HYIP is Gambling. These programs purport to offer interest rates of 300% P.A., or 2% per day, or 20% per month. This is very difficult to do legitimately. What most of 'em do is pay their early investors with the money of the later ones. This is called a 'Ponzi' scheme.
Eventually, the organisers disappear with a large chunk of the HYIP cash, or the scheme collapses, or both. The scheme collapses because you have to keep getting more investors in to pay off the earlier ones. Eventually you run out of investors. Such HYIP investments are popular because they are essentially a form of gambling. The 'wiser' investors know this, get in early, gamble on getting their money back with (huge) interest. The trick is, even then, the organisers may not let them have their principal back on demand. What happens is: - Their web site develops technical problems;
- Payments are made later than specified, or not at all;
- The site owner claims illness or accident;
- They place additional hurdles in the way of your getting your payment etc. etc.
For the late investors, their chances of getting anything at all decrease in direct proportion to the longer the scheme goes on, as the number of new members needed to fund it increases, by orders of magnitude. If you enter a program with a view that its like buying a lottery ticket, that's fine. You might lose your stake, or you might get a very good return. The best HYIP investments are those pursued in this manner; as a gambler. Research which one is fairly recent, paying out, and take your chances. As a previous buyer of scratchcards and player of slot machines myself, there are much dumber forms of gambling, believe me!
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