China hit by financial scam 'epidemic'
"Peer-to-peer lending and virtual currencies have fuelled the spread of other investing scams, luring victims with little financial knowledge."
"Pyramid - and Ponzi - schemes rely on attracting a constant stream of new investors, and some of the funds raised are paid to earlier backers."
http://www.bbc.com/news/business-41105589
Thoughts?
Crypto just enables these kinds of scams and makes them easier to operate. We have all seen the HYIPs offering very high interest, it's no different. It's also easier to get away with as it's psydo anonymous.
People still get caught though:
https://www.wired.com/2013/07/sec-says-man-named-the-pirate-was-running-bitcoin-ponzi-scheme/
Thanks for the explanation and the link - makes a lot of sense and is a good read.