bitcoin scam

Earn interest on Bitcoin?

If you got into bitcoin in certain years the question is no longer “if” you made any money its “how much” money you made. There are millions of people out there called baby boomers who put too much faith in getting a 5-7% return on their portfolio to fund their retirement, that means if they had a million dollar portfolio they would get a 50,000 to 70,000 dollar yield per year. Sure they might how to downsize their spending from their peak earning years but they are boomers, they can make the hard choices.

Then the unthinkable happened, interest rates around the world started to go negative setting a precedent capable of sending a shiver down a boomers spine.

That is T for trillions. Suddenly in 2015 it may have dawned on them, and we are not just talking individuals but pension funds too that even 5% is not realistic using safe, proven paths.

Meanwhile in 2017 I am trying to wrap my head around why bitcoin is my single best investment of my life when I get this message from my mom of all people.

After about 5 mins research this turned out to be a company called USI-TECH running a cease and desisted pyramid scheme completely unrelated to bitcoin, but it was eye opening to see what it took to get my mum interested in bitcoin.

Check out this news story on the people claiming to become millionaires selling this junk.

You never know what makes people move, usually it’s something personal like fear or greed. In Thailand I saw a cambodian beggar making a fortune because she held a newborn baby as opposed to the usual 1-2 year old “paid for daycare, paid for begging” scam but there was barely a woman who walked past who didn’t give some money to the cambodian beggar.

That was a vivid example of social engineering working. The best and most public example is Bernie Madoff scamming $64.8 billion from 4,800 investors before the pyramid scheme collapsed. You have to ask how so many with so much were tricked and the answer is simple. He offered them the last investment they would ever have to make. One Madoff fund, reported a 10.5% annual return during the previous 17 years and stories like these get investors wanting the same in a frenzy.

Recently I have noticed an alarming trend in Bitcoin and Ethereum, high-interest lending pools, guaranteed interest when staking, etc. These products are clearly selling so sales people are more than happy to pitch you them and I always ask them straight “how do you generate the interest?”, numbers are not like a seed that grows by itself so there is always a scheme behind it and, let’s face it I want 7% a month on my money but they always downplay the risk.

Take lending, so many entrepreneurs want to be the “next generation of banks” and lend money to anyone at stupid interest rates (but never their own money) with no real idea if they will get the money back. More often than you would want to believe these same people just buy their favorite coin, bitcoin/ethereum or whatevercoin probably with leverage then if they win the bet, pay you back and ask for more then gamble again. The problem is their gambling will eventually lose and that is not what these people wanting 5-7% per year want, in fact they want zero risk.

What I am trying to say is people if you are old, don’t fall for the new wolf in sheeps clothes and if you are young learn the scam.

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