Yeah, just like a "real" bank...
They are the biggest legalized HYIPs and PONZI scammers of all. And did I mention legal?
If everyone withdrew their cash from Barclays or BofA... they would be fcuked.
How does a bank work?
Gets your cash, invest in stocks (or lose it), pay you a bit (like a shitty 1%/year) and get more people to their PONZI scheme...
It looks like we live in a PONZI age, banks, central governments... but those, no one says they are scammers...
They are the biggest legalized HYIPs and PONZI scammers of all. And did I mention legal?
If everyone withdrew their cash from Barclays or BofA... they would be fcuked.
How does a bank work?
Gets your cash, invest in stocks (or lose it), pay you a bit (like a shitty 1%/year) and get more people to their PONZI scheme...
It looks like we live in a PONZI age, banks, central governments... but those, no one says they are scammers...
Well, banks have this little thing called insurance. In the US it's called FDIC, and your account at a bank is insured for up to $250k. Who guarantees the deposits at this ponzi thing? Nobody.
Yes, there is fractional reserve. No, it's not the same as a ponzi.
Quote
A Ponzi scheme is a fraudulent investment method that pays off early investors with deposits from later ones.
Fractional reserve banking is the practice of keeping only a fraction of a bank's demand deposits on reserve, while lending out the rest. The reserve requirement is how central banks limit the amount of money that can float around in commercial banks.
Fractional reserve banking is the practice of keeping only a fraction of a bank's demand deposits on reserve, while lending out the rest. The reserve requirement is how central banks limit the amount of money that can float around in commercial banks.
OH how I wish the HYIP/Ponzi crew never heard of Bitcoin.
