{"id":2112,"date":"2017-10-15T04:40:04","date_gmt":"2017-10-15T04:40:04","guid":{"rendered":"http:\/\/emilynews.com\/blog\/?p=2112"},"modified":"2017-11-06T08:33:30","modified_gmt":"2017-11-06T08:33:30","slug":"loanbit-review-part-2","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=2112","title":{"rendered":"LoanBit — Review Part 2"},"content":{"rendered":"

This program has STOPPED paying! Do not invest there!<\/strong><\/p>\n

IMPORTANT NOTE!<\/strong><\/p>\n

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 <\/a>by clicking on the word “Introduction” in the small video screen on the program listing.\u00a0 We have added this feature to Emily News<\/em> in an effort to provide you, the investor, with quick access to program overviews.\u00a0 I think that you will agree that this is a neat addition to our website.\u00a0 While you’re at it, you might want to take a peek at the videos for some of the other programs that we list!<\/p>\n

Analysis of the Investment Plans.<\/strong><\/p>\n

In Part 1 of this review<\/a>, we tried to lay out the basic characteristics of the four investment plans offered by LoanBit<\/a>.\u00a0 In this second part of the review, we\u2019ll take a closer look at the plans.<\/p>\n

<\/a><\/p>\n

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.\u00a0 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.\u00a0 Clearly, these will be out of almost everyone\u2019s reach.\u00a0 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.\u00a0 With this is mind, the analyses that follow will emphasize the first two lower interest plans.\u00a0 However, from time to time, we will talk about the second two plans.\u00a0 They serve as an interesting example of how compounding can greatly increase the return on a person\u2019s investment.<\/p>\n

All of these plans are easy to analyze because they return your deposit at the end of the plan.\u00a0 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.\u00a0 So, the interest rate that any one of these plans pays is what we in Emily News<\/em> refer to as daily net interest or DNI.\u00a0 These plans graphically point out that DNI is a fictitious profit that doesn\u2019t really materialize until a plan reaches completion.\u00a0 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.\u00a0 This only becomes profit after your deposit is returned to you.\u00a0 I hope this explanation of DNI clarifies any questions you might have about the term.<\/p>\n

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%.\u00a0 In HYIP Insights #12<\/em> that we frequently refer to (and that you can read here<\/a>), we suggest that investment plans with an DNI of 2% or higher might have the cards stacked against them as long term survivors.\u00a0 If we discount the Business and Corporate plans which have DNIs of 3% and 4% respectively (because they probably won\u2019t 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.\u00a0 They are at the low end of the range of DNIs that we suggest might be unsustainable.\u00a0 These guidelines are, of course, just our opinions and we can definitely be wrong.\u00a0 In fact, we hope we are!\u00a0 But, the wise investor would do well to consider other factors when deciding whether or not to invest with LoanBit<\/a>.\u00a0 Fortunately, as we pointed out in Part 1 of this review, there ARE many other factors about LoanBit<\/a> that are quite attractive.<\/p>\n

To put some dollars and cents on all this, let\u2019s assume that we made the minimum investment of 0.3 BTC (around $1,200) in the Medium plan.\u00a0 It pays you earnings of 2.5% per day or, in this case, 0.0075 BTC (.025 x .3) per day.\u00a0 At the end of the investment period, you would have earned a total of 0.105 BTC (14 x .0075).\u00a0 This is roughly equivalent to $420.\u00a0 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).\u00a0 This is your profit for the investment plan IF it pays you your initial deposit back at the end of it.<\/p>\n

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.\u00a0 This is a disadvantage of this type of plan.\u00a0 You have to bite your nails till the very end.\u00a0 Fortunately, the LoanBit<\/a> investment plans are short.\u00a0 The first two — which are probably what everyone will use — are only two and three weeks long.<\/p>\n

Now, for the heck of it, let\u2019s take a look at the Corporate plan for two reasons:<\/p>\n