So...what do you actually do with the money to generate profit?
Basically, what it boils down to is: we (6 of us) each took 400 btc and put it into a fund we don't touch. the coins just sit there. We offer ~2k bonds each week, take the money and invest with pirate. After 28 days, we take the money out and pay each bond holder 1.28 btc. Whatever is left over, we keep. If pirate should happen to default, we'll use the 2400 in our reserve fund to pay on the bonds, giving each person about 25% of their money back. Essentially, we're covering at least 25% of the default.
so to loop back to your original question, we invest with pirate. We, the 6, make money off the premium that people buy the bonds for.
Ok. That's a reasonable answer that makes sense. Thank you.
Of course my next questions is, how does Pirate create profit?
Straddle trades? Some kind of bitcoin options? An event-driven hedging technique?
I'm trying to wrap my head around this and other investments I see on this site, but the answers seem to be long on hype and short on substance. I know that when it comes to investing other people's money and actually generating profits, answers to such inquiries tend to be cagey, but briefly explaining one's strategy doesn't reveal the process. Extraordinary alpha over just about any benchmark merits an explanation. What say you, Pirate?
In his original OP he alludes to what he does, but he will not reveal anything more, even with all the prodding that people have done. So long as he continues to pay as agreed, there isn't a problem. If this doesn't suit one's risk profile, there are plenty of other operations going on. It does grow tiresome to have people continue to post the same FUD about ponzi when there's ultimately nothing conclusive to back it up. I am not saying you're spreading FUD, you asked legit questions that I haven't seen you ask before so they're fair game.
