Beware of Ponzi Schemes Utilizing Bitcoin Payments
The Ponzi scheme known as MMM Nigeria, has just recently made the announcement that it is moving into Bitcoin as a form of payment.
This elaborate scheme was first created back in the 1990s by Russian businessman, Sergei Mavrodi-after collapsing, has made a reinvented push back into the field of play, once costing participants billions of dollars.
The reinvention of the scheme comes on the heels of a newer, simpler model. Participants agreed to sending money to other participants, and once a month had come and gone, got their so-called investments back with 30 percent in interest from there other participants in the scheme.
The risk is clearly visible with this lending money scheme, and slowly but surely will face collapse and cause millions of people to lose their money once again. Even more disturbing is the rising number of participants despite the clear red flags surrounding the entire concept as a whole. Back in December, MMM had froze accounts of the participants, causing over three million Nigerians to be affected.
Bitcoin or not, it would be best to steer clear of such endeavors if you like to keep a hold of your money.