Analyzing the MMM, what is the difference between it and Bitcoin?

A word called MMM has been eye-catching these days. I heard people mention it is related to Bitcoin, but it is actually a Ponzi scheme. It sounds very evil, so out of curiosity I registered an account to explore this snake den for everyone.

It is called point-to-point, but the loopholes are obvious

What exactly is MMM? Let me first analyze its principles and then define it.

MMM claims to be a peer-to-peer mutual assistance platform. On the platform, there is an internal currency called "马夫罗". What about Bitcoin? Don't worry, we will talk about it slowly.

One day, Alice heard about MMM from the MMM leader. She felt that this was a great opportunity and could make money! So she registered an account to try it out.

After Alice registered, she wanted to click the "得到帮助" button, but to no avail (she didn't pay and didn't have any Mavro!), so she applied for "提供帮助" and chose the bank account payment option (you can also use "Bitcoin"), and gave the system's highest setting of 60,000 RMB. This money was transferred to the bank account of the matched person, and the other party would provide you with 60,000 Mavro, the system's internal currency, and then these Mavro began to grow (1% per day, one month is the longest period, similar to the POS mechanism. After a month, 60,000 Mavro turned into 78,000 Mavro!)

At this time, BOB learned about this thing from Alice. Similarly, he also applied for "providing help". Alice already had 78,000 Mavro at this time! Alice can click "get help" (equivalent to selling Mavro). BOB happened to match Alice for a "peer-to-peer" transaction. Alice got 60,000 RMB and had 18,000 Mavro left. BOB lost 60,000 RMB and got 60,000 Mavro from Alice. Alice can sell the remaining 18,000 Mavro to others, and then make a profit of 18,000 RMB.

So what does the MMM system do? Through an algorithm, it generates Mavro coins similar to points. These points can "reproduce" themselves according to the time algorithm. Users trade with each other in RMB or Bitcoin, and then Mavro acts as a "medium of love"... Hey, why is it a bit like Q coins! But that's all, it's not very attractive, what can be done?

Don’t worry, MMM has another trick up her sleeve!

Back-up plan (I): "Single-line recruitment mode"

You can get a bonus by recommending others. You can get a bonus of 10% of the deposit amount of the recommended person. What does it mean? That is, if I recommend you to play, and you "provide help" of 10,000 yuan, I can get 1,000 yuan worth of Mavro. After two weeks, after the Mavro is confirmed, I can use it to withdraw cash. When you sell 10,000 and then deposit 20,000, I will get another 1,000 yuan Mavro, and so on. There is no upper limit.

Second move (II): "Multi-level recruitment model"

For example, Alice is the leader, she is BOB's "upline", BOB is Jake's "upline", Jake is James' "upline", and James is your "upline", then Alice can get a reward of 5% of BOB's deposits, a reward of 3% of Jake's deposits, a reward of 1% of James' deposits, and then a reward of 0.5% of your deposits, and so on, 0.3%, 0.1%, 0.05%, 0.03%, 0.01% (all lower levels also have a reward of 0.01%), and there is no limit to the number of "downlines".

So, according to the number of "downlines" you develop, you can get a lot of "rewards". Of course, all these rewards come from the system, and they are all Mavro! What is Mavro for? It records how much "help" (money) you provide, and then you can get how much help, the help (money) from others to fill your Mavro.

Oh my god, this Mavro seems to reproduce very quickly!

The third trick: Sign up and get a bonus

Depending on the amount of deposit, players will be given a bonus of 20-100 USD. Does it look tempting? Don't be too happy too soon. You need to deposit 50-499 USD to have a chance to get a bonus of 20 USD. If you cancel in advance, you won't get a dime! You need to deposit 500-2999 USD to get a bonus of 50 USD (freezing period is one month). You need to deposit more than 3000 USD to get a bonus of 100 USD (freezing period is one month. If you withdraw in advance, you know what I mean.)

OK, now that I have explained the model, do you understand it? If not, it’s okay, I will analyze it again.

What is the reason for running away?

First of all, when you enter the entire MMM system, you cannot "get help" (withdraw cash) . If you want to play this game, you need to invest money into this black hole, and then you will get the corresponding Mavro points, which can multiply by time (fixed 1% per day). You can also get points by pulling "downlines". Then the question is, where do the Mavro points of the second-level people in the entire network come from? MMM top leaders, that is, the few people who have the right to manage the system, can give as many points as they want anyway!

Finally, let’s take Alice and BOB as an example. Alice is a group of second-level agents, and BOB is Alice’s “downline” group. Among them, Alice’s group used 100 million RMB to exchange for 100 million Mavro. In the next month, the Mavro in the hands of Alice’s group has become 130 million through fixed reproduction. Who will pay for it? Naturally, it is the BOB group. The Alice group received a 15% reward by “recruiting people”, which is 19.5 million Mavro. Assuming that all can be withdrawn, then MMM has a total profit of 80.5 million yuan, Alice’s group has a profit of 49.5 million yuan, and the BOB group has received 130 million yuan in exchange for 130 million Mavro! Then, if the BOB group wants to make a profit, it must pull “downlines” again. When it is no longer possible to pull people into the game, for example, in this example, the Alice group can only help the BOB group, but according to the rules, the Mavro is still growing every day. Who will pay for it? Of course, it is impossible for the top leaders of MMM to pull. When they see that the situation is not right, the leaders choose to run away...

