So is this another warning that we should avoid sites paying improbable rates of interest? Do they ever repay the capital invested?
Its just my assumption based on a few issues people reported recently and the tags on blockchain.info. Most ponzis run on bad software anyway, because they assume a "sending address". Thats not given on the protocol level and makes them impossible to work with shared wallets. I further assume that most running these ponzis do not have the knowledge to have actually written the software themselves, but rather buy pre made scripts. If such a script was sold that works on 0-conf transactions, these long chains can easily develop due to the high amount of low payment TX needed to keep the ponzi going. It might even be an attack against the ponzi itself, by exploiting the fact that the script does not require a confirmation.
