Financial Videos

Common Bitcoin Scams And How to Avoid Them

August 16, 2017 By Alexa Mason Leave a Comment

How do you know a given technology has arrived? When the scammers start to show up. Since the introduction of Bitcoin in 2009, nearly $11 million has been stolen in numerous bitcoin scams. Despite having been prominent in the news, many people are still not familiar with digital currencies and can’t recognize common Bitcoin scams when they see them.

For investors who want to safely get into Bitcoin, this is the article for you.

There are a lot of different bitcoin scams. This article discuss four: fradulent wallets, brand impersonators, fake mining operations and Ponzi schemes.

1. Fraudulent Wallets

A fraudulent wallet is a Bitcoin application designed to look official in order to steal from you. Numerous fraud Bitcoin wallets enter and leave the market every day from credible stores on the Android and Apple platforms. These wallets upload malware along with their bogus application, allowing hackers access to critical information like your bank account and any Bitcoins you obtain. One way to avoid fraudulent wallets is to go with a well-known application like Ledger Nano, Trezor or Coinbase. You can also ask around.

2. Brand Impersonators

Brand impersonation is commonly used in Bitcoin scams. The scam works like this: a scammer sends a clickbait type message on social media. The message appears to come from a legitimate source. The message directs the user to a site which appears to offer a useful service. The site will then entice the user to enter in their private Bitcoin key. Once the user enters a key, it is stolen and the scammer will be able to spend directly from the user’s Bitcoin wallet. See the graphics below for examples.

Source: ZeroFox

The social media security firm, Zerofox.com, found over 40,000 brand impersonator social media profiles, gathering their research from platforms like Facebook, Twitter, Instagram, LinkedIn, Google plus, and Youtube.

3. Fake Mining Operations

Nearly all Bitcoin mining operations have been called scams at one point. To clarify, a fake mining operation is defined as one that takes payments from “investors” but never actually mines Bitcoin. Usually the best way around fake mining operations is to avoid getting involved in the first place. Exercise due dilligence. Red flags for fake miners are:

Newly registered websites with hard to identify ownership
Companies registered in locations with weak identity requirements
Evasion when asked to show proof of equipment
Initial payouts which stop and do not resume
Emphasis on marketing and promotion over operations
Advertising on channels which do not verify credentials.

4. Ponzi Schemes.

A Bitcoin ponzi scheme is an operation, website or organization which falsely markets itself as engaging in cryptocurrency investing or other activity. In reality, these organizations collect money from users and pay out returns for a period of time. After a while, the fake organization stops paying out and user’s funds are stolen. In cryptocurrency, these are usually “mining” schemes which collapse when users stop buying fake mining contracts. How can you avoid Bitcoin ponzi schemes? According to the SEC, the official characteristics of a Ponzi scheme are:

Source: SEC.gov

Avoiding Bitcoin Scams – Get Educated

Every investment in digital currency contains an element of risk. If you’re willing to take the risk, the best strategy is to educate yourself on how blockchain technology works. In case you aren’t clear – blockchain technology is the methodology underling Bitcoin’s value. A good resource is to check out Brock Pierce crypt currency expert. Pierce is an interesting guy, he was a child actor and appeared in the films Mighty Ducks (1992), Mighty Ducks 2 (1994) and First Kid (1996). In later life Pierce went on to become a leader in the Bitcoin community. Here is a great video where he walks you through the logistics of blockchains and how they work in today’s economy.

If you want to invest more into Bitcoin and stay safe, this video will help.

Ever run into trouble with digital currency? If so, leave us a comment below.

Photo credit: Sean MacIntee

How PewDiePie Raked in $7.4 Million Last Year as a YouTuber

July 9, 2015 By Will Lipovsky 5 Comments

Yep, PewDiePie made over $7 million dollars last year. This secures his spot as the wealthiest YouTuber of all time.

When this was recently revealed by a Swedish news outlet (Felix is Swedish), many people were outraged. Here are just a few (of the many!) hateful comments seen on social media:

I find what he does complete garbage. Same goes for people like paris, kardashians, etc…

The one thing that does bother me, and IS a real, serious reason is he makes more money than many of the games he “reacts” to. So… all the man hours, creativity and skill that go into making those games are worth LESS than his idiotic blubbering about them. THAT is SAD AS HELL.

pewdiepie got millions of dollars playing video games and all i got from it was divorced ha ha!!!

