OK, since Instant Bitex is a rather unusual investment program, we have a lot to discuss if we are going to really understand how it works. So that we will have all the information about it on hand when we discuss it, I’m going to repeat here what we know about the program so far:
- Silver Plan
- 0.5% for 365 working days
- $25 – $1,000
- Bonus = $50
- Gold Plan
- 1.0% for 365 working days
- $1,001 – $5,000
- Bonus = $500
- Platinum Plan
- 1.5% for 365 working days
- $5,001 – $1,000,000
- Bonus = $1,000
- Plan Calendar days to break even
- Silver 273 days
- Gold 137 days
- Platinum 91 days
- Plan DNI
- Silver 0.17%
- Gold 0.53%
- Platinum 0.90%
To begin, it’s important to remember that the Instant Bitex investment plans are the best TYPE of investment plans because they enable you to recover your investment on a day by day basis and break even before the end of a plan. This is far superior to the type of plan that holds your investment and/or earnings until the end of an investment plan. So, even though it takes a long time for some of the Instant Bitex investment plans to break even, this is a far better situation than investment plans offered by some programs where you don’t break even until the plan ends and your investment is finally returned to you.
Let me also note up front that, with a minimum investment of $5,000, the Diamond Plan might be beyond the reach of even the serious online investor. In fact, we recommend that a person NOT invest large sums of money in ANY online investment plan unless, of course, the person is firmly convinced that the program is just as viable as his local bank or a corporation that he might consider buying stock shares from. Unfortunately, few, if any, HYIPs are in this category. So, in what follows, we won’t pay very much attention to the Diamond Plan.
By far, the most noteworthy thing about the Instant Bitex investment plans is the low interest rates that they pay. As if this isn’t bad enough, since you only receive a return on business days, it works out that the DNIs for all the plans are very low.
You might recall that, in HYIP Insights #12, we suggested the following relationship between DNI and the chances of a program surviving in the long term:
DNI less that 1%. High chance of long-term survival
DNI between 1% and 2%. Borderline area
DNI greater than 2%. Long-term survival at risk
Of course, these are only our SUGGESTIONS and they are by no means fool-proof predictions of the fate of HYIP programs. However, they are probably in the right ballpark and can at least serve as guidelines with respect to how a program might perform.
Well, when you look at the DNIs for the three Instant Bitex investment plans, you see that they are all less than 1%; they are in the safe range. Forgetting about the Platinum Plan, I would say that they are VERY safe, meaning that the program should have a high probability of long-term survivability. As we already pointed out in our First Thoughts article, Instant Bitex has already been in operation for over a year. So, our “prediction” would appear to be correct.
Let’s look a little more closely at the DNIs for both the Silver and Gold Plans. We have talked about risk and, from this point of view, the two plans score very high. However, what about profitability, the flip side of the coin? If you multiply DNI, the average daily profit by seven, you obviously get average weekly profit that you will earn from a plan over its lifetime. Doing this for the Silver and Gold Plans, you get the following:
- Plan Average weekly profit
- Silver 1.19%
- Gold 3.71%
These are kind of low, especially the value for the Silver Plan. However, we must also note that these values probably aren’t correct because of the effect of the deposit bonus. This will be especially true for investments at the low end of the range of allowable investments for each of the two plans. I will make this very clear when we work some examples in the next section.
Since there is a significant advantage to making a deposit at the low end of the investment scale for a given plan because of the deposit bonus that you will receive, it appears that an obvious way to take advantage of this would be to make MULTIPLE smaller deposits rather than one larger one. For example, in the Silver Plan, the investor might make a deposit of $50 every week and, each time he deposits, would receive a bonus of $50, effectively raising his deposit to $100 every time. This would be very significant. In fact, for the Silver Plan, you could deposit $25 and still receive the $50 bonus, thereby TRIPLING your deposit. And, you could do this many times.
This leads us to a possible investment strategy for Instant Bitex. It is very simple. You invest the MINIMUM amount in an investment plan multiple times. For the Silver Plan, you would invest $25 multiple times and, for the Gold Plan, you would invest $1,000 multiple times. The result is that, because of the deposit bonus, in the Silver Plan, your deposit and earnings would be tripled and, in the Gold Plan, your deposit and earnings would be increased by 50%. These are VERY significant increases and, my opinion is that this is the only way that an investor should use these investment plans.
