Do Not Fall For Bitcoin HYIP (High Yield Investment Programs). Newbie Warning!
HYIP Scams are All the Rage on Social Media and in Crypto Currency Circles.
The High Yield Investment Programs better known as HYIP target new users of Bitcoin promising huge returns in a short amount of time. The problem is that these are the purest kind of Ponzi scheme available.
What is a Ponzi Scheme?
Examples of HYIP that You Need to Watch Out For.
Why Do People Fall for This Shit?
Ok, I admit that when I was a Bitcoin newbie back in 2014 I did it. Yes I admit it, are you happy now? Everything was going along great for about a week before the payouts started arriving late and then the site disappeared along with .25 BTC. Yes, at the time it was only a little over $100 worth of BTC but it still pissed me off and I vowed to learn about these shady programs.
Imagine all the poor schmucks who lost much more than I did. It must have been quite painful. The worst part is that it makes Bitcoin look bad even though Bitcoin is innocent.
What Can You Do About HYIP Scams?
The next time you see one on Steemit, Flag it! If you see them on a Facebook group, report them to the admins. It is quite simple, they can't survive if we stomp them out.
If Something is Too Good to Be True, You Need to Investigate.
I honestly do not understand how people fall into this kind of schemes.
Great post as aways my friend :)
Upvoted.
I hate scams that use cryptocurrency to get scammed money, it gives a crypto a bad name and can drive away investors
@cryptotraderx I agree; so many people associate cypto with with pure Ponzi schemes.
genesis mining isn't a scam ,is it?
No, it is cloud mining. I just don't like their service. I prefer Bitclub.
Can you join Bitclub from the U.S. ?
The exit scams on HYIP are going to be brutal for the poorest in the community. I made a mocking post where i asked people to use my referral link so you can get scammed. No one thankfully did. I fell for cloud mining LTC coin when it was a lot less than it is now. Total exit scam.
Greed compels humans to do stupid things. I was one of them. They got me once and that was it.
I was pitched recently about Bitconnect. Everything I researched suggested it was probably what you are describing... no solid names or company for contact info, guaranteed returns specified, and altho no one could prove one way or another that the so-called "software profiting from the volatility of BTC" did or did not exist, most felt they were simply paying older investors with new money.
I've also seen a couple of Bitconnect articles here that were flagged. so I'm guessing the Steemit community has "ruled" against it? And also asking, is this one that you warn about? I actually haven't replied to the guy that got me looking at it yet, I just don't feel good after doing some cursory research on it.
I took one look at Bitconnect and said, "NOPE". It is not exactly an HYIP like I showed but it looks similar even though they have their own currency.
Okay thanks for the insight. I didn't want to accuse them of such with no evidence or expertise so your feedback is appreciated! I also said "Nope" it just took me longer, haha.
Oh. I am also in bitconnect. I don't know if it is trustworthy or a HYIP.
Thanks for the heads up my friend, much appreciated.
The amount of scams like these is unbelievable... however to the people saying this reduces the reputation of cryptos, I would answer that ponzi schemes existed long before the first cryptocurrencies, and most of ponzi schemes are still fiat-based
Upvoted and followed.
Also beware of NEW mining services. The returns are much lower, and they're presented as genuine cloud mining services. They operate for @6 months then go offline.
Referral schemes, aggressive marketing and a relatively new service should be signs of alarm.
Keep safe
Thank you, there have been a few mining scams as well.
I've never heard of these HYIP schemes until now.
Thank you for spreading awareness and I'll be sure to flag them now.
Can't believe some people are willing to scam people.
Thank you @hilarski
Believe scamming is huge business the problem is no one really talks about their losses, only their wins.
Thanks for sharing this. It can save a lot of money for people who are interested in this !