About Online Investments
Generally, investment is a deposit in different investment programmes with the aim of gaining profit. HYIP – High Yield Investment Program. These Investment Programs are called High Yield, because their interest charges are very high.
What is a basis for such a high “profitability” of HYIP? On the main page of any HYIP you can read tales that HYIP administration is successfully in business in the Forex market and is occupied with highly remunerative investments, intended for the novice investors and the most credulous depositors, in real business. As a matter of fact, all HYIPs work according to so-called ponzi principle - that is investors receive their interest payment at the expense of money, invested by other depositors later. It is obvious that any such ponzi investments couldn’t increase endlessly. At some instant pay outs, which depositors take out from this program will inevitably exceed new investments. All HYIPs stop their work long before that moment; they simply close their project. Moreover in the work rules of any HYIP you can read that it could be changed at any moment and that the administrator doesn’t bear any responsibility for your money, and that you invest them on your free will. In the long run it could be interpreted that nobody guarantees you anything.
Nevertheless practically every day scores of new HYIPs appear and people continue to put up their money and the majority of them are perfectly aware of the fact that they could fail to increase their capital and loose money which they have invested.
What are the reasons for their doing it? At first all HYIPs dully pay interest to all participants – otherwise nobody would put up their money. That’s why the first persons who join in HYIP frequently have a real chance to increase their capital. But they could loose their money as well.