The Emergence of sites with tremendous profits

Bitcoin Questions and AnswersCategory: General questionsThe Emergence of sites with tremendous profits

Philip asked 2 years ago

With the surge of companies online displaying tremendous profits on investment like 300%,3000%, ect; how can one know a genuine online company to invest in without hassles.
Also, with these free bitcoins being going round which i appreciate, dont you think it may affect the exchange value of bitcoin in the nearest future.

1 Answers
Ofir Beigel answered 2 years ago

Hey Phillip I’ve edited your question a bit. In the original question you’ve talked about faucets as investment sites. Faucets are sites that give away small amounts of Bitcoins, they are not investment sites.
What you’re probably referring to are HYIPs – High Yield Investment Programs. I believe that most if not all of these sites are plain Ponzi schemes where the original investors get paid by bringing in new investors onboard until the whole scheme collapses. 
Personally I wouldn’t invest in any of these sites. If you still think some of them are legit please use the Bitcoin scam test to verify the site’s integrity. I don’t believe any of them will pass.
Regarding your question about faucets (i.e. sites giving away free Bitcoins). These sites give out very small amount of Bitcoin so they shouldn’t affect the exchange rate. Also, as Bitcoin’s price rises you’ll see how the amounts these sites give out slowly declines.
Hope this helps.

Bitcoin Video Crash Course 

Dummy-proof explainer videos enjoyed by over 100,000 students. One email a day for 7 days, short and educational, guaranteed.

We hate spam as much as you do. You can unsubscribe with one click.