Interest rates
HYIPs typically claim to offer interest rates of 1% or more per day on invested funds; many claim to offer much higher daily rates reaching 250% a day.
Such high interest rates raise the question: why would any business that can earn such profits, legitimately, bother to look for small investors? Such unusually high yields should tip off investors that there are serious risks involved.
As a comparison with a typical 1% per day claim, [[Warren Buffett]], the world's most successful investor, made around 30% per year during his most successful period, i.e only less than a tenth of one percent per day. If it is assumed that such huge claimed returns as 1% per day cannot in fact be produced legitimately, all HYIPs are therefore likely to be Ponzi schemes, and so most investors will in due course lose their money.
Such high interest rates raise the question: why would any business that can earn such profits, legitimately, bother to look for small investors? Such unusually high yields should tip off investors that there are serious risks involved.
As a comparison with a typical 1% per day claim, [[Warren Buffett]], the world's most successful investor, made around 30% per year during his most successful period, i.e only less than a tenth of one percent per day. If it is assumed that such huge claimed returns as 1% per day cannot in fact be produced legitimately, all HYIPs are therefore likely to be Ponzi schemes, and so most investors will in due course lose their money.
posted by Dreamfishing's Blog at 11:29 AM
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