It isn’t often that we start a review and then two weeks later are already issuing a failed rating.
That is the case though unfortunately with Bitpetite.
Basically Bitpetite was a website offering you the potential of earning 4.5% interest per day via investments in Bitcoin and other cryptocurrencies.
We raised a warning in our previous post below about this potentially being a Ponzi scheme and this is exactly what it turned out to be.
A few days ago the site went offline and it seems almost certain now that it isn’t coming back and they have run off with investors’ money.
Fortunately we only invested a small amount of money to test the waters so it was no great loss to us, but we understand some people lost thousands of dollars.
So it is a definite FAILED rating for Bitpetite and a clear warning not to invest in anything that looks like this.
Basically Bitpetite was what is called a High Yield Investment Programme – or HYIP for short – that have proliferated recently but are in effect little more than Ponzi schemes.
They offer unsustainably high interest rates of anywhere from 1% per day to 4.5% per day in the case of Bitpetite (and sometimes even higher).
People are lured in by these fantastic-sounding rates but all the schemes are doing is taking new investors money to pay existing investors. There is no underlying investment or if there is, it is not generating anything like the kind of returns claimed.
In fact, it is almost impossible for anything to generate those kind of returns – and certainly nothing can “guarantee” those kind of returns, which often these HYIPs claim to do.
The recent craze around cryptocurrencies has led to a proliferation of HYIPs promising great returns from Bitcoin-related investments.
The vast majority of these are bogus and should be avoided. People are mistakenly conflating the very substantial gains made in some cryptocurrencies such as Bitcoin and Ethereum with these HYIPs. They think that because Bitcoin has been so profitable, these schemes offering 3% or 4% per day are plausible. But the clear fact is they are not.
Here is a list of Bitcoin-related HYIPs we believe are likely to be Ponzi schemes and would advise you to avoid:
- – Chaingroup
- – Coinreum
- – Hextra Coin
- – Laser Online
- – Western Coin
- – USI Tech
As we said below in our original post, any investment in one of these schemes is essentially a bet on the website staying around long enough for you to recoup your investment.
But as Bitpetite has shown, these websites can disappear at any time and it just doesn’t seem worth the risk to us. You might as well go to the casino, at least that can be fun.
We are also taking a look at Bitconnect at the moment, which is another Bitcoin-related HYIP. The difference with Bitconnect is that it has an ingenious underlying business model which makes a significant amount of money, so it has a chance of staying around longer than most other HYIPs.
However, even with that business model, we believe Bitconnect is unsustainable in the long run.
So in summary, we would advise avoiding these HYIPs and would reiterate the old saying that if something seems too good to be true, it probably is.
Bitpetite – New Review
25th October 2017
We are continuing our foray into the world of cryptocurrencies with a new trial today of a platform called Bitpetite.
This follows on from recently launching a trial of another Bitcoin-related platform called Bitconnect.
Bitpetite is quite similar to Bitconnect in the sense that it is a cryptocurrency-related platform offering exceptionally high returns for investors.
Whilst we thought Bitconnect offered amazing returns at around 1% per day interest, Bitpetite offers an incredible 4.5% per day on weekdays and 1% per day at weekends for its 6-week investment program.
That is quite astonishing and to be honest, we don’t know how long that can be sustained. Some people have questioned whether this might be a Ponzi scheme and to be honest, we don’t know. However, we think people are right to be suspicious with returns promised to be that high.
So what exactly are Bitpetite doing to be generating such amazing returns?
Well, the website claims that:
“We provide secure money transfer services over the Bitcoin cryptocurrency network. There is a connection between you and your money, and our task is to keep this connection secret.”
So normally when you make a transaction in Bitcoin, it is not anonymous in the sense that the persons involved in the transaction can be traced on the blockchain.
However, with Bitpetite they say they are processing these transactions in groups so that the transactions can be anonymised.
In that sense they are providing a service and charge for it. And what they say is that:
“Our system requires dynamic funding in order to run effectively. Our investors’ money improve the performance of our service.”
We are not sure exactly how this all happens but the possibility of making a 147% return over 6 weeks or a 180% return over 9 weeks is intriguing enough for us to give this a try and see if it actually real or just a scam.
So we will start a live trial if Bitpetite today and will update results here regularly so you can see how things are progressing.