Bitcoin has a bad reputation all over the world, as the virtual currency is often associated with scams, hacking and Ponzi schemes. Several financial experts went as far as calling Bitcoin – “the biggest Ponzi scheme of all times” – a few years ago. Unfortunately, the latest arrest of people allegedly associated with the MyCoin Bitcoin Ponzi in Taiwan will only fuel the fire.
Over the course of this past weekend, we have received several reports regarding the Hong-Kong based Mycoin.hk, which apparently closed its doors without warning and ran away with a lot of users’ funds. The reason why this is important is because the Mycoin.hk platform packaged their investment plan so that customers would receive Bitcoin in return for a fiat currency investment. While the scheme itself looks a lot like a ponzi scheme, they did manage to collect a ton of money from unsuspecting investors, and give Bitcoin an even worse reputation at the same time.
Mycoin.hk – Mining Contracts, Bitcoin & Ponzi Scheme Structure
We have been getting panicky emails in our mailbox by concerned readers about the latest developments of the Bitcoin price. Articles, even from reputable newspapers, are headliend by titles such as “Bitcoin is a Ponzi”. In nearly every article out there about “Bitcoin is a Ponzi scheme”, the term Ponzi isn’t explained.
When most of us hear about Ponzi schemes we think of some slick, smartly dressed mobster – including a hat – who dazzles unsuspecting victims with a smart sales pitch. He or she gets their victims to invest in so called “risk free” investments with huge returns.
Ponzi schemes are still running rampant through the world of Bitcoin and other digital currencies. Despite the massive losses by “investors” when CryptoDouble shut down, people still keep investing their Bitcoin into other ponzi schemes in the hopes of making a profit while the program is relatively new. As a result, we also see new “types” of ponzi schemes appear, such as PonziCloud.
PonziCloud – Bitcoin Cloud Service
Needless to say, ponzi scheme operators are adapting to the current situation involving Bitcoin and cloud mining. With several companies forced to pause their cloud mining operations, as well as several ASIC manufacturers going bankrupt or even disappearing altogether, Bitcoin mining is not in a good state right now.
By the looks of things, Bitcoin and altcoins ponzi site CryptoDouble has been taken offline and will not be returning anytime soon. Even though we have warned people a few times on this website and through other means to not invest into this ponzi scheme, there is still a lot of outrage in the general cryptocurrency community. What did you expect?
Over the past few weeks, we see a worrisome trend emerge in the world of Bitcoin and digital currencies. Ponzi schemes are nothing new in the financial world,and you could go as far as saying they still take place on a daily basis on the stock market. Due to the growing media attention on Bitcoin, it was only a matter of time until we saw multiple cryptocurrency-related ponzi schemes pop up.
While there should be no need to point out the obvious, it looks like a lot of people are still falling for the fake promises made by CryptoDouble.com. Anyone who has more than three peas for a brain can clearly see this is a ponzi scheme, but for those of you who still think this is the real deal, you’d better keep reading this article.
CryptoDouble.com promises users they will receive 200% of their investmenet after 100 hours. After all, this is an online investment platform which has been established by a group of professional traders and skilled analysts, according to their FAQ page. No one is really buying this bullshit, are they? Seriously guys?