What Is HourBitcoin About? A HYIP Scam? Read Before You Invest
What is HourBitcoin? Should you trust HourBitcoin and invest your money in this investment program? Read this HourBitcoin review and find out why you should avoid this investment scam.
What is the HourBitcoin?
Website address: www.hourbitcoin.com
Price: $10 (minimum)
Referral commission: 2% – 8%
Overall Rank: 0 out of 100
From the official site, it is mentioned that HourBitcoin provides Bitcoin investment services from the United Kingdom. However, I have done some research and I would like to highlight a few red flags in this post.
Read on to learn more about this HourBitcoin scam.
Should You Trust HourBitcoin?
You should not trust this investment company.
The HourBitcoin is a high-yield investment program (HYIP). If you have read the definition of HYIP on Wikipedia, It is s a type of Ponzi scheme, an investment scam that promises unsustainably high returns on investments (ROI) by paying previous investors with the money invested by new investors.
The HourBitcoin is a fake investment company. From the official website, one can notice it is an HYIP investment scam that aims to steal your hard earned money. Why? There are a few red flags I managed to pick up.
#Red Flag 1 – Fake Company Member Profiles
If you go to HourBitCoin profile, you will see three key members of the companies. However, these photos can be obtained from www.bigstockphoto.com, www.biofab.com.pe, and www.shutterstock.com.
#Red Flag 2 – New Site and Unknown Identity
HourBitcoin is very new and looking at the date of registry, the website was registered in 2016-06-04.
The registrant’s name shows up as Jerry Mack. I have tried to search for that name on the internet and nothing shows up. This is a clear warning that the scammer does not want to reveal his or her real identity to avoid detection.
#Red Flag 3 – Ponzi Scheme
HourBitcoin offers offer 2%-8% referral commission program. It is a good way to make extra money. By inviting more people to their investment programs, you will instantly receive 2%-8% ref commission from every deposit your referrals made.
For a real investment company, this would equal giving away the entire (if not more) profit margin. This is a typical trick from most of the HYIP on the market. They offer to reward “referral fees” to investors for bringing in additional members.
That’s how a Ponzi scheme is operated. They recruit new members to sustain the pyramid scheme. They need “new” money to generate “returns” for the older investors by acquiring new investors.
It is a fraudulent investment scheme where they pay returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
It is a pyramid scheme that typically collapses in the end because it requires exponential increases in participants to sustain the business model. That simply means the scheme cannot go on forever.
The HourBitcoin probably still pays their investors for now as the program is still relatively new on the market. When there is insufficient investment fund from the new recruitment to the older investors, the entire structure will collapse.
#Red Flag 4 – Vague Investment Information
Obviously, there is a lack of details on how HourBitcoin manage the money from the investors. HourBitcoin tends to be vague about the strategies used in their program.
I tried to look for more information “About” HourBitcoin, all I got is just a vague information. Furthermore, they are not backed by a real and verified trader. There is no proof and information at all on who are running behind the scene.
Given that HourBitcoin is an Investment Service, it should be regulated by the Financial Conduct Authority (FCA). There is, however, no record of the company in the public register.
This is your hard earned money, please do not be afraid to ask questions. A genuine financial professional will usually be happy to explain in detail the investment program they are marketing. Unfortunately, HourBitcoin fails to do so.
#Red Flag 5 – High, Unsustainable Yields
I have years of experience in investments. Historically, investments in most large corporate stocks return less than 10% per year. Usually, HYIP scams offer between 1 percent to 2 percent daily profits to its members.
The HourBitcoin discloses their investment plans with no aim to hide its absurd and unsustainable returns. The provided calculator shows how just $5,000 deposit can earn you a 144% ROI daily under their Plan IV. To me, it is a total nonsense.
The funny thing is the investment plan returns a perfectly steady positive income percentage regardless of any external variable such as price volatility. Don’t you think this sounds a little fishy?
The ROIs that they claim on the official page clearly indicate that the investment is actually a Ponzi scheme or a junk bond that may never increase in value and has a high rate of default.
I am not a fan of these HYIP programs. It is very rare that I recommend them because there are some things you need to know before you dive into this and throwing your hard earned money around.
Every investment carries some degree of risk, which is reflected in the rate of return you can expect to receive. If your money is perfectly safe, you’ll most likely get a low return. High returns entail high risks, possibly including a total loss on the investments.
Fraudsters like HourBitcoin spends a lot of time trying to convince people that extremely high returns are “guaranteed” or “can’t miss.” They try to plant an image in your head of what your life will be like when you are rich.
Don’t ever believe it.
Based on my observation, it is very clear that HourBitcoin is an investment scam.
By the way, Amazing 5 started 6 months ago and now it is official shut down. It is now gone with a lot of money from many victims. This is a prime example of how these HYIPs scam your money.
Why do people keep joining HYIPs knowing that they are Ponzi schemes?
All these Ponzi Schemes are aimed at people who want to get rich quick and do not want to take the tried & tested route of – hard work = success.
Most people want to make lots of money quickly and the legal options are often very limited (e.g. Lottery). When a product promises to give you exorbitant returns, people tend to believe it due to our greed.
However, most of the people end up losing their savings and hard-earned money.
I wrote an article on How to Invest Online Without Being Scammed. This should serve as a reference when you look for a legitimate investment company on the internet.
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One powerful way to do this is through an approach called affiliate marketing. Affiliate marketing lets you earn money by promoting products from other companies. Any product you promote is going to be based on your opinion, and you are not required to stick with just one company.
If this is an area you’re interested in, you could learn more about this through my 7-day free email course. The guide is an excellent way to learn all the ins and outs of affiliate marketing and to get started in the field yourself.
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