If there’s something that always revolves around the subject of cryptocurrencies is definitely the trust issue; as all the blockchain system of these currencies functions according to people’s trust, it’s also its weak spot as only a few of dishonest are enough to make great illegal scam-deals out of it.
Well, this is what’s happening with a supposed mining company called BestCoinInv.com. This company claims to be a BitCoin mining site where you can invest your funds and, thanks to their business in trading-mining cryptocurrencies as well as in online marketing, get back profits from 7-12% daily.
Only with these numbers it all sound just too good to be true, anyone who has at least read something about the basics of cryptocurrencies knows these numbers are impossible to achieve. So, even if initially you can make some profit out of is, chances are you’ll end up losing a lot.
How does BestCoinInv scam work?
As we said, the site BestCoinInv claims that they work mining bitcoins. And therefore, they ask you to form an investor’s network that will also profit you and this goes eternally, each piece of that network is a person that will invest in the so-called bitcoin mining but truth is that there’s no mining at all; every new investment is used to pay old profits.
That’s why they need to constantly keep recruiting people. Of course, this is not illegal but the thing is that neither can it long forever, eventually they won’t have enough money to keep the profits or either will run with it, as it always happens in this kind of scam.
Actually, this system has a name and it’s called Ponzi scam and has been fraudulently applied in a lot of other situations. Of course, you’ll earn money, but it will always be based on a lie and on tricking another one
How do companies scam this way?
Most of the people trying to get away with this kind of scam register false companies in the UK, where providing “investments services” is completely regulated. This means that getting a tax regulation is really easy there and you can do it from anywhere in the world, just register as a UK business and voilà! Your investments company will look legit, but what people don’t know is that this is not enough to actually be a real investments company.
This kind of business needs an FCA registration to actually be an FCA regulated company; BestCoinInv (and most of these kinds of scams), is not really registered in the FCA, therefore is not a legal company.
bestcoininv.com looks like the scam of bitrise.biz whose site is now suspended.
So, in the end, if you are ok with earning money in fraudulent ways, it’s possible that you get some profit at the beginning, but you need to know that some people would even probably lose their life savings in this kind of business so, if you’re not an expert in investments and you’re an honest person, it’s better to run away from this kind of business since it’s probable that you’ll end up losing your money, or worst.