The Bitcoin HYIPs arrive, and are flourishing. The cryptocurrency movement seems to have given the HYIPs a perfect system of money to use, in an irreversible Bitcoin system. This is not necessarily a bad thing if you know what you’re doing. These will appeal to Bitcoin gamblers and others who would like to take their chances. Do NOT put in more than you can afford to lose.
HYIPs, or High Yield Investment Programs, have been around since the early days of the web. For those who are unfamiliar, HYIPs are essentially Ponzi schemes that pay out their earliest investors with the money from the latest investors. After a certain profit level is reached, the site closes shop with the latest investors being the bag-holders. By adjusting the amount of returns investors can get, the program can run for a pretty long time.
Don’t think though that the people who put money into these schemes are ignorant of how it operates. They know pretty well how things work. However, they take a gamble on being one of the first investors in the scheme, so they get paid out and are not the bag-holders. This isn’t too different from people who participate in crypto-currency pump and dump schemes, except on a different time-scale. If you know what you’re doing and the risk and gamble you’re getting into, HYIPs can be a fun way to gamble online. I’ve personally known people who were into this hardcore back during the mid-2000s when these were much more popular and even though they lost on a lot of them, they almost always made a sizable profit every month.
With Bitcoin more and more mainstream, it seems to be the perfect vehicle for HYIPs. There are no chargebacks with Bitcoin, so the operator is safe. I see Bitcoin going more mainstream with HYIP operators. If you are ever on the Bitcoin PTC sites, you’ll begin to notice a lot more ads for these HYIPs. It is good for the clickers as it tends to increase the number of ads available.
Be very careful though, since these sites can easily disappear overnight even before making a single payment instead of the traditional norm of paying some customers first, getting some reviews, and then closing shop (something about honor among thieves?) It should go without saying that if you’re “investing” in a Bitcoin HYIP, you’re doing it wrong. Think of it as gambling and nothing else.
Photo Credit: Home of Chaos