In fact, PewDiePie has reacted to these trolls. Watch his reaction video here. He basically says he’s no happier with money than he was when he was barely getting by. He says money doesn’t buy happiness.

However, money must buy something. He definitely wants more of it. No question about that. That’s apparent by the amount of ads he runs on his channel. Not to mention all the other ways he earns money.

This article is about how PewDiePie is able to earn over $7 million from playing video games…

PewDiePie’s Income Streams

YouTube Ad Revenue

As of this writing, his videos have approxmiately 9,388,272,000 views. Yes. Billions of views. These videos contain display ads. When someone clicks on an ad, PewDiePie gets 55% of the money that advertiser paid YouTube to be on their site. The remaining 45% goes to YouTube. If PewDiePie would stop caring about money, he could take down these ads in an instant.

Promotions

What PewDiePie has done is create a massive audience. He has millions of subscribers. Video game companies want him to play their games and hopefully have him say nice things about the product. The individual deals are private but it’s safe to assume companies would pay him tens of thousands of dollars to endorse their game. Maybe even hundreds of thousands. He has said he promotes video games for money.

Merchandise

He also owns PewDiePie.com. Here, you can buy video games and miscellaneous merchandise. There’s a $36 t-shirt as well as many other items.

Speaking Engagements

There are no trustworthy statistics on this but you can bet people are willing to pay big money to have the world’s most famous YouTuber appear on their stage. A lot of people say he’s an internet celebrity. Really, he’s a celebrity. Period.

The Future of PewDiePie’s Reign

While nothing is for certain, it’s pretty safe to say PewDiePie will have plenty of money in his future. In 2013, he made just $4 million. He has near doubled that in 1 year. The power of compounding, am I right??

If his life continues this way, he will earn 15 million this year.

There are about 8,760 hours in a year. That means 25-year-old Felix will earn $1,712 each hour of 2015.

But PewDiePie is not alone. There are thousands of YouTubers making six-figures and beyond each year.

Now to you… what are your thoughts on the PewDiePie enterprise? What does this tell us about where the world is headed?

People Dumpster Diving for Marijuana to Make Money

July 25, 2014 By Jeffrey Strain 4 Comments

More people are dumpster diving for weed

There are a lot of people who dumpster dive to make money, or just to get items for themselves. It can be a great way to get things for free, and people can often find good items to sell for a profit at garage sales or online auction sites. There is a thriving community which does this to help themselves, help others and make money.

In most areas in the US, dumpster diving is still legal (although you should always check with your local government to make sure it’s legal where you live before you begin doing it). With the legalization of marijuana in Colorado and Washington state, it seems there are a growing number of people dumpster diving specifically for weed. As legalization takes place in more and more states, there is a good chance growing numbers of people will do this. Why? As one person explains, he makes $2,500 a month jumping into a trash can to collect the trimmings and clippings from marijuana dispensaries and grow houses.

The businesses selling marijuana have to trim and clip the plants to sell in their stores. The inferior parts of the plants end up getting tossed out, and this is what many of the dumpster divers are after. Although it isn’t the highest quality, it’s still weed. Even better, it doesn’t cost a dime when obtained this way. The video below gives a brief explanation on why this is done:

So should you consider this as a money-making opportunity if you live in a state where weed is legal? Probably not. While dumpster diving is legal in most places, this is for trash containers which are freely open and can be accessed by anyone. It’s usually illegal if the dumpster is padlocked, which is the growing trend of these businesses, since their dumpsters are targeted so often. More have guard dogs and other security measures to keep people out of their garbage. You could also get a trespassing ticket if you jump into fenced-off areas in order to gain access to the dumpster.

In addition, it’s important to remember that just because you find the marijuana from a place where it was legally grown or sold, that doesn’t necessarily make it legal for you to resell it. In fact, since the selling of marijuana is highly regulated in most places, this could get you into even more trouble than dumpster diving for it. While it’s an interesting trend, it’s not one you want to jump onto simply to make a few extra bucks.

