2015 The year of the Ponzi, BE WARNED!

[elephantas1]

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.

yeah it seems that this year will be even worse than 2014

[johny08]

oh, its the year of the ponzi. Good to know hahaha

[magicmexican]

Its getting extremely annoying actually. All these ponzi threads should be moved to a new separate section, the 'gambling' forum became a complete joke.

[plock]

Its getting extremely annoying actually. All these ponzi threads should be moved to a new separate section, the 'gambling' forum became a complete joke.

They could make a child board for Ponzi and HYIP. Although I'm not sure if they makes them liable legally, since it could be seen as condoning illegal activity.

[mrhelpful]

They should just close all ponzi threads, or make a sub section. But, then again you cant save everyone on this forum being scammed.

People will do this regardless, only to see small possible profits.

[melwinder]

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.

Is it just me, or does that not make sense?

[BitCoinNutJob]

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.

Great advice, investing in one of these even if early would require you to know enough about the creator to judge that its going to run for a decent length of time.  I doubt there are many people who start these who are worth the risk.

[thompete]

I just hope the ponzi phase gets over soon on bitcointalk. Else, it will get crazy here .

[myohmy81]

IT's real

They all dream to be like Cryptodouble


They will run 

[finlon]

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.

How are the prices affected by more  number of ponzis around ?

[adog]

This fraudulent investment PONZI brings to SHAME Gambling section! Please remove it!

[Kakmakr]

I have burnt my fingers on several different ponzi's over the year, but it's that burning sensation you kind of like
In real life I am quite an adrenaline junkie, so that explains why I get that sensation. ^HeH^

When you get out in time, and you made big profits, it feels great! Then you start to think about all the other people after you, who has to loose for you to win, and the guilt start to eat you up.

For this reason, I donated all my profits from ponzi's to charities. ^Frown^

[CasinoEvolution]

Yes ponzi's are to unpredictable. I wouldn't suggest plaing in their schemes

[uki]

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.

Honest ponzis? an oxymoron, imo. You do not know when the cut off will happen, either you will be one of the lasts to receive something (you then call it honest) or one of many not to receive (usual pattern, you will then call it scam). what else to explain?

[Minnlo]

I just hope the ponzi phase gets over soon on bitcointalk. Else, it will get crazy here .

IIRC, the gambling section was full of ponzi threads as well somewhere around Feb 2014, and the hype died down in a month or so. And it now comes back again, and will probably come back again and again... 

[plock]

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.

Is it just me, or does that not make sense?

I'll try and explain it better.

A Ponzi offers a return of 10% per month.
A person decides to invest $1000.
If the Ponzi pays out for 12 months, the investor would have been paid $1200 in interest.
But they invested $1000, so they actual profit is only $200.

$1200 (interest) - $1000 (investment) = $200 (profit)

But most Ponzi wont last 12 months, most will not last more than a couple of weeks.

Hope this makes it helps.

[tom14cat14]

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.

Is it just me, or does that not make sense?

I'll try and explain it better.

A Ponzi offers a return of 10% per month.
A person decides to invest $1000.
If the Ponzi pays out for 12 months, the investor would have been paid $1200 in interest.
But they invested $1000, so they actual profit is only $200.

$1200 (interest) - $1000 (investment) = $200 (profit)

But most Ponzi wont last 12 months, most will not last more than a couple of weeks.

Hope this makes it helps.

There can be an "honest" Ponzi game. Weekly ponzi has been doing this on his second game now. He lists a deadline so all know when it will end. He tells you it is a ponzi so everyone knows that at the end the people not paid lose. He did not cut and run on the last one. His second round started tonight and he and an API problem. He spent an hour manually entering the addresses. By the time he was done he had over 100 BTC in his address. He could have cut and run, it would have been the perfect time for something like that. Instead he turned the payments back on and paid everyone that was due. It is a form of gambling. Just like Poker you take money from other players. So anyone that wins at poker is scamming the other players by all of the anti-ponzi crowd out there. As long as rules are followed and everyone can see those rules form the beginning there is no scam in my book. It is just high risk gambling. With that said there are a lot of these ponzi's that are just scams and lie to you saying they are investing and you will get this amount for investing, or they cut and run. Those are scams.

[thompete]

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.

Is it just me, or does that not make sense?

I'll try and explain it better.

A Ponzi offers a return of 10% per month.
A person decides to invest $1000.
If the Ponzi pays out for 12 months, the investor would have been paid $1200 in interest.
But they invested $1000, so they actual profit is only $200.

$1200 (interest) - $1000 (investment) = $200 (profit)

But most Ponzi wont last 12 months, most will not last more than a couple of weeks.

Hope this makes it helps.

There can be an "honest" Ponzi game. Weekly ponzi has been doing this on his second game now. He lists a deadline so all know when it will end. He tells you it is a ponzi so everyone knows that at the end the people not paid lose. He did not cut and run on the last one. His second round started tonight and he and an API problem. He spent an hour manually entering the addresses. By the time he was done he had over 100 BTC in his address. He could have cut and run, it would have been the perfect time for something like that. Instead he turned the payments back on and paid everyone that was due. It is a form of gambling. Just like Poker you take money from other players. So anyone that wins at poker is scamming the other players by all of the anti-ponzi crowd out there. As long as rules are followed and everyone can see those rules form the beginning there is no scam in my book. It is just high risk gambling. With that said there are a lot of these ponzi's that are just scams and lie to you saying they are investing and you will get this amount for investing, or they cut and run. Those are scams.

There certainly can , but most of these ponzi sites require no skill to set it up . You just need a script freely available and a web domain, and you could set it up yourself. Now this allows for people to just make a site to scam people. They are paying out fr sometime, and not for most of the time.  They can even skip a few payments, and the comments to claim those txids get buried in the thread.

[plock]

There can be an "honest" Ponzi game.

There are no honest Ponzi, as others have said it's an oxymoron.

All Ponzi are scams.

Just because he has not run off with the money yet, does not mean he won't.

He will run off with the money eventually, this is guaranteed.

So anyone that wins at poker is scamming the other players by all of the anti-ponzi crowd out there.

Again this isn't true, no one is being scammed in poker unless someone is cheating.

It is a fallacy to claim that gambling is a scam because someone loses, as I mentioned in this post.

[@YoeN]

all ponzi is always ended with scam
be carefull dont spent your money