Is there any risk that the new savings thins (4% per year) is one of those ponzi schemes?
This is what wetsuit has said
Simply buying cloud mining power will most certainly not be profitable for users because they usually do not hedge against price and difficulty increases. We would prefer to manage everything ourselves and just give a fixed return to the user so that the investment is truly passive and risk-free for them.
And this when i asked,
With 4.08% interest annually, it's higher than interest on bank (around 2-3% annually).
Is there any assurance if something bad happened (hope not) with our money?
We plan to expand quite conservatively and do hedge against the bitcoin price rising too quickly or the mining difficulty jumping to ensure that we always make a profit in bitcoin (not only in USD). This way, growth is slower but profits are consistent and fairly predictable.
If you mean that we could run away with your money, that is always a possibility but we probably stand to make more by running a honest business than by scamming. Also, it is a bit difficult to "run away" with a million dollars+ worth of equipment weighing a few tons. It wouldn't be too difficult for someone to track us or our miners. We have already invested over 1,000 bitcoins in the mining operation and unlike most other cloud mining service we do provide actual proof of mining.
The final decision still in your hand, but from his answer, i can say wetsuit is a honest guy.
Really? Ok, ask Wetsuit to show you the regulatory approval for him to "offer" banking services to the public. There are several applications that needs to be done to operate as a bank. { Deposits / interest / withdrawals ....}
Where is the approval for a federal or state charter? All insured banks must comply with the capital adequacy guidelines of their primary federal regulator (Federal Reserve, FDIC, or OCC).
These regulations are put in place for people to show that they have capital to support its risk profile, operations, and future growth even in the event of unexpected losses.
If he says that he does not operate as a bank, then other regulatory approval is needed to operate a business where you pay dividends or "shares" or interest on deposits. ^hmmmmmmm^
