gambling.

If gambling was truly a zero sum game which created no value, then no one would play.

People don't put a pile of money on the ground and burn it because that does not create value.

[plock]

If ponzi profit is 10% like in your example, only last 10% btc Investors will lose their money.

Yes, if you are stupid and dont understand basic math or get greedy (reinvest)  you will lose.

LOL

[Snail2]

Not true.

If 10 people invest $1000 each and the promoter runs off with the money, everyone loses their money.

And even if the promoter pays out interest, they will have to make 10 payments before the investor breaks even.

If people want to invest, it's their money they can do what they want with it, but there is no such thing as a honest Ponzi; they are all scams.

There are honest ponzi games. If the operator declares that his/her game is a ponzi and the last investors will lose money, then every participants will know what going to happen and then they can  invest accordingly. Sites where the operator babling about external profit sources and investments are the really dangerous ponzis.

[johny08]

I am doing more some little gambling on dice or small games as a classic ponzi. Warning on ponzi is like warning on cigarettes. Addictive and no fun at all.

[plock]

If the operator declares that his/her game is a ponzi and the last investors will lose money, then every participants will know what going to happen and then they can  invest accordingly.

What happens if the operator pays interest but stop just before the first investor breaks even?

In that case everyone loses, including people who invested first.

There is no way to know the operator isn't going to run off with the money before paying interest and no way to tell if the people claiming to be paid interest are not the operator or working with the operator.

Just because an operator is open about the scheme being a Ponzi doesn't make the scheme honest or any less risky.

The truth is that some time in the future the scheme will collapse and/or the operator will run off with the investors money.

A "honest" scam artist is still a scam artist.

[Snail2]

What happens if the operator pays interest but stop just before the first investor breaks even?

In that case everyone loses, including people who invested first.

There is no way to know the operator isn't going to run off with the money before paying interest and no way to tell if the people claiming to be paid interest are not the operator or working with the operator.

Just because an operator is open about the scheme being a Ponzi doesn't make the scheme honest or any less risky.

The truth is that some time in the future the scheme will collapse and/or the operator will run off with the investors money.

A "honest" scam artist is still a scam artist.

If the operator is a crook then of course everybody going to lose. But that can happen with pretty much everything if money gets involved.
Everybody knows (or should know) that a ponzi scheme going to collapse sooner or later. However if the participants know that they are "investing" into a (honest) ponzi instead of thinking that they've invested into some sort of trading or whatever business operations (hidden ponzi) then they know what can they expect and plan accordingly. I they still willing to gamble that's their responsibility.
BTW you are right on that this "honesty" is only a limited kind of honesty and should be used as "relative honest in comparison with some others" .

[fox19891989]

bitcoin prize go to deep
people want recover their money
and they look for new way for earning money
because of this ponzi's are populer this season

Yes, but they can short or dump BTC on the exchanges to make money. Holding is losing money, BTC is currently bearish, we had better not play ponzi .

[kuusj98]

bitcoin prize go to deep
people want recover their money
and they look for new way for earning money
because of this ponzi's are populer this season

Yes, but they can short or dump BTC on the exchanges to make money. Holding is losing money, BTC is currently bearish, we had better not play ponzi .

People are playing ponzi because they are desperate. They see the Bitcoin value drop and in panic they invest in these stupid things like Ponzi scene's..

[sethminer14]

Yep. Everybody took huge hits because of this Bitcoin fall. Now They are desperate.

[michietn94]

Yep. Everybody took huge hits because of this Bitcoin fall. Now They are desperate.

Even bitcoin fall, I never invest into ponzi.
Better gamble it away

I found a ponzi script on GitHub, one of all ponzies posted in this forum use that

Since bitcoin price is down, ponzi overhelming it

People are playing ponzi because they are desperate. They see the Bitcoin value drop and in panic they invest in these stupid things like Ponzi scene's..

If they keep investing into ponzi, hope they are not commit a suicide if something gone wrong 

[FanEagle]

It's so awful that this year is started full of ponzi's and more over, the bitcoin value is like falling like a rock in the deep water.