I wanted to take a post and talk a little bit about why I have decided to start covering various cryptocurrencies and what I hope to accomplish by doing so. Now I know this is not the type of posts that many of my older readers may have come to expect around here, but hang in there! I promise there will be plenty of gaming talk coming in future posts.
When I first started talking about cryptocurrencies with my good buddies Dan Debacle and Kramer, I was really excited about it, but at the same time skeptical of a lot of the things that I was seeing. For instance, I remember seeing sites that were hyping 15% returns on your investments. My inner Doubting Thomas was screaming warnings and rightfully so. Since my very first investment into BitCoin back in August, I have seen countless sites come and the majority of them have all gone. Now this is no surprise because those kinds of returns just wreak of scam. There is a reason that banks, investment firms, and other financial companies do not promise those kinds of returns after all.
There is a part of me though that loves to gamble though. In some circles, they may call it a generational curse. So I started researching these "High Yield Investment Programs". Now if you go and read their websites, some of them look really good. They say all of the right things and they make their websites look professional or flashy for the most part. As of late they have been throwing up a lot of logos attempting to indicate that they take Visa and/or Master Card. It should be noted here though, a legitimate financial company/investment representative will never... ever... EVER suggest that you should use credit to get cash to invest with. That just doesn't make sense from a financial perspective.
So I started reading various articles and websites. The problem with using various articles and websites is that there isn't a Forbes for the cryptoworld just yet. Yes, there are some really good sites out there that provide legitimate news, but I cannot go and pull up a site like Bloomberg and review certain sectors of the market. So I decided to check out YouTube and see what people in the community were saying about the various programs.
I do not know why it came as a surprise to me, but the vast majority of YouTube channels are all promoting one HYIP or another. Yes, some make valid points as to why not to invest in HYIP site two, but are all in on HYIP site one. It really bothered me for some reason. That is when I decided that I would put my own money where my mouth is and pick a handful of various HYIP sites to invest in. Yes, even with knowing the risk!
So the very first one I chose was Bitconnect. Now surprisingly, BitConnect has been working properly and running now for over a month for me. So much so that one of my friends asked me when I would change the title of the BitConnect series? That caught me off guard and I laughed it off and simply said that I couldn't change it till I knew for sure that the site was not a scam. That got me thinking though, when can I make that call? After considering a lot of various things, I feel as though the only way I can truly say that it is a legitimate platform is when I see the return of my principal investment back. When is that you may be wondering? Well, probably sometimes around the middle of June, and even then, I do not know if I could truly label it as a viable platform.
I think one of the things that bothers me about the HYIP promoters, isn't the fact that they are earning referral money, but that they do not do enough to warn people of the risk of these investments. So when people see their videos and sign up for such failed sites as Control Finance, Bit Lake, and Thunder Bit (to just name a few), the promoters while having lost their principal, usually come out alright because they have made bank off of their referral bonuses.
Now don't get me wrong, I place the referral links at the bottom of every video that I make, but I rarely mention the links and have even debated on removing them altogether. I do not have a problem with someone earning a little extra on the side, but I have a huge problem when they do not try to educate the audience that they are speaking to. What I mean by that is most people who buy into HYIPs are one of two types. The first type of person is someone who understands the very high risk nature of these kinds of programs and they usually have the disposable income to spend on it. The second type of person, is the type of person who is living paycheck to paycheck. In other words, these people a lot of times are probably in a pretty bad way and are looking for ways to better themselves. They go and see some person on YouTube who is preaching with conviction that this HYIP is going to change their life. So with no warning from the promoter, they take their money and just start throwing it at whatever program they may have seen and probably more often than not, lose their money.
I don't know how people who promote the really far out sites can honestly look in the mirror at theirself. Now someone may be sitting there and saying, "Ruhtra, man you just released four videos today covering these kinds of sites and all of them have links in the video's description..." That is correct, but I think that if you watch the videos, I spend a lot of time trying to provide solid information about things like having a budget, understanding your finances, understanding that this should be hobby or fun money, establishing your retirement accounts and getting any company match, setting aside enough money to cover three to six months worth of your bills, diversification, and not falling for the hype. The focus of why I am making these videos is to show others that there is a big risk involved and you can and will lose money.
I honestly debated for a while about not covering any of the other sites, simply because I do not want to provide them with any extra exposure. However, if I don't, then maybe no one will produce content that warns you of what these sites are all about. In the end, it would be great if all of the hype surrounding such sites like Control Finance were true, but it is not. It is just people trying to get you to sign up and put your hard earned money into some pretty sketchy investments. If I can make one person think and not invest, then I will consider it a good day and if any of these sites turn out to be the real deal, then I will be the first one to say I was wrong and my content will provide the proof.
At the end of the day, I just want you to be aware of the inherent risk of investing into something where more often than not we know nothing about the individuals running the site. It's a dangerous cryptoworld out there and due to its decentralized nature, there is no regulatory entity that will protect the small guy against the countless fraudsters who are out there. Be safe and do your research before every jumping into any of these types of platforms. I'll see you all next time!