What Is A HYIP?

Hello Everyone, I want to use this first post to welcome you to my blog, WebMoneyNews, my thoughts, ideas, insights and knowledge about HYIP as a business. Basically we need to understand what a HYIP is. If you type the word HYIP in Google search box you get a lot of information about HYIP. Well, for sake of a definition, according to Wikipedia,

a high-yield investment program (or programme), HYIP, is a type of Ponzi scheme, which is an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors

I needed to pull out this definition for us to have a solid background information about what HYIP is all about to avoid any deceptions from anywhere. Now I want us to take a critical look at this definition and analyze it critically. Firstly, a HYIP is an investment scam know as Ponzi scheme. Ponzi scheme is described by Wikipedia

as a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments to investors. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases. Now you need to understand this basic and background information to enable make an informed decision. Now whether you like it or not HYIP is a business because there is an investment and the difference between HYIP and other businesses out there is the level of risks involved. Of course every profit-making venture is risky, there is risk everywhere, life itself is a risk. How you manage the risk is what makes the difference. Some Ponzi schemes lasted for many years and made profits for some many investors offline before collapsing. With the advent of the internet and HYIP, many HYIPs have lasted for so many months and made huge profits for discerning investors while the greedy ones lost their hard earned money. Secondly, from the definition HYIP promises unsustainably high return on investment by paying previous investors with the money invested by new investors. It is very important you understand this part very well. Unsustainablility is a common characteristic of fast scammers in HYIP industry. Common sense will tell that this particular return on your money is unsustainable and you should feel with your money. I want to conclude by saying that there are good HYIPs and there are bad HYIPs. It is a big industry that is making people money on a daily basis while some are also loosing money as well to scammers. HYIP is a business. Watch out for more info.