Introduction to SCAMS and INVESTMENT SCHEME
PONZI SCHEME
A Ponzi scheme is an investment scam that pays existing investors out of money invested by new investors, rather than from profit earned through legitimate sources.
Operators of Ponzi schemes usually entice/attract new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. (Example if you give 1 USD and promise to get 10,000 USD tomorrow, Would you invest? Are you stupid? Lol just kidding, just make a decent research first about it to be safe)
Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected. The business becomes a Ponzi scheme if it then continues under fraudulent terms. Whatever the initial situation, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.Scheme is named after Charles Ponzi, who became notorious for using the technique in 1920.
Source: Wikipedia
PYRAMID SCHEME
As its name indicates, the pyramid scheme is structured like a pyramid. It typically starts with one person - the initial recruiter - who is on top at the apex of the pyramid. This person recruits a second who is required to "invest" a certain amount, which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest. If the recruit gets 10 more people to invest, he or she will make a profit with just a small investment.
Further, the new people become recruiters and each one is in turn required to enlist an additional 10 people, resulting in a total of 100 more people. Each of those new recruits is also obligated to pay their investment to the person who recruited him or her. Recruiters get a profit of all of the money received, minus their initial investment paid to the person who recruited them. The process continues until the base of the pyramid is no longer strong enough to support the upper structure, and there are no more recruits.
The problem is that the scheme cannot go on forever, because there are a finite number of people who can join the scheme (even if all the people in the world were to join). People are deceived into believing that by giving money, they will make more money; however, no wealth has been created, no product has been sold, no investment has been made, and no service has been provided.
Conclusion, pyramid scheme is like referral system but referral system is infinite and much better unlike pyramid scheme. Pyramid scheme is like me got people under my recommendation and that person need to invest then im making money and that person need to have another person to invest under him. It is finite unlike referral system that used register id or ip address. Referral system sometime can bring profit to both but pyramid scheme only to the upper one and ppl on the bottom will suffer.
Source: Wikipedia and several more sites
SCAM
A scam is a term used to describe any fraudulent business or scheme that takes money or other goods from an unsuspecting person. With the world becoming more connected thanks to the Internet, online scams have increased, and it's often up to you to help stay cautious with people on the Internet.
Types of computer and Internet related scams
1)Phishing
2)Auction Fraud
3)Donation Scam
4)Catfish
5))Cold-call Scam
6)419
7)Chain mail
8)Online Survey Scams
Typical Bitcoin Scam
1. Bitcoin Investment Programs
-If it is too good to be true it probably is not goes the old adage and it is as true today as it was in the past. When people are promised higher yields on their deposits, they are often swayed by greed.
2. Bitcoin Mining Scams
-A lot of mining operations are alleged to be scams but to narrow down the definition mining scams can be described as operations, which take a fee to mine Bitcoin on your behalf but never deliver. Cloud mining particularly has been in the eye of the storm.
3. Bitcoin Wallet scams
-Getting pickpocketed sucks but having your money vaporize under your very nose is brutal. The usual modus operandi of scam wallets is that the victim deposits Bitcoin into such a wallet and when it reaches a certain threshold; the money is transferred to the scamster’s wallet.
4. Bitcoin Exchange Scams
-Exchanges are the point of entry into the Bitcoin universe and many victims of scams are attracted to lower exchange rates, promises of anonymity or offerings such as PayPal or Credit Card processing that other exchanges may not offer.
Once the victim deposits payment for buying Bitcoin, they never actually receive their cryptocurrency leaving them high and dry.
NOTED: You can find a lot of forum and website talking about scam and ponzi also some provided us with a list. Just search any site on google and put some keyword after it such as scam, ponzi or whatever to learn more about the site. If there are none, nice but stay alert as it may be a new site or a clean earning site.
A Ponzi scheme is an investment scam that pays existing investors out of money invested by new investors, rather than from profit earned through legitimate sources.
Operators of Ponzi schemes usually entice/attract new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. (Example if you give 1 USD and promise to get 10,000 USD tomorrow, Would you invest? Are you stupid? Lol just kidding, just make a decent research first about it to be safe)
Ponzi schemes occasionally begin as legitimate businesses, until the business fails to achieve the returns expected. The business becomes a Ponzi scheme if it then continues under fraudulent terms. Whatever the initial situation, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.Scheme is named after Charles Ponzi, who became notorious for using the technique in 1920.
Source: Wikipedia
PYRAMID SCHEME
As its name indicates, the pyramid scheme is structured like a pyramid. It typically starts with one person - the initial recruiter - who is on top at the apex of the pyramid. This person recruits a second who is required to "invest" a certain amount, which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest. If the recruit gets 10 more people to invest, he or she will make a profit with just a small investment.
Further, the new people become recruiters and each one is in turn required to enlist an additional 10 people, resulting in a total of 100 more people. Each of those new recruits is also obligated to pay their investment to the person who recruited him or her. Recruiters get a profit of all of the money received, minus their initial investment paid to the person who recruited them. The process continues until the base of the pyramid is no longer strong enough to support the upper structure, and there are no more recruits.
The problem is that the scheme cannot go on forever, because there are a finite number of people who can join the scheme (even if all the people in the world were to join). People are deceived into believing that by giving money, they will make more money; however, no wealth has been created, no product has been sold, no investment has been made, and no service has been provided.
Conclusion, pyramid scheme is like referral system but referral system is infinite and much better unlike pyramid scheme. Pyramid scheme is like me got people under my recommendation and that person need to invest then im making money and that person need to have another person to invest under him. It is finite unlike referral system that used register id or ip address. Referral system sometime can bring profit to both but pyramid scheme only to the upper one and ppl on the bottom will suffer.
Source: Wikipedia and several more sites
SCAM
A scam is a term used to describe any fraudulent business or scheme that takes money or other goods from an unsuspecting person. With the world becoming more connected thanks to the Internet, online scams have increased, and it's often up to you to help stay cautious with people on the Internet.
Types of computer and Internet related scams
1)Phishing
2)Auction Fraud
3)Donation Scam
4)Catfish
5))Cold-call Scam
6)419
7)Chain mail
8)Online Survey Scams
Typical Bitcoin Scam
1. Bitcoin Investment Programs
-If it is too good to be true it probably is not goes the old adage and it is as true today as it was in the past. When people are promised higher yields on their deposits, they are often swayed by greed.
2. Bitcoin Mining Scams
-A lot of mining operations are alleged to be scams but to narrow down the definition mining scams can be described as operations, which take a fee to mine Bitcoin on your behalf but never deliver. Cloud mining particularly has been in the eye of the storm.
3. Bitcoin Wallet scams
-Getting pickpocketed sucks but having your money vaporize under your very nose is brutal. The usual modus operandi of scam wallets is that the victim deposits Bitcoin into such a wallet and when it reaches a certain threshold; the money is transferred to the scamster’s wallet.
4. Bitcoin Exchange Scams
-Exchanges are the point of entry into the Bitcoin universe and many victims of scams are attracted to lower exchange rates, promises of anonymity or offerings such as PayPal or Credit Card processing that other exchanges may not offer.
Once the victim deposits payment for buying Bitcoin, they never actually receive their cryptocurrency leaving them high and dry.
NOTED: You can find a lot of forum and website talking about scam and ponzi also some provided us with a list. Just search any site on google and put some keyword after it such as scam, ponzi or whatever to learn more about the site. If there are none, nice but stay alert as it may be a new site or a clean earning site.
Source: Several site combined
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