We will illustrate all this by means of numerical examples in the next section.
In case the foregoing isn’t clean, let’s do a number of examples to show how all this works. First, we’ll look at a minimum investment in the Silver Plan and next we’ll do the same for the Gold Plan.
For an investment of $25, you will earn 0.5% of this per business day, or $0.125 (.005 x 25). After 200 business days, you will have earned exactly $25 (.125 x 200) and you will have broken even. After 365 business days, you will have earned a total of $45.625 (365 x .125), for a net profit of $20.625.
But, as we said above, that’s not how things work because you will be given a bonus of $50. So, your deposit of $25 is really a deposit of $75. In this case you will earn $0.375 (.005 x 75) per business day. After 67 business days, you will have earned a total of $25.125 (67x .375) and you will have broken even (remember that you only invested $25!). After 365 business days, you will have earned a total of $136.875 (365 x .375), for a net profit of $111.875 (136.875 – 25). Expressed as a percent, this net profit (interest) is 447.5% (111.875/25 x 100).
Remember that this investment plan is 498 calendar days long. If we average this total net interest out over the length of the investment plan, we come up with an average daily net interest (DNI) of 0.9% — which is a LOT higher than the DNI of 0.17% that we initially calculated for this investment plan. The bottom line is that, by investing the minimum amount in this investment plan, the deposit bonus turns a marginally profitable investment plan into a highly profitable one. The breakeven point drops from 200 business days to only 67 and the DNI increases from a very modest 0.17% to a more than satisfactory 0.9%.
To push this example even further, suppose that a person has $500 to invest. If multiple deposits are allowed and, assuming that the bonus applies to each deposit, the person should NOT invest his $500 in one shot. If he does, he will receive a one-time bonus of $50. Rather, he should make 20 deposits of $25 each, say, a few days apart. For each deposit he would receive a bonus of $50, for a total bonus of $1,000 (rather than $50).
Next, let’s assume the minimum investment of $1,001 in the Gold Plan (we’ll use $1,000 to keep the numbers simple). Every working day you will receive a return of 1% of this, or $10. After 100 working days, you can see that you will have received a return of $1,000 and will have broken even. By the end of the plan, after 365 working days, you will have received a total of $3,650, for a net profit of $2, 650.
But, again, this isn’t how things work because you will have a $500 bonus added to your deposit. So, with a deposit of $1,500 working for you, your return every working day will be $15 instead of $10. Now, after only 67 working days, you will have received a return of $1,005 and will have broken even. After 365 working days, you will have received a total of $5,475, for a net profit of $4,475. This is a total net profit (interest) of 447.5% (4,475/1000 x100). Dividing this by the 498 calendar length of the investment plan, you get a DNI of 0.9% — WHICH IS EXACTLY THE SAME AS THE DNI FOR THE SILVER PLAN.
This is very surprising. Investing the lowest permissible amount in each of the Silver and Gold Plans, you find that they are equally profitable! I suspect that the administrators of the program know all this. However, as you have seen, it takes a bit of work to remove the camouflage to get down to most important point of the investment program.
Instant Bitex offers three very long-term investment plans. The interest rates that are listed for each of the plans are very modest by HYIP standards. However, each investment plan also provides a fixed deposit bonus that applies equally to any deposit made in the plan. So, by depositing the MINIMUM permissible amount in an investment plan, the bonus will have the greatest effect. Unless there is a rule forbidding it, it would appear that the most profitable means of investing with this program is to make multiple deposits of the minimum permissible amount in an investment plan. It works out that the Silver and Gold Plans are equally profitable when you invest the minimum permissible amount. So, there might be no advantage to investing in the Gold Plan.
This program has already been online for over a year. This can either be viewed as evidence of its long-term survivability and imply that it will continue to survive for a long time to come or a warning that the end of the program’s lifetime might be near. You will have to be the judge on that.
I hope this information is helpful
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