-snip-
2. Every round has a random return % between 110% to 200%.
-snip-
4. Every next player's invest will payout its previous investor and hence only the last person looses.
I dont understand #4 here I think. Lets say its a 200% round (which should double). If we further assume Fixed deposit amounts:
#1 invests 1 - bankroll is 1
#2 invests 1 - bankroll is 2, #1 gets paid 2
#3 invests 1 - bankroll is 1, #2 gets paid 2, where does the missing 1 BTC come from?
No. The system is not like that. As I have mentioned in point 4, the next person should always pay the previous person's payout. So, your example with 200% return will look like as follows...
#1 invests 1 - bankroll is 1
#2 invests 2 - bankroll is 2, #1 gets paid 2
#3 invests 4 - bankroll is 4, #2 gets paid 4
Untrue.
This statement is only true if you substitute the word 'level' for the words 'player', 'investor' and 'person'.
As each level must, by definition, be 2x as big in value in order to pay the level above, this is an application of MLM to this "game" where the # are levels, not individual people.
As the value of each level doubles, then the lower levels obviously consist of more and more individuals who are likely to lose everything if their level is the last.
To say "only the last person loses" is untrue and deliberately misleading, the sort of lies the MLM industry tells all the time..