SEC-S17W3- "Let's talk about Ponzi scheme".

Greetings dear friends,
It's week 3 in the Steemit engagement challenge for season 17 and I'm delighted to share my participation in this week's challenge which is titled Let's talk about Ponzi scheme. This is indeed a great topic to look into and I'm glad that I will be sharing my view in it.

Have you ever heard about ponzi schemes?

Yes I have heard of Ponzi scheme before and I know exactly how they operate. Ponzi scheme is a form of business investment scam in which people who get themselves involved are expected to get high reward for a little investment made.

How this works is that the new investors money is use to settle the old investors and that makes them much more richer in the business and they will go as far as inviting more people are sharing their return to motivate them.

In Ponzi scheme, the scam is done in such a way that the money of the new investors are use to pay the old investors this means that they don't invest the money generated from the earlier registered persons into any business instead they encourage them to get more people to register so that they can get a better reward.

Ponzi scheme came in to existence in the 1920s and it was named after Charles Ponzi, one of the persons that introduced this very type of fraud in the world.

Have you been offered to invest in any of these schemes?

Yes, I have even invested in this scheme before. When I was new to the crypto world before meeting Steemit, I was eager to learn and earn via Crypto currency and for that reason, I decided to jump into any opportunity that has to do with this earning.

I joined one of the Ponzi scheme and I made a little money but after a few days of joining it, it crashed with my capital inside. I was so disturbed about it because it was all my savings that I put in to earn more.

So for the question of if I was offered to invest in this scheme, my answer is yes. I was convinced after seeing the return of a friend and I decide to also try and that was where my money got trapped.

Do you know how to detect Ponzi schemes?

Yes, after being a victim once I believe I learnt my lessons there after. So, here I will be sharing with you how one can easily detect Ponzi scheme without much stress.

If an investment is a Ponzi scheme, you will notice the intensive pressure those who are in will give you to also join because they make money because you also joined. Also, the profit they will promise you will someone too good to be real.

A good example is investing $11 and then earning $1.5 everyday for the next 60 days. Question, where will they get the money to pay you such amount for the next 60 days? So when you see such promising return, you will be tempted to invest even when you know that the reward is too good to be real.

There is no transparency as to how they generate your interest on your investment and also you can not have access to your invested capital because you will be told that it will be locked within the period.

So if you see all of these in any scheme, you don't need anyone to tell you to flee for your life because they are there to accumulate and then elope with your money.

Do you think Steemit is a ponzi scheme?

From my definition of Ponzi scheme above, you will understand that Ponzi scheme has to do with investment which you have no control over and you can never earn anything from such project unless you invest something. This is not the case of Steemit.

In Steemit, you can start from scratch without anything and then earn and grow your finances. In Steemit there are investors and they are bloggers so which ever one you choose, you will have complete control over your finances.

So in summary Steemit is not a Ponzi scheme it is a legitimate investment platform which anyone who has the resource can easily make more money through different means provided by the platform.

I want to invite @solaymann, @msharif, and @suboohi to share their participation in this contest if they haven't shared theirs yet.

NB: All images are mine and are edited on canvas