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RE: The ShitConnect Ponzi Train Can't Be Stopped (The Ugly Truth Inside)

in #bitconnect6 years ago

As far as the illegality of a Ponzi scheme there is a legal definition for it. Amway and some of the others you mentioned don't meet that definition and some have already survived legal attempts to take them down for it. This is a important distinction because the lack of being technically a Ponzi scheme or a "scam" does not mean it is not a horrific investment (Amway ect) or any other name you want to give it. Death by Ponzi, death by scam, death by insider trading, death my what ever. Fact is your dying.

For Example:

In the creation of new drugs, small drug companies issue stock to pay for the research. Investors buy in hopes of being part of the next blockbuster or whatever. You think the company knows there is no way in hell they are going to complete the work needed on the drug before they need to do another stock issue? I've seen companies do stock issue after stock issue after stock issue. Every time providing all this grandiose BS about possible sales, time lines ect. Perfectly legal and you and your money have just been parted.

My Point?

Its all about taking your wealth one way or the other.

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Amway, Herbalife......etc are not Ponzi Schemes. They are quasi legal pyramid schemes. They always fall a foul because if the primary mechanism for people to make money is the recruitment of others and not the sale of a tangible product or service then it is considered an illegal pyramid scheme. The MLM companies make their distributors fill out retail sale compliance forms to pretend like people are selling the products. In reality the top distributors are fabricated by the companies and rarely ever actually sell any of the product. They sell the dream.

I agree with you on the venture capital stuff. The distinguishing factor is if they are actually working on anything. If they are writting some kind of code or mixing some chemicals or something then they could say they were working on something. For the investor they have to try to do their research as best as possible to see if it is a good investment which is a lot of times hard.

But yeah I have been saying since 2012 that Twitter would never be profitable. But it made a bunch of venture capitalist money and probably a lot of people involved with it figure it won't be profitable either. I don't invest in stuff that has no real path to profitability for companies.

I don't feel that it is taking someone's wealth if there is a real product and you are sitting there making the decision to buy it.

So and so computer for $600. If it is a good deal and it is going to help you do what you need to then buy it and no one is ripped off. You could use that $600 laptop for an infinite amount of entertainment, editing videos, making graphics, talking to friends and family. Real products aren't as much of a losing proposition when purchased.

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