so when growth stops, and the amounts invested are lost, to you that is an acceptable risk because of the potential gains that were possible in the period leading up until the collapse?
No. Loss would be one thing; cessation of interest payments is another entirely. The principal doesn't disappear just because growth slows or stops. Yes, there's always a counterparty risk when another entity holds your assets, but from how I see Pirate's operation working, the only potential for loss would come from a decline in exchange rate
below the initial acquisition cost.
If you bought 100 BTC at USD$5 and invested with Pirate, then interest payments had to be stopped, that doesn't mean the initial 100 BTC are gone. The accrued interest up to the point of cessation would remain as well. If the return amounted to 10% for 110 BTC total, and we assume the current exchange rate of $9, then the only way you would incur a loss is if you sold below $4.55/BTC.
100 @ $5.00 = $500.00
1
10 @ $4.55 = $500.50
Pirate's risk is holding other currencies with which to acquire BTC - EUR, USD, etc. The amount entrusted to him has been increasing geometrically, but the return-generating activity is separate. It is what investment banks do, and is especially similar to how precious metals have been managed for decades. It's nothing new.
Anyone investing with Pirate has not only been making a killing with the dividend returns, but has also seen a huge increase in relative value from the growth of Bitcoin alone. They're getting capital gains
and direct proceeds from company profits. That puts any Ponzi to shame.
As a side note: the way Pirate is running BS&T is
not the only way to generate very high returns, but it is a very favorable balance of risk/reward.
Don't bother to argue. Miscreation's babble may well qualify as the largest heap of bullshit that anybody has ever posted here.
Oh, that hurt
sooooo much, please stop hurling insults!
Reason and logic seem to be unfamiliar to you. It's amazing that, for so many bright and progressive individuals involved with Bitcoin, there are still so many
crabs in the pot.
Ok, I'll stop being an ass now. If you don't see how the dynamic works, ask questions like koin is doing. That way we all come away enriched.