Someone said, isn’t this just a game of passing the parcel? Whoever takes the last baton will be unlucky.

To be precise, it is a庞氏游戏that attracts players to join the game through high returns. In fact, there are many people in the game who are very clear about the nature of the event. Why can we confirm that it must be a scam? First of all, its return rate is abnormal. According to the rules, the number of Mavro increases by dozens of times every year, and the same is true for the funds needed to maintain the entire game. Furthermore, the entire MMM company has no other business model except this mutual aid platform. After illegally raising funds, it does nothing. You say it will not run away, but will it give you money in the end?

After all this talk, what does MMM have to do with Bitcoin? In fact, Bitcoin is just an可选的支付工具, treated the same as a bank account.

The Difference Between Bitcoin and a Ponzi Scheme

Nangong Yuan said: When I introduce Bitcoin to someone, he said it is very similar to MMM. How can I explain to him clearly that MMM is a pyramid scheme and Bitcoin is not? It is very difficult.

Since some people still cannot distinguish the difference between Bitcoin and Ponzi schemes (MLM), I would like to write down my own superficial views here, hoping that it will be helpful to you.

1. A big feature of the Ponzi scheme is that some people will offer high回报率to attract new investors. However, in the case of Bitcoin, normal Bitcoin holders will not offer high returns to anyone. Developers and many rational enthusiasts usually remind people of the risks when explaining the principles of Bitcoin. However, in the Bitcoin ecosystem, speculators still account for the majority, and many people come for money. Therefore, a situation has emerged. When Zhang San introduces it to others, he will say, "So-and-so bought so many Bitcoins in 2010, and earned thousands of times a few years later," and "The Bitcoin price is predicted to be $1 million, for sure!" This is actually like Li Si saying to others, "10 years ago, I bought 10 houses within the second ring road of Beijing. Look at what's happening now." Are these attractive? Compared with Ponzi schemes, they are weak. Look at how Ponzi schemes work! The typical example is "If you buy it today, it will rise by 30% in a month!" and "You missed Jack Ma, so why do you miss it again..." If you meet these people, you'd better be careful.

2. Let's talk about the difference between the two mechanisms. Some people will say, hey, this MMM is also a peer-to-peer transaction, and Bitcoin is also a peer-to-peer transaction! Yes, but in the peer-to-peer link of MMM, someone acts as a "Mavro" supplier upstream. In the entire game, there is only one role that has the right to "get help" without spending money, that is, the creator of the game . He can make "Mavro" infinitely. As long as there is money coming in, he can "get help" infinitely. But in Bitcoin, the founder Satoshi Nakamoto does not have this power . If he wants to make Bitcoin, he is equal to everyone else, and he also needs to buy mining machines to calculate and mine. Then someone else said, how to explain the 1 million Bitcoins in Satoshi Nakamoto's hands? Didn't those who bought the coins later take over for him? First, we currently know that Satoshi Nakamoto's BTC address has not moved any coins. He still holds Bitcoin and has not exchanged it for legal currency. So if Bitcoin is worthless, Satoshi Nakamoto will not get any benefits. Second, they were the first to mine, and there was no competition at the time. It's like the CEO of Apple holding a bunch of company stocks. It's the same reason. Satoshi Nakamoto holds 1 million BTC, which is less than 5% of the total 21 million. I don't think this is a lot. Finally, Bitcoin is open source, and its ledger is transparent and traceable, so you can verify all of what I said above.

3. Let's talk about what problems both of them solve, which is what we call the value. What has MMM solved so far? What we see now is that it can achieve the so-called mutual assistance of love between "upline" and "downline", so when the development of love "downline" stagnates, the whole system will soon collapse, and then we will see that a large number of Mavro will not be redeemed, while the founder of MMM will make a lot of money.

Bitcoin is a decentralized payment method. Because there is no promise of high interest rates, the entire Bitcoin system can run smoothly even without the participation of latecomers. In addition, the underlying technology of Bitcoin, blockchain, has also been recognized by the financial world. Institutions including Goldman Sachs, JPMorgan Chase, Citibank, and Nasdaq are also testing blockchain technology. These are all recognitions of the value of Bitcoin technology. So if you ask me what the value of Bitcoin is, I think what major banks and institutions are doing is a good answer.

4. Finally, let's talk about the difference between the two, which is very easy to distinguish. How will the two systems perform after the founders run away? The Ponzi scheme collapsed! What about Bitcoin? Satoshi Nakamoto chose to run away as early as 2010. Who is he? How many people? Where is he? These are still unsolved mysteries, but Bitcoin is still alive and well. This is the difference.

By Emusher
Source: Babbitt Information