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Large Bitcoin Ponzi Scheme Collapses With a Loss of $5.6 Million
New submitter beltsbear writes "Despite the many people calling it out as a Ponzi scheme from the beginning, Pirateat40 was able to collect millions of dollars worth of Bitcoins from thousands of Bitcoin users. At almost every stage Pirateat40 copied the path of the EVE Online Ponzi scheme except on a much larger scale with a far more liquid take. Now, it has shut down, and investors are wondering where their digital currency went. Quoting: 'He claimed that BS&T was sitting on 500,000 BTC on the day of the shutdown, worth more than $5.6 million USD at today's price of $11.38. "Once my process is released you'll understand more of how coins move around," he told members of the Bitcoin community last week. Pirateat40 initially promised to refund his investors' Bitcoin deposits plus interest within a week, effectively admitting that he did not have the Bitcoins on hand. The fund normally paid out on Mondays, but last Monday and today have passed so far without refunds. BS&T investors are complaining loudly and so-called "pass-through" funds that invested with BS&T are shutting down. As of this writing, BS&T says there is "no ETA on payments."'"
Bitcoin is not an "experiment", it is a kind of modified Ponzi Scheme itself. Just look at it: The ones first in could get Bitcoin easily, then it became harder and harder. At some time it basically becomes impossible and the people early in will cash out. This will crash Bitcoin to never recover (no real value behind it), leaving all that came a bit later with nothing. Sounds familiar?
Also, the language Bitcoin is praised with can be found in any respectable Ponzi scheme with little modification.
Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
And this is why the the stock market is completely broken, except as huge scheme to separate suckers from their money.
ALL stocks should be required to pay dividends and be "voting" stocks.