Bitcoin 4 Passive Review: Five-tier bitcoin cash gifting
There is no information on the Bitcoin 4 Passive website indicating who owns or runs the business.
The Bitcoin 4 Passive website domain (“bitcoin4passive.com”) was registered on the 25th of September 2016, however the domain registration is set to private.
Alexa currently estimate Malaysia and India as the two largest sources of traffic to the Bitcoin 4 Passive website. This strongly suggests Bitcoin 4 Passive is being run out of one of these countries.
The official Bitcoin 4 Passive Facebook group is adminned by an account bearing the name “Rayford Nicholas”.
The Rayford Nicholas Facebook account was set up earlier this year and appears to be bogus.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Bitcoin 4 Passive Product Line
Bitcoin 4 Passive has no retailable products or services, with affiliates only able to market Bitcoin 4 Passive affiliate membership itself.
Once signed up, a Bitcoin 4 Passive affiliate makes gifting payments to the affiliate who recruited them.
Bundled with each gifting payment are a series of advertising credits, which can be used to display advertising on the Bitcoin 4 Passive website.
The Bitcoin 4 Passive Compensation Plan
The Bitcoin 4 Passive compensation plan sees affiliates gift payments in bitcoin to eachother.
These payments are tracked through a 2×5 matrix.
A 2×5 matrix places an affiliate at the top of a matrix, with two positions directly under them (level 1):
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting each of the two positions into another two positions each.
The third, fourth and fifth levels of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level.
In total a 2×5 matrix has 62 positions.
Positions in the matrix are filled via gifting payments by directly and indirectly recruited Bitcoin 4 Passive affiliates.
Each level of the 2×5 matrix acts as its own payment tier as follows:
- Bronze (must make a gifting payment of 0.04165 BTC to the affiliate who recruited you) – receive 0.04165 BTC from two affiliates
- Silver (must make a 0.06678 BTC gifting payment) – receive 0.06678 BTC from four affiliates)
- Gold (must make a 0.1670 BTC gifting payment) – receive 0.1670 from eight affiliates
- Diamond (must make a 1.002 BTC gifting payment) – receive 1.002 BTC from sixteen affiliates
- Bitcoin (must make a 3.339 BTC gifting payment) – receive 3.339 from thirty-two affiliates
Joining Bitcoin 4 Passive
Bitcoin 4 Passive affiliate membership is tied to a minimum 0.04165 BTC gifting payment.
Full participation in the Bitcoin 4 Passive MLM opportunity costs 4.61643 BTC.
Bitcoin 4 Passive offers up five-tier cash gifting, which is illegal despite what is presented on the Bitcoin 4 Passive website.
IS THIS A PONZI OR A PYRAMID SCHEME??
A: a pyramid scheme means that only the top members get paid whereas member to member programs like Bitcoin 4 Passive permits.
A pyramid scheme pays affiliates to recruit affiliates. Who specifically gets paid is irrelevant.
Bitcoin 4 Passive combines both elements of a pyramid and Ponzi scheme, with payments made via cash gifting.
For a 4.61643 BTC investment, a potential 124.369 ROI is possible. That ROI is paid out of subsequently invested funds, making Bitcoin 4 Passive a Ponzi scheme.
Affiliate recruitment is required to generate the ROI, with affiliates paid directly and indirectly on recruitment. That makes Bitcoin 4 Passive a pyramid scheme.
Lastly with payments made between affiliates, that makes Bitcoin 4 Passive a cash gifting scheme.
The admins make the most money in matrix-based gifting schemes, typically through a bunch of preloaded positions.
These positions are the only ones to progress to the upper matrix tiers, swallowing up the majority of deposited funds in the process.
A few early adopters make a bit of money, otherwise once recruitment dies down the majority of Bitcoin 4 Passive affiliates will walk away with a loss.