Comparison of the Investment Plans.
In Part 1 of this Battle, we tried to set the stage by summarizing the features of the investment plans of our two competitors — SimbWealth and BitTank. Now, we have the challenging job of trying to determine which is the best program — the winner of the Battle…
Probably the most important thing to think about when comparing investment plans is the daily net interest (DNI) that each plan will pay you. This is the true measure of how lucrative an investment plan is. We already calculated the DNIs for each of the investment plans for these two programs in Part 1 of this Battle. So, you might have to refer back to that article as you read this.
Before we begin, I’m going to once again go over exactly what DNI is. Referring to the BitTank Advance Miner plan, it pays you a gross daily interest of 2.16% interest per day. This includes your principal that is being returned to you as part of your earnings. After 47 days, you break even and everything that you earn from then on is pure profit. So, during the first part of the investment plan term you are recovering your principal and, during the second part, you are earning profit. Well, suppose we average this profit out over the ENTIRE LENGTH of the investment plan. What we get is an IMAGINARY daily net interest rate (DNI) that will give you the same profit as the gross daily interest rate MINUS the loss due to the fact that part of the gross rate is your principal coming back to you. In the case of the Advance Miner plan this DNI comes out to be 1.88%. You might say that DNI takes the camouflage away so that you get the true picture of the profit you can make from an investment plan. And, that’s why it’s so important.
This said, let’s get back to the Battle…
If you look at the summary listing of the information for the six investments plans that we are comparing, quite by accident it happens that they are listed in order of increasing DNI. The three SimbWealth plans have the lowest three DNIs and the three BitTank plans have the highest DNIs. So, immediately, you can see that the BitTank investment plans are more profitable.
As we mentioned in Part 1, the three SimbWealth plans fit together nicely and their DNIs increase because the lengths of the plans increase (even though the daily gross interest rates decrease). The three BitTank plans also fit together nicely and, in their case, the DNIs increase because the daily gross interest rates increase (but the length of the plans remains constant). So, the two programs employ DIFFERENT methods of obtaining an increasing DNI. This once again emphasizes the importance of DNI as it is the only way to simultaneously consider both the effect of daily gross interest and length of investment term on the profitability of an investment plan.
Like the three BitTank investment plans, the highest DNI SimbWealth plan (the Real Estate plan) also has a term of 365 days. In fact, looking at the DNIs of these FOUR plans, they fit together perfectly into the sequence of increasing DNIs. Unfortunately, the minimum investment for the Real Estate plan is $500. So, given the low DNI of 0.41%, there would be no incentive to invest in this plan. An investor would do much better to invest his $500 in the BitTank Standard Miner program having an DNI of 1.17% which is almost three times (1.17/.41) greater than the DNI for the Real Estate plan.
So, it looks like BitTank is always the more profitable choice. Does this mean it is the unconditional winner of this Battle? Almost — but not quite. There are obviously other factors than profitability that MUST be included in the evaluation of an HYIP investment plan. If profitability were the only factor, then any investment plan with an insanely high DNI would always be the winner! Well, what else should we be looking at? Two things immediately come to mind:
- The chances for the program being sustainable in the long term and
- The probability that the company is for real.
Here we get to the flip side of the coin. The higher the DNI that an investment plan offers, the lower the program’s chances for survival. It is obviously easier for a program to make low interest payments than high ones. So, from this point of view, SimbWealth is the winner.
The DNI for the BitTank Advance Miner plan is approaching 2% which we have suggested is getting into the level where there might be questions about sustainability of the program. Please refer to HYIP Insights #12 for a discussion of these interest ranges (you can read it here). So, there might be some doubt about the sustainability of the BitTank program. It is important to remember that, even if only one of a program’s investment plans creates problems, the entire program will fail. In the case of BitTank, the relatively high minimum investment for the Advance Miner plan will prevent many investors from investing in it. So, some pressure on the company to make the high interest payments of that plan will be relieved.
On the other hand, the DNIs of ALL the SimbWealth investment plans are below 0.5%. In the same Insights article I referred to in the previous paragraph, we suggested that HYIPs with investment plans having DNIs less than 1% are apt to be sustainable. So, SimbWealth appears to be on solid ground with respect to sustainability of its program.
So, it looks like we have TWO winners, one for profitability and the other for sustainability. The choice of which way to go now becomes a personal one that will depend mostly on the personality of the investor. If you want to make a good deal of money fairly quickly, you would probably choose BitTank. If you prefer stability, you would lean toward SimbWealth.
All of this considered, the safest way for an investor to go is probably to DIVERSIFY. In fact, this is what we always recommend when we review a program. One of many many options would be to invest $500 in BOTH the Simbwealth Real Estate plan and in the BitTank Standard Miner plan. After a year, the Simbwealth plan would have paid you a total of $1,250 (that includes the return of your initial investment). The BitTank plan would have paid you $1,750 — $500 more. The SimbWealth plan would have taken 147 days to break even while the BitTank plan would only take 47 — 100 days less. The hope of the investor would, of course, be that both the programs would still be paying a year down the road. However, if one of them should close, the hope would be that the other would make it to the end of the year and you would still come out ahead. If both of them close before the year is up, the investor at least hopes that he would have broken even before that happened.
Unfortunately, this type of reasoning is probably the best you can ever do when deciding whether or not to invest in an HYIP. To repeat, you first look for a program that offers reasonable investment plans — plans that can make you a satisfactory profit but do not promise returns that are obviously unsustainable. Second, it is always a good idea to diversify. The HYIP business is, indeed, a game that is constantly creating winners and losers — sometimes when you least expect it. So, try to give yourself a back-up in case the program you are “sure” of does something unexpected…
I won’t get into a discussion of the chances of these programs being real or not. I’ll leave that one up to you… 🙂
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