Why not, if "random people on the internet" investments help them to earn even more ? I don't see anything wrong in it.
Their method of raising capital is illogical and does not increase their profit. See below quote from another thread.
I don't have any investment in bitcoin-trader.biz. Still I'm amazed at how little creativity detractors show. For example, it is easy to have revolving lines of credit for fiat. There are also multiple ways of moving fait and you can even move by using other cryto currencies. There are fees and spreads that cut into the profit, but that isn't as much an issue if you can trade a multiple of your funds in a day. It is also possible for prices between exchanges to narrow or reverse in a day.
On creativity: What about the myriad ways a hypothetical arbitrageur could leverage his or her trading?
*Reinvesting some of their steady, fabulous profit until arbitrage opportunity has diminishing returns (no cost!)
*Bank loan, home loan refinance, etc. (~5%)
*Equity investors/partners (could be quite low and risk-free to arbitrageur)
*Credit card cash advance (~20%)
*Loan shark (~40%)
*Payday loan (~200%)
*Paying dozens of people 0.5-3% everyday and updating their balances appropriately (~620-3000%)
Not only is the last option the most expensive, it's the most labor-intensive. Literally the only reason someone would do that is if they want the ability to take the money and run.Indeed. And also: If you walk up to any venture capitalist or other investment firm and can prove to them that you have a way to make 0.5-3% per day risk-free (which is what BT claims), they'll be falling over eachother to give you their money. You wouldn't need to bother with making a website with account-management, keep an entire support team on payroll and bother with questions and complaints from people with $50 investments. Furthermore, you could definitely negotiate better terms when it comes to your own cut of the profits and the lock-in time of the investment.
If BTs activities are real, then their way of collecting money is incredibly inefficient and simply wasting a ton of potential profit for them.