The Roof Is On Fire - BTC Making Headlines In South Africa

Hey JessTC investors

South Africa doesn't often make the news when it comes to cryptocurrency, but when it does, it is usually a shit show. We've seen the BTC Global Ponzi scheme up and disappear with local investors money, we've seen a kidnapping with BTC randoms and a local trader robbed of his BTC. Since then its been pretty quiet on the domestic crypto scene until this week when news broke out about the Bitcoin Wallet Ponzi Scheme.

Bitcoin Wallet, a generic name for an unexceptional project, was promising 100% ROI within two weeks? What? Honey that's a scam? You going to lose all your money? Ah ah Oh, no, no, no! So a bunch of noobs went full Carlos Matos on this Bitcoin Ponzi which wasn't even one. At least Bitconnect had a token and a functioning website.

This dude was collecting and recycling fiat and never touched a dam cryptocurrency. I'm pretty sure he doesn't know much about what crypto is, or you wouldn't call your business Bitcoin Wallet, would you? I feel it's unfair to label this a Bitcoin scam if there was no proof that cryptocurrency even played a part in the process.

Before closing, Bitcoin Wallets had grown so popular that the owner stopped taking in deposits of less than R5,000 or $350. At the time, African News Agency speculated the firm received more than R2 million in cash deposits per day, representing “the largest daily cash flow in the whole of Ladysmith.” How insane is that?

According to ANA, investors would queue up overnight outside the Bitcoin Wallet office, provide necessary identification information, sign a single page form, deposit however much they could, and then wait 15 working days to receive 100% returns. So where does the Bitcoin even come into play here? Hmmmmm at least give me a useless shitcoin in return so I have something to hold on to when you run away with my money, a keepsake if you will, of my stupidity.

What happens next will shock you...to South Africans not so much

Eventually, the project went tits up, and they ran away with the money Gupta style, and rumour has it the guys are still on the run. So what did investors do? They went to the police, the police said to make a case, they said fuck that, let's burn his house down, which they did.

I realise this isn't the most constructive way to voice your frustrations, but in South Africa, it's how we get anything done. When we want to prove a point we dance and then set things on fire, pretty sure Billions are lost this way but who cares right? I'm angry I need to burn something, YOLO!

Image source: - coindesk.com

Ponzi schemes and MLM's are an idiot tax

Do I blame someone for setting up a Ponzi scheme to make money? A little, I mean they should act ethically and all that I mean if you can convince people to give you so much money you have some skill or talent that could make money legitimately, but hey that takes a long time, and we want instant gratification.

I can't be mad at Ponzi schemes or Multi-level market companies; they make money for the owners and the investor's willingly hand over their money. I mean there has to be some due diligence when handling your money, right? You are deciding to hand over money. Shouldn't you be taking some responsibility for your bad decision making?

Get a financial education

Financial education is grossly lacking not only in developing nations but developed nations too. It's not taught in schools, and most people only understand the concept of trading time for money. Investing and owning your wealth is a concept for the rich while the rest remain ignorant and hand over their money in various ways such as insurance and overpriced bullshit we convince ourselves we need.

If you don't understand how money works, no one is going to do it for you; they're going to take you for a ride.

The point is, educate yourself and don't put money into things you don't understand or investing money you cannot afford to lose.

Greed is a treacherous mistress.

Have your say

Holla at me in the comments! All my commenters I will now refer to as Jessie. Jessie is a good friend of mine, but Jessies got a girl, and I want to make her mine.

So have at it my Jessies! If you don't have something to comment, simply comment "I am a Jessie."