But you yourself have said that you don't trust pirate
Where? When?
Did a quick scan of you posts and I stand corrected.
[quote a
that you would not recommend investing in BTCST because it is very high risk and has no transparency, implying there is a real chance that coins invested would be lost.
No, it doesn't imply anything. If you have ever invested before, you know that a company that does not open their books to investors can do any number of things that are bad for the investors including but not limited to embezzlement on small and large scales, late payments, insufficent return on investments, etc.
Just because you think a business is risky, doesn't mean you think it's a scam. What if he were selling drugs? I wouldn't want to invest in that even if I believed he could sell the drugs on the off chance that he couldn't or got arrested. This would be considered a high risk investment.
I've invested plenty, thanks. Sure companies can do plenty that is harmful to investors. But bear in mind that pirates so called investors were really "depositors" rather than "shareholders". They were not buying a percentage of the operation, implying that they have a right to a percentage of future profits.
So it is more similar to making a deposit at a bank for a fixed interest rate, than it is to investing in a company. In this case the only relevant question is "Am I safe against a default?" If we ascertain that the answer is yes, then your concerns are moot.
Management embezzling money? If this does not result in a default, then, by definition, they must have been stealing from the shareholders, not the depositors.
Late payments? A default by any other name.
Insufficient return? Isn't this just another way of saying default (since the exact percentage interest returned was agreed to up front?)
Selling drugs and getting arrested? Boohoo for him. I had no knowledge of this fact and would be no more liable than someone who deposited at a bank who in turn loaned money to a drug lord. Luckily I still get my capital and interest back.
My lack of interest in investing in Pirate is because I don't believe his rate of return is possible to sustain. And I'm right, essentially. He's shutting down afterall isn't he?
Pffft. Any positive rate of return is impossible to sustain in a non-inflationary currency. Someone who invests 1 BTC at 1% weekly interest and allows it to compound will have all 21 million bitcoins after 32 and a half years. Any investment, no matter how small at a fixed positive interest rate no matter how small will eventually grow to exceed the total money supply. The only distinction is how long it takes. By contrast how sustainable is your bet?
