Is Cryptotab a just a Pyramid/Ponzi Scheme?
Whilst reading different reviews about Cryptotab, I seen a few people calling Cryptotab a scam, saying it had the properties of a pyramid / ponzi scheme.
The main point that is made by these people is that running Cryptotab alone will never make enough returns to justify doing it and as such it is required for there to always be new referrals, which inevitably has to reach a point of saturation.
There is logic to this, although I really do not see any harm that could would be done, anyway. The worse case scenario seems to be that there is a drop off in active miners in your network since they are not making enough from mining to make it worth using Cryptotab.
No one loses anything , apart from a bit of CPU.
Also, it is worth considering that as the number of active miners increases, so does the power of the mining base
as a whole, this may mean that in the future people are able to mine substantially more than they are now, which may make it profitable for anyone to literally just install this and run it in a Chrome browser. Which would surely be
popular and worth getting in early on.
I have seen other affiliates for Cryptotab speaking about the company having a plan to only initally run the 10 level referral scheme to grow the mining pool and then later make adjustments to this business model, whether or not this
will happen remains to be seen.
Crypotab currently are saying that the referrals brought in now will be lifetime referrals, so even if there are adjustments to the business model in the future, any referrals gotten before such time will continue to produce recurring incomes.
Whether or not Cryptotab is sustainable in the long term will come down to whether or not it becomes viable for users to make more in Bitcoin than they spend in electric mining said Bitcoins.
If it does reach that point, it will be a very attractive product, particularly if we see rises in the prices of Bitcoin and continued growth in interest in ways to earn Bitcoin.
It has to be said at this point, it is largely referral driven. Without any referrals you will make a nominal amount of Bitcoin and take a very long time to reach the minimum cash out level.
With a lot of referrals you can be making bits of Bitcoin every day from 1,000 s of peoples mining efforts. Even if you are not actively mining using Crypotab yourself.
With an active and growing network (powered by 10 levels) affiliates can make $10s and then $100s per day passively from Cryptotab.
This has lead to fast growth of Cryptotab (with over 250,000 downloads and counting) and if this continued growth leads to a stronger mining pool that increases the mining power of each individual we may see it getting more profitable for people only mining, which would fully stamp the legitimacy of the concept and surely lead to more growth.
At which point, affiliates with established networks could be making $100s and $1,000s a day worth of Bitcoin, passively. With all this considered, the question of whether Cryptotab is a pyramid / ponzi scheme comes down to two main
questions;
1 - How badly can anyone get hurt.
The answer here is clearly "not a lot". Unless there is malware issues which one would hope Google would pick up on quickly with an application from their Google Chrome store being downloaded 1,000s of times per day.
2 - Is there any scope for the mining to be profitable without referrals?
At the moment, it certainly is not, however, we may see this in the future. We may also see adjustments to the compensation plan which would further distance Crypotab from questions about this.
Download the Chrome extension now and have a look at how it works, then see what you want to do with it.
