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FIB - Scams 101 - Ye Olde Archives
Posted By: S. Tanna In Response To: RE: THE TIM (MICHAEL)
Tuesday, 21 June 2005, at 12:40 p.m.
You know what: I don't think that's a good way to test it.
Not because of any monetary losses that you might make, but because, you still don't know what's going on fundamentally in the system and where the money is coming from. I'd still like an answer to my "Riddle me this post"
Why isn't a good way to test it?
Because if one person manages to make a profit, it doesn't prove anything about a program's fundamental legitimacy. Even Charles Ponzi paid some of his investors, before his scheme collapsed.
In Charles Ponzi's scheme (or rather one of his schemes), people were supposedly making money in trading stamps and/or international reply-coupons (I forget the precise details, read the link above), there was a semi-plausible sounding rationale for where the money was coming from, although on close examination that kinds of return of investment promised were not really there (as skeptics pointed out), and it was a Ponzi scheme (hence the name), a fraud, based on paying early investors using later investors' funds. In Ponzi's scheme, early investors did make money, and did manage to get funds back, and the fact they did, and they told people that did, just made the eventual collapse even worse, and even more damaging to more people.
Now, in legitimate opportunities, you can see where the money is coming from, and profits in some way correspond to what is being sold. If you invest in a fast food franchise, the money is coming from customers buying your food, and the profit is based on food+labor+other costs, versus the price you sell at. If you're selling something online, the money is coming from customers buying it, and the profit is based on the difference between the price you buy and the price you sell. And so on.
Now I don't think it's unreasonable for people to ask where the money is coming from in the program being discussed - this is fundamental to determining if it is a legitimate opportunity. I also don't think it's unreasonable to ask how there can be a 10X (more than in fact) change in value, in less than 30 days (in fact, it's more than 10X in about two weeks) - see my Riddle me this post.
BTW, you do realize that a 10 fold increase in value in 4 weeks (less than was recorded by this site for 1-ecurrency), if sustained, is 100,000,000,000,000% interest per year. Even doubling in value in 4 weeks (which seems not at all untypical for many of the e-currencies listed on that page), is 409,600% interest per year.
P.S.
I don't want to get involved in the Tim vs Others flamewars.
Put ClickBank to work on your site
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