QUOTE(samuraikacang @ Jun 17 2012, 10:35 AM)
your dividend comes from other investor money and theirs from others and so on. the later investor will suffer.
if you don't mind taking others money, continue invest.
that is why gambling is wrong.
QUOTE(lucifah @ Jun 17 2012, 10:47 AM)
gambling needs luck and skill - the money you got is from people who lost their money when betting, while knowing the risk all along
ponzi scheme needs cheating skill and gullible investors, who were not properly informed about the risks
Just google-ed about the ponzi scheme and now I know how it works;
Steps in the Ponzi Scheme
Ponzi Schemes are quite basic but can be extraordinarily powerful. The steps are as follows:
1. Convince a few investors to place money into the investment.
2. After the specified time return the investment money to the investors plus the specified interest rate or return.
3. Pointing to the historical success of the investment, convince more investors to place their money into the system. Typically the vast majority of the earlier investors will return. Why would they not? The system has been providing them with great benefits.
4. Repeat steps 1 through 3 a number of times. During step 2 at one of the cycles, break the pattern. Instead of returning the investment money and paying the promised return, escape with the money and start a new life.
It is better for me to take my deposits back before step 4 happen. Thanks for the comments guys