This program has STOPPED paying! Do not invest there!
IMPORTANT NOTE!
As is true for a number of programs we list on our monitor, you can get quick access to a very informative informational video about LoanBit by clicking on the word “Introduction” in the small video screen on the program listing. We have added this feature to Emily News in an effort to provide you, the investor, with quick access to program overviews. I think that you will agree that this is a neat addition to our website. While you’re at it, you might want to take a peek at the videos for some of the other programs that we list!
Analysis of the Investment Plans.
In Part 1 of this review, we tried to lay out the basic characteristics of the four investment plans offered by LoanBit. In this second part of the review, we’ll take a closer look at the plans.
If you keep the conversion of $4,000 = 1 BTC in mind, you will quickly realize that the last two investment plans, the Business and Corporate plans, will be beyond the reach of 99.9% of all online investors. The Business plan has a minimum investment of 15 BTC or around $60,000 and the Corporate plan has a minimum investment of 50 BTC or around $200,000. Clearly, these will be out of almost everyone’s reach. Even the second plan, the Medium plan, with a minimum investment of 0.30 BTC or around $1,200 will be out of the reach of all but the more serious online investors. With this is mind, the analyses that follow will emphasize the first two lower interest plans. However, from time to time, we will talk about the second two plans. They serve as an interesting example of how compounding can greatly increase the return on a person’s investment.
All of these plans are easy to analyze because they return your deposit at the end of the plan. This means that all your daily interest earnings are PROFIT assuming the program stays in existence till the end of the investment term at which time your principal is returned. So, the interest rate that any one of these plans pays is what we in Emily News refer to as daily net interest or DNI. These plans graphically point out that DNI is a fictitious profit that doesn’t really materialize until a plan reaches completion. As an example, in the Start plan that pays you 2% for 7 days, you will only earn 14% in the course of the plan, which is far from breaking even. This only becomes profit after your deposit is returned to you. I hope this explanation of DNI clarifies any questions you might have about the term.
With this as background, looking at the interest rates for the four programs (which are their DNIs), we see that they range from 2% to 4%. In HYIP Insights #12 that we frequently refer to (and that you can read here), we suggest that investment plans with an DNI of 2% or higher might have the cards stacked against them as long term survivors. If we discount the Business and Corporate plans which have DNIs of 3% and 4% respectively (because they probably won’t be used due to the excessively high minimum investments required), that leaves the Start and Medium plans with DNIs of 2% and 2.5% respectively. They are at the low end of the range of DNIs that we suggest might be unsustainable. These guidelines are, of course, just our opinions and we can definitely be wrong. In fact, we hope we are! But, the wise investor would do well to consider other factors when deciding whether or not to invest with LoanBit. Fortunately, as we pointed out in Part 1 of this review, there ARE many other factors about LoanBit that are quite attractive.
To put some dollars and cents on all this, let’s assume that we made the minimum investment of 0.3 BTC (around $1,200) in the Medium plan. It pays you earnings of 2.5% per day or, in this case, 0.0075 BTC (.025 x .3) per day. At the end of the investment period, you would have earned a total of 0.105 BTC (14 x .0075). This is roughly equivalent to $420. Note that $420 is 35% of $1,200 (420/1,200 x 100) as the table of information for this investment plan predicts (please see Part 1 of the review). This is your profit for the investment plan IF it pays you your initial deposit back at the end of it.
Perhaps, it is worth emphasizing that a characteristic of most investment plans of this type, where your deposit is returned to you at the END of the investment term rather than AS PART OF YOUR EARNINGS, is that you will not break even until the end of the plan. This is a disadvantage of this type of plan. You have to bite your nails till the very end. Fortunately, the LoanBit investment plans are short. The first two — which are probably what everyone will use — are only two and three weeks long.
Now, for the heck of it, let’s take a look at the Corporate plan for two reasons:
- First, we will see how absurdly large the numbers are.
- Second, we will see the effects of compounding on interest earnings.
OK, the Corporate plan pays you 4% for 28 days. The minimum investment is 50 BTC (around $200,000!). With that as your investment and with no compounding, you will earn 2 BTC (around $8,000) per day for a total of 56 BTC (around $224,000). This is your net profit — as soon as your 50 BTC investment is returned to you. Now, let’s suppose that you invest the same amount and that you compound your investment by 50%, the maximum permissible under the investment plan. The website has a calculator that predicts a total gross income of 124.1 BTC. Of course, 50 BTC of this is your investment. So, your profit is 74.1 BTC (or around $296,400). Of course, I think all this is nonsense as I am 99.9999% sure no one would invest $200,000 in this or ANY online HYIP. The significant thing is that 50% compounding over a one month period increases your profit by almost 50% (from 56 BTC to 74.1 BTC). In general, if you have a plan that offers compounding AND IT RETURNS YOUR PRINCIPAL AT THE END OF THE INVESTMENT PLAN, there is great potential for extremely high profits when your principal is returned at the end of the plan. The catch, of course, is that the program might not last that long!
Personally, I wish that HYIPs wouldn’t offer investment plans with such insane minimum investment requirements along with promises of equally insane returns. While they might be legitimate (and I truly hope they are!), I suspect that, more than likely, they are “fishing expeditions” wherein the admin hopes to catch a “big fish” — and then disappear into the sunset before paying the promised interest earnings. We wrote an HYIP Insights article about these types of investment plans that you can read here.
Other Features of the Program.
All transactions with LoanBit are in BitCoin. The minimum withdrawal is 0.001 BTC, around $4.
LoanBit has a decent affiliate program. The “Standard” program, which is open to everyone, pays you 4%, 2%, and 1% of deposits in the first three levels of a person’s downline. The “Leader” program, which you have to apply for, appears to pay you up to 7%. The details are not completely spelled out in the website and probably depend on a person’s performance as an affiliate.
Support is by means of the standard contact form in addition to email and telegram. There is an Australian phone number. However, I wouldn’t count on it being any help. The website specifically says that there is no office assistance for individual clients.
In summary, the LoanBit program is well thought out and the website presentation is excellent. LoanBit offers four investment plans. The two lower interest plans appear to be sensible options for the online investor. On the other hand, the two higher interest plans appear to be out of touch with the online investment world as the minimum investments required to take advantage of them are probably way beyond the reach of the online investor. It is also unlikely that an individual would invest this level of funds with a company solely on the basis of information presented in its website. This said, you may want to take advantage of the LoanBit investment opportunity. As usual, we recommend that you make deposits with any one HYIP a small part of a larger diversified portfolio. And, of course, never invest more than you can afford to lose. Good Luck!
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