Bibcoins Currency Scam Review
BIBCOINS CURRENCY SCAM
1. What is bibcoins
Bibcoin is a coin I saw people promoting on Facebook a few weeks ago. I actually did not expect the coin to go very far as its website had signs of a Ponzi scheme and scam written all over it.
Surprisingly, the scheme seems to have grown a lot as its Facebook page has quite a substantial number of people following it.
The website defines Bibcoins as a follows:
“BIBCOINS is a peer-to-peer program were you buy Bibcoins from R100 up to R100 000. The Bibcoins value can grow at any time due to demand of the coin, when you buy Bibcoins it will give you 40% every month compound interest.”
The review will show that bibcoin is just a Ponzi scheme that is out to defraud people who are clueless about how digital currencies work.
2. How does bibcoins work?
The bibcoin domain name was registered on 28 May 2016, meaning it was it 54 days old at the date of publishing this review. Domain registration details show that the owners have used a Capetown address but have hidden their identities, so they are unknown.
Bibcoin is a simple and straight forward scheme to understand. Simply create an account, then log in and update your profile with bank details.
Buying bibcoins is simple as well. The website interface design resembles MMM Global. To buy click the bit blue ‘buy bibcoins’ button.
After clicking “Buy Bibcoins” you will be required to type in the number of bibcoins you want to buy. Bibcoins can be bought at a price R100 each. If, for example, you want to buy R 15 000 worth of bibcoins, then you should type ‘150’ and click the green ‘buy bibcoins’ button.
You will then be allocated bank details of an individual who is selling his or her bibcoins. You will be required to pay the money within 72 hours or your account will be blocked.
Once you make payment, and the recipient confirms, your bibcoins will start growing at a rate of 40% per month.
3. Is Bibcoin a Cryptocurrency?
Bibcoin is neither a digital nor a crypto currency. Fortunately, the owners of bibcoin do not claim that it is a crypto currency or digital currency.
If it’s not a crypto currency, then what is it? Well, bibcoin is just a convenient unit for the measurement of the money participants donate to each other.
In the real world, bibcoin is totally worthless. The value it derives in bibcoin website is linked to the 40% monthly return promised to the people who buy it.
When the bibcoin owners stop paying the 40% monthly interest to the scheme’s participants, the bibcoin will lose its value and no one will be interested in buying it.
4. Is Bibcoins a Ponzi Scheme
Wikipedia defines a Ponzi scheme as a fraudulent investment operation where the administrator uses money from new investors to pay earlier or existing investors.
We know that bibcoin.co.za does not have any investments or source of income from its operations.
The only source of income for bibcoins is money from who join the scheme and buy bibcoins. Once members have bought bibcoins, they start earning compound interest of 40% per month.
But who pays the 40% monthly interest? It is paid by new members who buy bibcoins as there is no other source of income. As soon as new members dry out, the system will crash.
Bibcoins fits the definition of a Ponzi scheme perfectly, so we have every right to label it a Ponzi scheme.
5. Can You Profit From Bibcoins?
Despite knowing that Bibcoin is a Ponzi scheme, many people will still join it with hope of making profit and withdrawing funds before the systems crashes.
Unfortunately, Bibcoins is one of those schemes in which the chances of making money from it are extremely slim, even if you joined early. There are 2 main reason for it.
Firstly, Bibcoins only pays R100 to members for inviting a new member, irrespective of how much the new members contribute to the system.
The result is that people who are skilled in marketing and recruiting for Ponzy and pyramid schemes will not have incentive to join bibcoins. Thereby greatly reducing the potential success of the scheme.
Secondly, the bank account details supplied to members who buy bibcoins will be those of the website administrator and his syndicates. Don’t be fooled by the so called peer-to-peer program, the administrator will pocket most of the money from the sale bibcoins.
A small percentage of people who will donate reasonable or small amount of money will definitely make some profit.
But those who contribute large amounts of money will lose out as, just like pipcoin or undercover millionaire, the administrator’s greed won’t allow large returns to be paid to investors who are not members of the ‘clique.’
These type of websites are created by scam artists with the intention of scamming investors who believe in get rich quick schemes. It is just not worth it to invest in bibcoins. The risk of losing out is too high.