There are many sites that claim that they would help you make money. But one recurring factor is that most of these sites make only one person money – the owners.
What should be your approach towards investing knowing that the possibility that you’ll lose your funds or end up enriching a scammer? BTCprofitsystem is promising a lot so in this post, we shall take a peek at the background of the site with the view to ascertain if this is your lucky break.
What is BTCProfitSystem?
This is a site that promises the users that they could earn a lot of money by participating in its ponzi scheme. It went further by giving the $12 million figure as target that could be earned by a participant who needs to recruit people to earn.
In practice, the participants are expected to recruits 5 persons each and each of those persons would make deposits of $11 before the participant would earn $1 from each of the deposits. This means that when the recruited participants have deposited some $55, the recruiting participant gets paid.
Interestingly, the company earns $1 from every single transaction that goes on in the site. When a participant makes a deposit, they earn $1. When another participant gets paid, they earn a dollar. They claim that all the $1 payments would enable them maintain the server and so on.
While answering the question on what they’ll do with the multiple $1 payments they’re skimming off people, they responded.
“Ahahahaha! Than amount is NOT going to be used just to “chill out”, but also reinvested on BTCPS:-Servers
– Maintenance / Improvements
– Marketing!!!! → we are going to dedicate a huge amount of our commissions to promote the network, facilitating all the GOLD members to maintain a PASSIVE INCOME and get the BTCPS bigger and bigger!”
Corporate Scammers Prefer Ponzi
There are a lot of scams going on in the cryptocurrency space. In fact, hundreds of thousands of dollars are lost daily to scams, least of which are ponzis. The era of ponzi in the industry is supposedly over but what we have seen is resurgence as interest in cryptocurrencies has increased.
In understanding ponzi scams, it is important to know that they are practically not sustainable because the number of people that could be deceived to join it is limited.
Another issue to bear in mind is that the main beneficiary of this type of scam is the ‘inventor’ or owner of the scheme and their cronies who would be on top of the pyramid receiving most of the funds the participants contributed.
In other words, it is a typical get-rich-quick scheme designed to enrich the owner of the site. Others contribute funds with which the owner advertises their scam. They also contribute funds which he pockets for doing nothing.
Unfortunately, ponzi scams do not end well because when the recruitments dry up, so would the funds. The main losers would be the later participants who may not earn a dime before the scam crumbles.
Appeal To Greed
Scams thrive because the owners are aware that there are people who are not informed about the risks associated with investments. The Securities and Exchange Commission in its site advised investors on the need to be educated on the risks associated with their investments.
According to SEC:
“Fraudsters rely on the sad truth that many people simply don’t bother to investigate before they invest. It’s not enough to ask a promoter for more information or for references – fraudsters have no incentive to set you straight. Savvy investors take the time to do their own independent research.”
Potential High Income Claim
The site states that participants have the potential of earning up $12 million. This is practically impossible to accomplish and the operator of the site is aware of this. The need to entice participants to recruit people to enrich the owner of the site is the reason why such huge amount is bandied.
Even with all the advertisement and promotional effort of the scheme, the only person that stands the chance of making meaningful wealth from this scheme is the site owner and his cronies who are at the peak of the pyramid.
Just think about it; there may be thousands of affiliates promoting for and contributing their funds for the benefit of one fraudster who just set up a site to deceive many of the uninformed that join as participants.
Is Satisfaction Guaranteed?
Even though $11 may seem paltry, remember that you’ve just donated to a stranger and many people you would directly or indirectly recruit would donate to the same fraudster that rendered no service to you except creating a channel through which thousands would be defrauded.
The $1 you’re earning may add up after several levels of the matrix, in which you may have recruited hundred, but is it worth it that you helped a fraudster defraud thousands of people just for a profit of a couple of hundred dollars or less?
What we have seen over the years is that there are many people willing to promote fraudulent schemes such as this because they’re focused on the immediate gain they would derive. What they failed to understand is that they are just helping criminality to thrive.
At the end of the day, the ponzi owner goes home with millions of dollars after pulling down the site when recruitment peters out. They’ll even move on to a new scam after gaining thousands of $11 deposits.
Although everyone is free to pursue their investments however they deem appropriate, it is immoral to help fraudsters whose objectives are self enrichment.
Irrespective of the claims made by this site, what is obvious is that ponzi scams are primed to fail after enriching their founders. Like in gambling, the real winners are the house. This is why the owner of this site would not reveal their identity but has promised the participants pie in the sky.
As a rule, ponzi, pyramid schemes and high yield investment programs are classified as scams because they steal from many to enrich few. These sorts of investment must be avoided by serious investors.
A good investment must be regulated as safety net for investors to make sure that their funds are not misused. You can check our top recommendation where you can take advantage of a social trading platform and grow your funds.
Are you a participant at BTCProfitSystem? Please share your views using the comment box below. You can also share this post to help people know the risk involved in ponzi and pyramid scams.