BitEstate Review: Bitcoin real estate services = 5292% annual ROI?
BitEstate provide no information on their website about who owns or runs the company.
The BitEstate website domain (“bitestate.biz”) was privately registered on November 7th, 2017.
Although BitEstate claims to be operated out of London, UK, it is far more likely that whoever is actually running it is based out of Russia or the Ukraine.
Alexa estimate Russia is currently the largest source of traffic to the BitEstate website (20%).
Russian is an offered language on the BitEstate website. BitEstate also operate a VKontakte social media account, which the company publishes content to in Russian.
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.
BitEstate has no retailable products or services, with affiliates only able to market BitEstate affiliate membership itself.
The BitEstate Compensation Plan
BitEstate affiliates invest bitcoin on the promise of an advertised ROI.
- Singapore Tanglin Plan – invest 0.001 to 1 BTC and receive up to 176% over 32 days
- Dubai Marina Plan – invest 0.01 to 1.5 BTC and receive up to 145% over 10 days
- Miami Beach Plan – invest 0.05 to 2 BTC and receive up to 240% over 20 days
BitEstate pay referral commissions on invested funds down two levels of recruitment (unilevel):
- 9% on level 1 (personally recruited affiliates) and
- 3% on level 2
If a BitEstate affiliate invests 0.1 BTC and recruits at least ten investors, referral commissions are increased to 12% on level 1 and 6% on level 2.
BitEstate affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the BitEstate MLM opportunity requires a minimum 0.001 BTC investment.
BitEstate claim to generate external ROI revenue through bitcoin real estate transactions, property management activities and short-term financing in bitcoin.
The company provides no evidence of any of these business activities taking place.
Furthermore, BitEstate’s business model fails the Ponzi logic test.
If BitEstate’s anonymous owners already had a real estate business generating in excess of 290% every 20 days (that’s 5292% annually without compounding), they’d have no reason to solicit investment from randoms over the internet.
The reality of BitEstate is the only verifiable source of revenue entering the company is new investment.
Using new investment to pay existing investors makes BitEstate a Ponzi scheme.
As with all Ponzi schemes, once affiliate recruitment slows down so too will new investment.
This will starve BitEstate of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of investors lose money.