They break down indeed! Pyramids, created by genius Charles Ponzi, or built by Egyptians, break down sooner or later. Even famous companies or corporations that seem to be more than real end up broke sooner or later. But the pyramids that surround HYIP investor break down logically and in series, as the house of cards, from which the card is pulled. Well, as the pyramids are our reality I decided to think over today and I invite you to do it â€“ to think over how the pyramid is breaking down, and how itâ€™s possible to avoid it.
Of course, my modest ideas cannot be a guide quality enough to lead notorious scammers that would like to read this article just to avoid destruction of their pyramids. :) This is rather an article for the investors, who should better understand the market rules, as soon as they are to face with the programs of poor quality, being such schemes, they should be prepared to it. In this case, information and experience are arms.
Ideal pyramid is built in different manner than one used by Egyptians. Itâ€™s built vice-versa. From top to bottom. And each following block, according to pyramid theory, should be connected with other two or three. In this case such connection is realized with the help of referral links and other similar programs. But even the simple connection on the form of enlargement (when 3 investors follow the one) replaces such successive link (which is inherent to matrix.)
Ideal pyramid is built up successively. One person should be on the top and two persons should be at the bottom. The system will enlarge limitlessly in case there are merely two persons. This is the main rule, if you give the funds from the top to the bottom, rather than attract them from the outside.
Basing on this, itâ€™s possible to point out few main reasons for the pyramid to destroy â€“ either there will be one person instead of two under some investors (creating links instead of enlarging basis) or the pyramid is not built up successively. For instance, if 100 investors will come at once, but then 50 investors follow them, pyramid will be destroyed.
What if the pyramid doesnâ€™t have additional support? In our case additional support is reserve fund, created or attracted by the programâ€™s administrator or use the money in case of crisis, when the investors donâ€™t come. However, this refers to the case when admin is going to build up a pyramid according to the model of Mr. Charles Ponzi.
Some more or less honest admins (traders) unite their fund and those that they manage to get from investors. In this case the pyramid may be effective, and work long enough â€“ all depend upon adminâ€™s desire, and it this case itâ€™s quite hard to predict when the pyramid will break down. But itâ€™s however possible due to definite issues.
At first, many admins donâ€™t care about reserve funds and donâ€™t even lie about it. This a wrong position. :) Then, many admins donâ€™t want to say what they do with the money and donâ€™t want to lie. Is it worth paying attention and the money to such fragile systems? I think, no.
Please pay attention to the tendencies of growth that are officially reflected on the site. Most admins twist these counters without care and without the least hidden motive, but they show themselves from the worse side! What are we to be shown to decide investing in them?
Thatâ€™s right. A TENDENCY. I hope, you understand, which one. Tendency is good and jumping is bad. If they write 4000 investors, this is bad. Where will they take 16000 to bring oyu the money? You may object, that these 4000 will reinvest their money. And what if the program pays 1% daily?
Here we may conclude that the most effective pyramid is the one that attracts the funds from the outside. And if the admin managed to convince you of this â€“ for instance, the site of the program hasnâ€™t been working for long but the money is paid, or he showed his accounts and told what he does with the money (this is frequent with private programs), or DID it in some other way, Iâ€™m sure this program will bring the profit. Often very few investors in such cases receive nothing. The most part leaves off with the presents. :)
How can investors care that the pyramid wonâ€™t fall apart? The number one in this list is active participation in attracting referrals. But itâ€™s important to think â€“ do you need it and can you afford it? Some investors neglect it, some allow quite unreasonable actions, crying that this is the best program in the world, but then are forced to make excuses, because this is not what they promised. :)
Thatâ€™s it. I hope you will share your thoughts about it and prompt what to do to foresee when the pyramid is going to break down, and how to prevent it. Write us.