Given the track record of the exchanges, online wallets, Bitcoinica, etc, it seems an inevitability that where a lot of people deposit a lot of coin it will eventually fuck up. So far pirate has had less hitches than pretty much every "legit" Bitcoin service out there, which I find rather amusing given how much people like to acuse him of being the scammer.
I'd rather value a business that builds its own credibility than one that strives for an expedient route to legitimacy, or approval from a direction that isn't valid in the first place. Trust is only good if it isn't abused.
I do not think default would be a concern if one had already earn their investment back in interest payments.
Why not?
Plus, how can it compound if you keep your interest payments?
- Deposit 2000BTC
- Earn 2000BTC from interest
- Withdraw 2000 of total 4000BTC
Your initial investment is doubled and returned, and everything from there on out with the remaining 2000BTC is pure pirate profit
In late 2010, one of my silver trades did very well. So well, in fact, that it gained almost 5,000% (yes, 50x initial capital). Regrettably, on that particular trade, I tripped myself up and lost most of it (still kicking myself - I really wanted that
island). What I didn't lose was my initial investment, having pulled that out shortly after doubling. The rest was play money.
