Topic: Bitcoin Rising, Scams Rising - page 13. (Read 2655 times)

Yeah this is exactly what i was thinking, there will always be while they can get profit out of it. Of course it's truth that the higher the price the more people that is drawn towards here and those are more possible victims and for that reason more will move and come here to try to get some easy money.

Have to be really careful on who to trust in this life sadly.

Regardless of whether bitcoin is growing or not there are a lot of scammers.Especially a lot of them where the money is spinning.And there is a lot of money in cryptocurrency.In the telegram I'm just tired of seeing messages from different scammers.They literally write every day.Therefore need to be vigilant always.

that is a major problem that the crypto industry are facing now, it is not about the bitcoin it is now about the people who was using this kind of industry in their own benefits, if the government can still had nothing to do with it then it might really affect the image over the years .

Scams have existed since the birth of the internet, even before it. I don't really expect scams to go away regardless of the market situation, but yea, in bullish times, scams tend to be more numerous and spread out due to the number of inexperienced investors going into the cryptocurrency markets. Keep your eyes peeled at all times, regardless of the price of bitcoin.

In January 1920, Ponzi started his own company, the "Securities Exchange Company," to promote the scheme. In the first month, 18 people invested in his company with a total of $1800. He paid them promptly for the very next month, with the money obtained from the newer set of investors. He set up a larger office, this time in the Niles Building on School Street. Word spread, and investments came in at an ever-increasing rate. Ponzi hired agents and paid them generous commissions for every dollar they brought in. In just one month's time, between February and March, 1920, the total amount invested had risen from $5,000 to $25,000 ($62,000 to $309,000 in 2017 Dollars, respectively). As the frenzy began building, Ponzi hired agents to seek out new investors in New England and New Jersey. At that time, investors were being paid impressive rates, which subsequently encouraged others to invest. By May 1920, he had made $420,000 (~$5 million in 2017 Dollars). By June 1920, people had invested $2.5 million in Ponzi's scheme (almost $30 million in 2017). By July, he was raking in a million dollars per week and rising. By the end of July, he was approaching a million dollars per day.

He began depositing the money in the Hanover Trust Bank of Boston (a small bank on Hanover Street in the mostly Italian North End), in the hope that once his account was large enough he could impose his will on the bank or even be made its president; he bought a controlling interest in the bank through himself and several friends after depositing $3 million. By July 1920, he had made millions. People were mortgaging their homes and investing their life savings. Most did not take their profits, but reinvested. Ponzi's company meanwhile had set up branches from Maine to New Jersey.

Even though Ponzi's company was bringing in fantastic sums of money each day, the simplest financial analysis would have shown that the operation was running at a large loss. As long as money kept flowing in, existing investors could be paid with the new money. This was the only method Ponzi had to continue providing returns to existing investors, as he made no effort to generate legitimate profits.

that is a major problem that the crypto industry are facing now, it is not about the bitcoin it is now about the people who was using this kind of industry in their own benefits, if the government can still had nothing to do with it then it might really affect the image over the years .