26 Jul 2021
Ponzi Schemes: 8 of the very best
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
A Ponzi Scheme is a form of investment fraud that pays profits to earlier investors with the money from more recent investors.
They are nothing more than lies and deceit.
Attached are 8 of the biggest Ponzi Schemes perpetrated in the United States since 1990.
Click for chart.
The learning, when you hear the words sexy and exciting in the same sentence as investing, RUN.
We are pleased to confirm that we have not once in our 30 years of providing advice to clients been entrapped by any of the Australian or American schemes and nor are we going to be beguiled by Bitcoin which is not a Ponzi Scheme by definition but still a financial disaster.
Just ask the hundreds of thousands who bought Bitcoin at US$63,150 in April 2021 to see it collapse to US$34,456 today which is a 45% loss of capital.
Will the price of Bitcoin drop to US$0?
Unknown but most likely because it is not an investment, it is a collectable and the price of a collectable depends on the number of collectors who see value in the item. As the prices collapses, it is likely that less and less will be willing to pay for lines of code.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.