Online Ponzi Schemes Using Digital Currency

HYIP: E-gold Ltd. tolerates them or perhaps even loves them because they generate new account holders and fees. Looking at the amount of tiny or small daily spends one may conclude that the HYIP business accounts for a majority of e-gold spends each day. Exchange agents love them and some may say its the life blood of the industry. Without all that buying and selling of DGC, surely exchange agent revenues would dry up.

The HYIP operators love them because the online ponzi schemes keep a strong flow of digital cash coming in each day, week and month. Some forums like talkgold love the HYIPs. Without these schemes, this enormous forum and some others simply would not exist. So why should anyone, especially a non participant, dislike the High Yield Investment Programs?

Some are saying because a non participate does not make income from the investment schemes, they complain about the operations. If your daily income, rent, food and family’s bills are not paid with revenue from the HYIP schemes you should just shut up and let the industry continue as it has for years now. Perhaps they are correct. Others argue that if some HYIP ‘players’ or ‘investors’ are stupid enough to believe they will receive such high returns on their money, they DESERVE to be separated from their cash and no one should try and stop it.

Much of an argument centers around this concept: “If someone is so stupid to participate, they should lose their money.” Is that correct?

Many online participants will tell you, “But I’ve made money from these (investments)” so why does anyone want to interfere and stop their operation? The same argument could be made for online sports betting which is now taking a beating from the US legal system. People are going to gamble one way or another, why is the US prosecuting these presumed legal foreign systems?

The tough question….each day is money being swindled from unwitting players or is it just how life works, some people will always take advantage of others. Whether its gambling, investments, confidence schemes, if that person is greedy enough someone will eventually take their money it may as well me an HYIP and the industry vendors can make a great living during the process…Who is right?

Who is wrong?

Why are some operations ‘ethical’ and other not? Why is online horse betting legal and approved but poker is not? People online lose tens of millions each year to these HYIP schemes. Can you ask, “Is the digital currency at fault for allowing their product to be used for such operations?”

Is it all a question of money and the size of the operation. NETeller was processing around 7 billion a year and a majority of those payments were online gambling. 12DailyPro’s bank account transacted over 500 million dollars and Stormpay was reported to have been frozen with about $50 million. Is it OK, to swindle 2-3 million and walk away but the larger players should get busted? Should we allow the small crooks, but prosecute the large ones? Where do you draw the line? Who draws it?

Should a person just shut up and let it go?

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HYIP

What Is An HYIP? Why Should You Avoid Them