Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Service Discussion
Topic OP
Why I don't think Pirate will default
by
dree12
on 23/08/2012, 02:17:51 UTC
Disclaimer: I hold no financial interest in Pirate@40's endeavors, nor do I condone investing in shady 7% a week schemes.

I have personally retracted this statement.

I have recently been approached about my current position of Bitcoin Savings & Trust. While in the past I have remained fairly negative about BS&T, accusing the fantastical rewards as impossible and the entire business as a scam, with recent proceedings I have been forced to change my position. Although I refuse to accept that investors in BS&T have made a smart business decision, I am now forced to agree that the dice have turned their way and investors in BS&T will be receiving their full investments, plus interest, back.

Below is my rationale, point-by-point for structure.

  • Trusted operator: Pirate@40, although I have previously discounted this fact, is well-trusted in the Bitcoin community. This is both a white and red flag, admittedly, as investors may not have participated if a non-trusted member formed BS&T
  • Known operator: In similar vein, Pirate@40 is supposedly well-known among investors, having disclosed a factual name and picture. Admittedly, well-known Ponzi schemes have done the same; Bernie Madoff and Charles Ponzi not excepting. However, when the choice exists to be anonymous, Ponzi operators are likely to take it.
  • Continued communication: In an environment like Bitcoin's now, and building upon experience from Madoff and Ponzi, a true Ponzi operator would likely choose to fly to an exotic country and cease communication. Pirate@40 has done neither.
  • Payback: While all Ponzi operators have historically attempted payback when the operation is collapsing, the situation involving Pirate@40 is distinct in certain ways. The crucial difference here: Pirate@40 has closed the scheme himself. With the option of simply taking all the money and leaving, paying back a few investors is not constructive to his goals.
  • Financial incentive: At this point, with many PPT bonds in free-fall, Pirate@40 himself has the option of purchasing a large amount and reducing his debt. This gives him a financial incentive to repay his lenders. Additionally, Pirate@40 runs a reportedly successful business in GPUMAX, profits from which would disappear if Pirate@40 chooses to vanish.