Amazing! Thanks for the answers. It sounds like marketing pyramid? Herbalife or something like this? But how should someone so stupid to get in into a such so clearly bad scheme?
It's kind of hard to understand if you haven't experienced the psychology. On one level, you know it's a scam but think that you'll be able to get out on time or withdraw your principle and only lose interest. But on another level, you manage to convince yourself that maybe it's the real deal and you are in on the secret to amazing wealth.
Topic: What is ponzi? I give 0.05 btc to the best answer - page 2. (Read 1830 times)
But how should someone so stupid to get in into a such so clearly bad scheme?
Starts with g and ends with reed.
Amazing! Thanks for the answers. It sounds like marketing pyramid? Herbalife or something like this? But how should someone so stupid to get in into a such so clearly bad scheme?
It's also important to understand that Ponzi operators are very concerned about being identified as operating Ponzi schemes so they will frequently take actions that are against their own interests (such as turning down deposits) just to look less like a Ponzi scheme. The key signs to identify a possible Ponzi scheme are:
* A promise of returns well above market rates. (If it sounds too good to be true, it probably is.)
* Consistent returns regardless of market conditions. (If it sounds too good to be true, it probably is.)
* No actual evidence of any legitimate investment activity.
* No actual known business model. Descriptions are usually vague and non-committal, sometimes contradictory. Operators will frequently say things like "you're getting the idea" or "something like that" as a way to allow people to convince themselves that they know what the business model is, with each investor having their own ideas.
* Testimonials from people who made money without any explanation of what the actual source of that money was.
* Pressure not to withdraw or encouragement to re-invest proceeds.
* Pressure to spread the word and recruit more investors.
* No plan in place for how losses, should they be incurred, will be proven to be legitimate investment losses or how they will be recovered.
* Long-term increases in the amount of money "invested" despite no known reason to need high-interest loans.
* A promise of returns well above market rates. (If it sounds too good to be true, it probably is.)
* Consistent returns regardless of market conditions. (If it sounds too good to be true, it probably is.)
* No actual evidence of any legitimate investment activity.
* No actual known business model. Descriptions are usually vague and non-committal, sometimes contradictory. Operators will frequently say things like "you're getting the idea" or "something like that" as a way to allow people to convince themselves that they know what the business model is, with each investor having their own ideas.
* Testimonials from people who made money without any explanation of what the actual source of that money was.
* Pressure not to withdraw or encouragement to re-invest proceeds.
* Pressure to spread the word and recruit more investors.
* No plan in place for how losses, should they be incurred, will be proven to be legitimate investment losses or how they will be recovered.
* Long-term increases in the amount of money "invested" despite no known reason to need high-interest loans.
"A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation." - Wikipedia
Assuming you want more money, you should avoid Ponzi schemes because you are more likely to lose money than to gain money.
1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ
Assuming you want more money, you should avoid Ponzi schemes because you are more likely to lose money than to gain money.
1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ
Thanks mate. Is it a kind of piramyd schema? Sorry for did not search it on Google, but I am in a really slow Internet now in my mobile (I am far away from civilization right now) I'll give you the 0.05 and if you can say more about this fraudulent schema I glad you. Thansk
Ponzis are not the only ways to get ripped of. You already mentioned pyramid schemes. Also beware of "bets", especially if they are not enforceable or the escrow is corrupt.
In general, whenever you invest in a business, ask for a business plan or the specific mechanism by which the returns are generated. (Alternatively if you're an expert in the business you already know what's possible and what not) If there is no break down of numbers available, then it's probably a scam.
Is it a kind of piramyd schema?
Generally in a pyramid scheme the participants are aware that they are being paid a percentage of the funds that they recruit. Additionally, only those who successfully recruit investors "earn" any funds.
With a Ponzi, the participants are typically mislead to believe that they are "investing" in a venture that is earning profits for all involved. The early investors spread word of the opportunity on the belief that it is legitimate and successful. Someone operating a Ponzi will typically try to discourage anyone from withdrawing funds, and will encourage them to "re-invest" any reported earnings. When a few people attempt to withdraw small amounts, the Ponzi operator will pay out these amounts from the total funds collected, regardless of who they came from or whether the person withdrawing recruited anyone else. These early small payouts give an impression that the investment is safe. Eventually more people will want to withdraw funds than the Ponzi operator has available. At that time, he must shut it down and it slowly becomes clear to everyone involved that they will not be getting any further funds back. It is also possible for the Ponzi operator to run off with the funds once they have collected a large amount even if nobody is requesting to withdraw their funds yet.
"A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation." - Wikipedia
Assuming you want more money, you should avoid Ponzi schemes because you are more likely to lose money than to gain money.
1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ
Assuming you want more money, you should avoid Ponzi schemes because you are more likely to lose money than to gain money.
1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ
Thanks mate. Is it a kind of piramyd schema? Sorry for did not search it on Google, but I am in a really slow Internet now in my mobile (I am far away from civilization right now) I'll give you the 0.05 and if you can say more about this fraudulent schema I glad you. Thansk
"A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation." - Wikipedia
Assuming you want more money, you should avoid Ponzi schemes because you are more likely to lose money than to gain money.
1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ
Assuming you want more money, you should avoid Ponzi schemes because you are more likely to lose money than to gain money.
1NtTPVVjDsUfDWybS4BwvHpG2pdS9RnYyQ
What is Ponzi? What is this and why should I keep distance (or not) of it? Thanks. Plz put your address with your reply. 
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