Even if Pirate can make 10.65% per week (up to what amount? These never scale up infinitely. Actually, at that kind of return rate the limit should be reached very quickly.), it makes absolutely no sense to borrow such huge amounts of bitcoins at several-hundred-percent annual interest rate. He should have gotten a loan in fiat. He says he knows rich investors etcetera. He could have borrowed a million dollars and bought at least 250kbtc when they were cheaper.
And the argument that he can't buy bitcoins because he'd move the market is ridiculous. As if other people acquiring and tying up bitcoins in his scheme doesn't move the market exactly the same way.
Seriously guys, think about the bitcoin ecosystem, and read all the history post of pirate. And think again.
So, Pirate is not motivated by self-interest, but he's a rich kid who's throwing away a fortune to make some gullible bitcoin enthusiasts rich, who would otherwise fall for a get-rich-quick scam? Allow me to not be convinced.
Did I say that?
You did not, but this is what you imply. Not taking a huge profit for oneself and instead distributing it to those who are irresponsible enough to invest in an enterprise that has all the markings of an obvious scam is effectively the same thing as having a shitload of money in the first place and distributing it the same way.
No I did say that if you understand what he does you understand why he need to have such interest rates.
This is bitcoin.
Bitcoin is a very small market/economy.
Bitcoin is an emerging, shoud I say booming economy (GDP likely to be in the hundreds of percents annually, there are signs everywhere that bitcoin is spreading)
Bitcoin a free market, a true one, without any government interference.
All of these make it a scammer paradise (although defenses are emerging), true, but it also make some insane profits possible.
Now I'm not 100% sure (or I would be have all my coins in pirate's), but enough to trust him.
But whatever, time will tell. I'd say that by the end of 2013 we should "for sure"
