I'm wondering anyway why one needs Occam's razor to understand that 7% per week, or 3,300% per year, or anything above 10% a year means Ponzi? You don't need Occam's razor to state the obvious.
10% per year is the low average for fiat money in actually solvent banks (singapore, georgia (the country), mongolia, etc). 15% is not unheard of.
That's beside the point, however, since most bitcoin lending businesses work on a rate similar to "payday loans" and still make yearly interest in the 100s of %s. Given an average of 3.5% per week (not an unusual rate), compounded weekly, that's
498.3% APR. So, by your definition, all bitcoin lenders are ponzis, yes?
Also, from actually reading pirate's original thread, I can clearly see a period after he went invite only and before any of the pirate pass programs popped up, wherein the bitcoin price soared over $6 and people were withdrawing like crazy to trade for fiat while the price was good. Even after having paid 7% to many accounts, some of which are particularly huge, I don't see anyone complaining that they weren't able to get all their money. I note small delays at times, but never anyone who wasn't paid in full, and never any actual customers who complained.
Recently, one whole person decided to cash out their account because "they had a bad feeling" with no facts or justification, and now everyone is back to foaming at the mouth of how it's a ponzi. If it
is a ponzi, I have to give mr.pirate good credit for keeping it going this long even against adverse conditions.
I don't know what pirate does, but I've never once seen any instance of an issue that would cause me to question his solvency. Nothing but rumors and foaming about how it has to be a ponzi because his rate is high.