(Photo courtesy of Mark)

You’re Cutting Your Cake Wrong: The Scientifically Correct Way to Do It

June 19, 2014 By Jeffrey Strain Leave a Comment

You probably think you know how to cut a cake, but if you want to do it the scientifically correct way, the chances are high you’ve been doing it wrong all these years. If you cut a wedge when you’re ready to plate your cake, you’ve obviously failed to study the finer scientific points to make sure all the remaining cake slices are as fresh as possible the next time you want to have a piece.

The Scientific method for slicing cake was actually a rediscovery. Alex Bellos, the author of The Grapes of Math, was reading an early issue of Nature when he came across the interesting cutting method. About 100 years ago, the Victorian scientist Frances Galton submitted the letter to the magazine explaining a better way to cut a cake. Apparently, people were slicing their cakes incorrectly back then as well. While not a household name, Galton also happened to discover some other things in his life besides the best way to cut cakes, such as drawing the first weather map, fingerprints and coining the phrase “nature versus nurture.”

Instead of cutting out a wedge, which is the way the vast majority of people cut a cake, the scientific method cuts the cake all the way across the middle into a thin slice. The thin slice is then removed from the middle, and the two sides of the cake are pushed together. They’re then sealed tightly together by placing a rubber band around the cake. When this is done, there’s no interior part of the cake exposed to the air which keeps it from drying out. That means the next time you go to eat a slice of cake, your entire piece will be moist on the inside. Watch the video below and see for yourself:

While a method is quite clever, it obviously won’t work with all types of cakes. If the cake or other pastry has been covered with a somewhat hard frosting, as is shown in the video, then this method will work perfectly. If, however, you have your typical birthday cake with a soft frosting outside, trying to put a rubber band around it to keep it together could prove to be quite a mess.

Still, it’s worth giving a try. Even better, the next time you’re with others and get the chance, volunteer to cut the cake. Then watch the eyes of those around you grow wide as you break the common etiquette of how a cake is typically sliced, and put your new cake-cutting scientific knowledge to work.

The Warren Buffett Annual Glide Luncheon Auction Should Top $1 Million

June 1, 2014 By Jeffrey Strain 3 Comments

Warren Buffett 2014 annual Glide Foundation auction

For anyone interested in a private luncheon with Warren Buffett, your yearly chance has once again arrived. The 15th annual Glide Foundation Warren Buffet lunch auction begins today (June 1, 2014 at 7:30 pm PDT) and ends Friday, June 6 at 7:30 pm PDT. The auction has raised over $15 million for the charity since it started in 2000.

In order to be able to bid on the auction, you’ll need to fork over a minimum of $25,000 (the minimum starting bid) and be preapproved before you can make a bid. $25,000 is just the starting point, and the auction is likely to jump to a much higher price in the opening moments. The real bidding, however, is likely to come in the closing hour of the auction.

In 2013, the winning bid was just over $1 million ($1,000,100), but that was considered a huge bargain compared to years past. The 2012 price for lunch with the Oracle of Omaha reached $3.45 million ($3,456,789), the highest ever paid for the lunch, and the highest charity item ever sold on eBay. In the years 2008 – 2011, the top bids all topped $1 million, with most of them topping $2 million. It seems pretty likely that this year’s auction will again reach seven figures with the way that the stock market has performed, and go beyond the amount which was brought in last year.

The money from the auction goes to the Glide Foundation, which provides a number of services to the homeless and poor, including healthcare, housing support and rehabilitation, job training and meals. This is one of the major fundraisers for the charity which has an annual budget of $18 million. In addition to the money raised from the auction, the charity gets a huge amount of exposure from the event.

For the the winners, the topics of conversation at the luncheon are open to almost any topic, except what the billionaire might invest in next. He is more than happy to talk about his “boring” investing advice, his money tips, things that few people know about him, or virtually any other topic that may come up. You might even be able to get an inside scoop on any plans he has for the Billion Dollar Bracket Challenge in 2015.

