it seems to me you are not a mean-spirited human, but you do lack basic and fundamental understanding of this scam and how it works. No one wants to read the 4 or 5 paragraphs here: http://en.wikipedia.org/wiki/Ponzi_scheme
And your positive intentions are obvious as well. Assuming I don't understand how fraud works is a sign that you're emotionally driven, like a nutcase ex-girlfriend.
Just remember:
The road to hell is paved with good intentions. While you're bitching and acting out like a rabid prosecutor who's been promised judgeship, Pirate is generating returns.
You point to circumstantial observations and declare them as fact. That can only be described as
WRONG. See quote above.
Alzheimer's disease cannot be confirmed until after death. This applies to Ponzi schemes as well. Flu
symptoms are not a guarantee of having the flu. Get over your bad self.
What I lack is tolerance for abusive persistence steeped in ignorance. Your
McCarthyist witch-hunt is not only detrimental to those targeted, but makes you a point of ridicule. You've stated your case and haven't been bothered to even remotely investigate the possibility that Pirate's operation could be legitimate, preferring to reject reason in favor of emotionally-based accusations. This despite the fact that I've clearly outlined not only the
how, but also the
why of Pirate's actions.
so let me answer your latest question:
You aren't "answering" anything. Your claims are one-sided and irrational, being taken out of context and with a grossly biased perspective.
1) with Madoff, and every other ponzi scheme operator, to pay this insane interest you need constant new investment.
Anything that is growing requires a constant supply of resources, whether it's a start-up company, a baby in the womb, or a tumor. Yes, there are scams, such as Bruce Wagner's MyBitcoin last year. That does not give you some mystical power to declare yourself judge, jury, executioner, and white knight extraordinaire (extraordinarily asinine IMO).
2) as a function of time, Ponzi owner continues paying the interest and continue taking new investment, with every payment depleting the principle of each investor
Yes, that's what happens in a Ponzi. Thanks, Captain Obvious.
3) there is no money making business unit
A repeat of the emotional accusation. The process has been outlined by myself and others; ignored by you and the ZOMG-IT-HAZ-2B-PONZI crew.
4) spend money, pay employees, keep some for yourself, keep telling the investors, old and new that you are trading great and making money for everyone, ppl keep investing, total liabilities keep skyrocketing, reserves keep depleting, keep asking for new investment, keep paying, etc. as long as you can. With the Madoff scam it's staggering how long he was able to keep this cycle going. One of his last "investors" was a 95-yr old guy named Carl Shapiro who send Madoff $250M USD during the final months of his scam. By this point Madoff had run out of money by paying his consistent 1% per month interest for years, thus your question "what if he just stopped right before he got caught?" is a little redic. - he had something like $64B in customer funds that were supposed to be on deposit with about $200M in cash by the end. Remember he just had to send a paper statement to his investors each month saying saying "your balance is $x,xxx,xxx.xx" check box yes to constantly re-invest. If this scam had been done with BTC it would have lasted much shorter.
Please. As though a balance statement would've been any guarantee the funds were there. Like I said earlier: the existing financial system is so rife with corruption and fraud that it's easy to see scams everywhere. There have been scams in the Bitcoin economy, but if we all thought the way you do, Bitcoin itself would never have come into existence.
Now relax - you've made your point repeatedly. The world can do with less negativity.