Topic: pirateat40's end game - page 4. (Read 8222 times)

Don't forget someone can just hack into GPUMax with lots of people's miners are pointing there, then pointing everyone's miners towards a private server, essentially like a big pool..

Blatant, brazen scam through and through. A rating on #bitcoin-otc is the perfect 'in' and the ratings would snowball from the participants. A lot probably know it deep down, but will defend it publicly until they're ready to take their principal + "gains" out (of course they never are). The participants in pyramid schemes are just as guilty and will get what they deserve. Fractional monetary expansion always collapses.

The lack of transparency is completely anti-thetical to the principals of bitcoin. I trust bitcoin because the blockchain is a fully visible ledger.

If there are so many ways, why dont you list some ways that explain why what pirate does is more profitable than borrow money from a bank and buying coins with it? Assuming he'd even still need to borrow , at this point one would expect Pirate to have earned enough to finance his own operation without needing external capital. I dont see his requirements for external capital diminishing though, he seems to need ever more which by itself should raise red flags. If whatever he does is indeed profitable youd expect by now he'd need less capital to finance whatever he is doing.

The same goes for GPUmax. Im sure you will say there are many reasons people will pay 150%, but I dont see them; even laundering coins wouldnt yield those kinds of returns, particularly not  for bitcoins which are inherently difficult to trace. More importantly, I dont see anyone offering anything remotely close to those prices anywhere else besides gpumax. FWIW I just auctioned off 1M shares, were people falling over themselves to buy them at 150% ? Nope. They bid roughly what they are worth. Why would someone, anyone prefer to buy them at gpumax for 50% more?

Im all for not accusing anyone of scamming without proof, but there is a sticky "Trust no one" on this forum for a reason. When something sounds too good to be true, its not unreasonable to contemplate the possibility it is indeed not true. Maybe there is a business model behind it that Im too stupid to figure out, but until someone gives me a credible explanation, Id rather distrust pirate then my own ability to reason.

I admit there are ways that he can make this money legitimately. What I don't understand is why would he pay so much over what others are paying in interest. It seems like there is so much demand to deposit money with him that he has to artificially limit the deposits using a referral system. I think he could easily reduce the rate from 7% to 5% and still have enough in deposit to accomplish what he's doing. 5% interest a week is still far more than what other banks are paying. So why would he leave 2% on the table?

If you believe that to be the case, how can YOU make money off of that scenario?

How much would you pay for all that hashing power? nvm, what do people pay for all that computing power in a year?

PEOPLE, change your perspectives.

Let me try another method. Why would I pay you 2¢ for 1¢?  Because pennies before 1982 are worth 3¢.

There are many ways Pirate can pay what he pays in a limited economy. Which this is. Why do people like to jump to the negative reasons rather than the possibilities? People outsmart themselves often.

Don't assume the negative because of an assumption. I've said this a lot lately. Assumptions often lead you where you want to go.

Prepare for the bad and hope for the best.

More importantly, why did you go negative rather than come up with a positive way pirate could accomplish his system.

What Ifs are never ending.

What If he is the government overpaying for something? Nah... The government wouldn't waste the money. Would they?

If you are really interested tho... Do your due diligence on the company.

Put up or shut up.

So this is speculation, opinion, and not FUD, and then you're talking about a scam. You also seem to feel no need to link to the prior discussion in the newbies forum, which suggests that your intentions are not so much to spark discussion as to stir up shit.

Also, every post you've made has been related to pirate, so you seem like more than a curious newbie. This is just speculation, and my opinion, and I'm not trying to spread FUD here, but you sound like a bit of a sockpuppet.

I'd like to start a discussion about pirateat40 and his 2 projects: GPUMax and Bitcoin Savings & Trust. The following is pure speculation on my part, as I have no proof of anything. I just wanted to hear other people's opinion and am not trying to spread FUD.

pirateat40 may be just a very smart person that happened to be working on 2 very ambitious projects, but something just doesn't seem right about him.

Who is buying mining shares for PPS*1.4? Why would anyone do that? Pool hopping is not that profitable anymore, right? Why doesn't pirate disclose the reason for these purchases. How is pirate making >1% a day the money he borrows? If he really is legitimately making so much money, why give 7% interest/week when his closest competitor is giving 3% interest/week. And most banks have money with pirate to be able to pay out that much. There's ton of people waiting to give him money, so wouldn't the right business move be to lower interest rate and make more money? I've learned that if something seems too good to be true, it generally is. Could this be a long con? Or is he actually making honest money with these 2 projects?

Here's what I'm getting at, what if his end game is to kill bitcoin? What if the fed decided that they want to put an end to bitcoin before it becomes a bigger threat. Think about it. If you were trying to kill bitcoin, what would you do? You'd want to do a 51% attack to shatter everyone's confidence and at the same time pull off the biggest bitcoin heist ever. If mining hardware costs $1 per mhash, to match the total network hashrate of 11 thash, you would need to spend $11 million. Wouldn't GPUMax be the cheaper and smarter way to do the 51% attack? You need to convince 51% of the network to use it. PPS*1.4 would do it. And to convince people that it's not malicious, only allow purchases to mine at specific pools. But what's to prevent pirateat40 from one day use all that mining power maliciously? So how much does it cost to pay half the network 40% more on the earnings 1/4 of the time (i'm assuming there's only public work 1/4 of the time)? 7200 btc are mined a day... so 7200 * 1/2 * .4 * 1/4 = 360 btc or just $1800/day. Run that for a year, and it's only $657,000. And that's if he has half the networking hashrate, which hopefully is not close to yet. So this is a lot less than the $11 mil that would be needed to buy mining hardware. Trick bitcoin miners into attack their own network... brilliant!

So now how do you make 360 btc a day? You can either spend your own money or start a HYIP. So build up bitcoin-otc to have people trust you then start lending money at 1% interest a day and use people's deposit to pay the interest and the money needed to keep purchase on GPUMax. Keep growing the total loan amount so you have enough money but keep the growth contained so that you don't pay too much interest. And build up hype by making it hard for people to deposit money with you.

This scam can probably last until he gets 51% of the mining power. Then use whatever money is left in the BTCST accounts and do a 51% attack against mtgox and other exchanges at the same time. Then disappear with all the money. What do people think? Far fetched or possible?

EDIT: previous discussion in newbies forum: https://bitcointalksearch.org/topic/pirateat40s-end-game-77457