If you’re curious as to why Warren Buffett does this lunch auction each year, the Glide Foundation asked him to answer this question in his own words. He saw the transformational power of this charity to those who the world had seemed to have given up on, and they way the charity was improving the lives of others. You can see the video below:

You don’t have to be rich to help out charities that you believe in. There are plenty of ways that you can help your favorite non profit charity for no cost, whether it’s the Glide Foundation or any other wonderful charities out there. All it takes is some of your time and the effort to want to give back. And as Warren Buffett notes, helping doesn’t just change the lives of those who are the beneficiary of the charity, it also deeply impacts those who volunteer and help.

What Does Dave Ramsey Think About Timeshares?

May 13, 2014 By Jeffrey Strain 16 Comments

Dave Ramsey hate timeshares not investment

While I don’t always agree with the financial advice that Dave Ramsey gives to his listeners, we’re both on the same page when it comes to timeshares. Ramsey doesn’t have a high regard for them, and he believes that people should stay as far away as possible from them. He doesn’t mince his words when it comes to these vacation options and views them as an outright scam. In his own words, this is what he has to say about them: “Timeshares are one of the biggest scams on the market today. Once you are stuck in one, you are stuck in a black hole.”

Below are some of the reasons that he feels timeshares are one of the biggest scams in the vacation industry:

They’re Not Affordable

For the mass majority of people who are targeted by marketers to buy timeshares, they’re not consumers who can really afford one. There are quite a few expenses that come with owning a unit, and these expenses are perpetual. In fact, they can increase over time. Just because the sales person who’s trying to sell you a unit tells you that you can afford it, that doesn’t make it reality. They’re an expensive vacation option, and the truth is that most people’s finances are not in good enough shape to be able to afford one.

They Don’t Make Financial Sense

Even if you have your finances in order and can afford to buy one, Ramsey points out that it still doesn’t make financial sense to do so. The average cost the timeshare is about $15,000 these days. It makes much more sense for you to invest this money than buying a vacation resort unit. The calculations become even worse if you have to borrow money to buy the unit, because you’ll likely end up paying double-digit interest rates to do so. Ramsey points out that if you invest that $15,000 instead of buying a unit with it, it would be worth over $1 million in 40 years.

Terrible Investment

There are still far too many people who believe that purchasing a timeshare is a good investment. Ramsey wants to make it clear to everyone that a timeshare is not an investment. What you’re actually doing when you buy a unit is prepaying your future hotel expenses each year for the rest of your life. Even worse, you’ve prepaid this amount whether you end up using it or not. Combine all this with the fact that they’re a depreciating asset, which will lose its value year after year (much like a car does), and it means that if you do end up buying one, you’re going to end up losing a lot of money in the end.

Selling Them Is Difficult

Another important reason to avoid buying one of these units is due to how difficult they are to sell when you no longer want one. The law of supply and demand rears its ugly head for anyone who owns a timeshare. There are far more people who want to sell than those who are interested in buying. This can mean that in some instances, you won’t be able to sell even if you want to, forcing you to continue to pay yearly maintenance fees.

It can even be difficult to give yours back to the resort, which is what Ramsey suggests owners try to do. Even if you offer it to them at no cost, the resorts have little incentive to do so if they still have inventory, since keeping you as an owner will mean you have to continue to pay the yearly maintenance fee. The bottom line is, when you want to sell, you’re going to have a difficult time, and if you are ultimately successful in selling your unit, you’re going to lose a lot of money doing it. The Federal Trade Commission (FTC) notes that you also need to be careful of the many reseller scams that are out there.

Don’t fall for the marketing tactics which resorts will use to try to convince you that buying a timeshare is a good deal. Take the financial advice of Dave Ramsey, and remember that it’s one of the biggest travel scams out there. Below you’ll find a video with some more of Dave Ramsey’s thoughts about timeshares:

Finally, if you want to get a better handle on your finances, consider getting a copy of Dave Ramsey’s The Total Money Makeover. The book outlines some basic truths about money and is designed to improve your financial habits. The book has sold something like 5 million copies – so it is well worth the read.

If you went against Dave Ramsey’s advice and now own a timeshare that you want to get out of; reach out to Newton Group Transfer at 1-888-549-4154 today. They are standing by to make the resell of your timeshare as smooth as possible.