Silk Road forums
Discussion => Off topic => Topic started by: rise_against on August 21, 2012, 02:32 am
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looks like he scammed a bunch of ppl out of 500k btc. main reason the market has been so unstable lately.,
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Not sure if this is entirely true, it's like saying a real estate scammer made the dollar weak when it was actually a bunch of banking systems. Maybe if it was a big Bitcoin institution running a scam I would believe, but one user manipulating the market? I don't buy it, there's got to be another reason. I honestly think it's just the fat cats cashing out when the BTC hit $15-16, I'm talking about the people that have $100k+ invested.
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bitcoin forums have speculated he is "the manipulator"
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I have not checked into the status of the BCST today, but he is rumorer to begin repaying people today (monday) over the next week.
There is no reason to call him a scammer (yet).
Lets see if he repays.
But yes his announcement to end the BCS&T is what began to drop the market - no telling how the outcome of this will effect the BTC mid/short term.
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Have there been antpy reports yet of him paying back people? i'd hate to see people lose money but i also know it happens. Either way things will return to normal in do time.
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i really dont see how he could possibly pay back everyone what he promised if he wasnt a scammer.
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Doubt he's going to pay people back, I think this is just a really long invested ponzi scheme like everyone is assuming. There are even posts of him laughing and saying he's not going to pay anyone back but then there are posts of him saying things like he's invested in this idea for over a year so why would he scam everyone.
I think he's just another scammer, even if he isn't and he pays everyone back they're all going to sell their coins as soon as they get them and the price is going to take a nosedive or he's just going to hang on to them and sell them and the same thing is going to happen. I feel like the price is going to drop no matter what :/
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Yeah I hear ya.
Rumored at 500,000BTC. I would have a hard time deciding what the right thing to do would be too.
It is worth noting though - it would be hard for him to hide such a large chunk of coins.
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i really dont see how he could possibly pay back everyone what he promised if he wasnt a scammer.
Easy! Announce the closure of BCST in order to induce panic in the marketplace, adding hundreds of thousands of BTC from your BCST wallet to the sell orders on the market to initiate a landslide price drop - everyone panics because of the huge amount of coins released, knowing that price is going to drop because of this, so they attempt to cash out their own BTC immediately; this drops the price further enabling you to buy up BTC effectively at half price (hugely increasing your BTC holdings) in order to pay back your investors.
Don't forget, he was paying interest in Bitcoin, so if you invested 100 BTC valued at $1400.00, and you get back 107 BTC worth $749.00, he's still fulfilled the terms of the contract as you've received your 7% interest in Bitcoin, as the contract stipulated.
A shrewd move on pirateat40's behalf, and one which contained a large degree of calculated risk. I reckon if it hadn't worked out that he would have just absconded with the coins, but it has worked out (so far), so he can now pay his investors back and save face in the community, enabling him to effectively wash, rinse and repeat this process under another guise. (It remains to be seen, of course, whether he actually pays anyone back or not - he was supposed to begin doing this yesterday and so far nobody has been paid back yet. The scam / Ponzi possibility is still very much open.)
Again though, it's an investment and as such it's inherently risky. The first rule of investing is that you never risk more money than you can afford to lose. I fear many people ignored this rule, and if this turns out in the worst way possible, then there are going to be a lot of very broke, very angry people out there. Greed is, has, and always will be, humanity's downfall - both on an individual and collective level.
- grahamgreene
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Damn, that is ROUGH! Im glad i used all mine the day before 8)
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sounds like a smart dude
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know the game and learn to win.
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Pirate40 be schemin! going ponzi on peoples asses
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If it was a ponzi scheme:
Why tell people it is going to close?
Why repay anything?
Im leaning toward not a ponzi personally, unless he is well known (AFK/IRL) by others in the bitcoin community and does not want to be doxxed I dont see why he would waste time and energy telling
People he would repay them if he has no intention to do so.