$Jager Jager: an obvious Ponzi scheme
I perfectly illustrate Jager's problem here with a simple example.
You invest $5,000. Upon entry, a fee of $500 is deducted: you are left with $4,500.
Then, you make a profit of $500. Your capital rises back to $5,000.
But at the time of selling, a new fee of $500 applies. Result: you drop back down to $4,500.
In this scenario, you made an effort to generate a gain, but in the end, you come out with a net loss of $1,500.
This is exactly the mechanics of a Ponzi scheme: new entrants finance the old ones, and regardless of the increases, the majority will end up losing badly, while the big ones will pocket hefty dividends.
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