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> At the rate at which it was going, payout was more or less ensured (300btc * 1.2 = 360. They quit 16 coins short)

I think you misunderstand how ponzi schemes work.



I don't see the flaw in his reasoning, can you elaborate?

EDIT: I will, then. If when he put money in when there was a total deposit of 300, the total owed by the system was 300 * 1,2 = 360. So it would all be payed when the total deposit of 360; he considered that at the rate it was going at the moment it would have been reached quickly (here is the gamble) but instead they closed the site 16 BTC short of that target.

Are you sure you did understand? Or am I on the wrong path?


And the people putting in those last 16 bitcoins - what do they get back?

There are always losers in every ponzi scheme.


Nobody is denying that, but you are misunderstanding his argument.

There is a difference between a ponzi scheme collapsing from lack of new "suckers" vs pulling the plug on the site. I think what he is trying to say is that there were plenty of suckers left, and the loss now feels artificial.

Somebody is going to pay though. I'm sure (I hope in this community) everyone knows that.


This is indeed exactly my reasoning.




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