Beware of Bitcoin HYIP Scams!!
Today I saw a Steemit user post about an amazing High Yield Investment Program better known as an HYIP. I literally almost spit my coffee out. Yesterday I wrote about Onecoin and The Billion Coin Scams. Today I have to alert the community to the HYIP Bitcoin scams going around.
What is a Bitcoin HYIP (High Yield Investment Program Scam)?
A High Yield Investment Program is a scam that promises users ridiculously high returns on their investments. I am not talking about 10-20% per year but 5% per day or higher! Most people who get involved with these Bitcoin scams lose their investment long before they realize a return.
Look at What These Two HYIP Bitcoin Scams are Promising.
This one is Assets-Bank.com.
Then we have Sky-profits.com.
Why Do People Not Recognize Bitcoin HYIP Scams as Illegitimate?
The simple answer is greed. People are attracted to the quick money and Bitcoin HYIP scams are supplying the means to do it. When I first got into Bitcoin I was introduced to an HYIP by a guy that I trusted. He said, "Randy this great you will make good money". So I invested about 2 BTC into the HYIP. I was able to withdraw about 1 BTC before the website folded. The guy convinced many people to join and we all lost money. I imagine he made a nice amount in referral bonuses.
This is how this stuff works folks. They offer large incentives to convince your friends to join. They join, make a little money, reinvest it and then one day the website is gone and everyone is freaking out. Where did my money go? Somebody robbed me! This thing was a scam! Then mysteriously they get an email from a similar website claiming they are the next hot HYIP on the market. So you start the process all over again.
The Only Ones Who Benefit in HYIP Bitcoin Scams are the Owners of the Websites.
Seems like common sense right? The problem is that the emotion of greed is a very powerful one. Humans let their guard down when it comes to promises of great wealth.
Do Me a Huge Favor, Go to Both Sites Above and Study Them.
Then the next time some loser tries to get you to invest some of your hard earned Bitcoin into an HYIP you will recognize it for the crap that it is.