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There has always been a certain demand for Bitcoin mixing services. Given the fact that Bitcoin lacks privacy or anonymity, there are always people who wish to remove any traces associated with their coin balances. Bitpetite is one of the more recent Bitcoin mixers to have gained in popularity. However, it also offers an investment service which raises a lot more questions than it does answers. In fact, it has a lot of signs of being a Ponzi scheme.
BitPetite Investment Option is Controversial
While we covered the Bitpetite Bitcoin mixer not long ago, there are some things about this site which are raising a lot of questions right now. It turns out the team – or operator – has added an investment feature to this platform which guarantees returns of 3.60% every day. While no one doubts this mixer is popular, such returns are a clear sign of a Ponzi scheme waiting to collapse.
To put this into perspective, a Bitcoin mixer is always looking for additional funding, for obvious reasons. There are plenty of people looking to “mix” very large amounts of Bitcoin these days. If a particular mixer can’t support a large amount of coins, its transactions can’t go through. Without additional funding, missing out on such large transfers would be the only course of action. The Bitpetite team certainly isn’t looking forward to that by any means.
That being said, there is no real reason as to why the mixing service provider should offer an investment program that will attract a lot of negative attention. By offering fixed daily rewards – or even more than the projected 3.60% – this is evidently not something people with knowledge in this space will invest in. The mixer claims to use investors’ money to improve the overall service, although it remains to be seen if that is actually the case.
It is true Bitpetite charges a service fee to anyone looking to make use of its Bitcoin mixer. Then again, that still doesn’t warrant this high ROI investment structure whatsoever. There are some interesting aspects to this investment structure that warrant a second look. For example, users can invest with cryptocurrency directly or have their funds converted to USD. That’s a very unusual turn of events, to say the least.
Moreover, the program provides a choice of investment terms and currently projects returns of 147% within six weeks. A lot of people will like these numbers, even though most educated users should be well aware that this is nothing more than a pure scam. With guaranteed daily interest rates ranging from 3.6% to 4.5%, it is evident this scheme can’t be legitimate whatsoever. Even if the company’s mixer were to become overly successful, it can’t guarantee that people who invest 750 Bitcoin today will earn 1,102.5 BTC within six weeks.
Moreover, this dubious investment scheme also raises a lot of questions regarding the legitimacy of the Bitpetite mixer itself. Although users seem to be more than happy with the service for now, one has to wonder what would happen if the funding ever dried up. Based on this investment scheme, the team is more than willing to take people’s money without problems. That’s not the most appealing approach by any means.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.