I'm not going to accuse them of a Ponzi or Pyramid scheme (though by definition, it would be more of a Ponzi scheme if it turned out that they were not doing anything with the money).

All I can say is - those Hashlets aren't mining. Now they may be day-trading, investing, or whatever to get the BTC back - and all of that is presumably legit/above-board - at least in the regard to those operations. I have no proof to make any such statements, other than I can clearly state from their own terms and conditions.



It also says that "A Hashlet is virtual software". Now as far as I understand, there is nothing virtual about mining. It requires power, and physical hardware of some sort. Also it doesn't say "Hashlet is software". Surely virtual software would be a redundant term if it were to imply that.

You are dancing around their words to try to make it say something, when all it says is what it does not do - It isn't physical. It doesn't imply actual mining on the selected pool - and the hashlet itself is virtual software. Now if you can read those statements and infer from that - its actually mining on their own pool somewhere/somehow - fair enough. But I cannot read that much into what they are not saying. Not in the context of their other claims - such as what the promise to do.