HYIP Haram?

High Yield Investment Program (HYIP) often is group together and known as online investment. To me the term may not describe an investment.

Dictionary.com says;

An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

So investment should incloud purchases, else it won’t be an investment anymore? I don’t know about that.. those with economic/finance background should be expert with it.

What I know is that , as general (well at least for those that I know exist in Internet), require people to deposit to them today, so tomorrow another people will put some more deposits and people from yesterday will get paid. Not agree? Yes, some HYIPs ‘maybe’ are so generous and they don’t depend on new members deposit to pay old members. These programs are very RARE and normally come with non-fixed profit payout because the profit shared will depend on how well they are doing with their main meny maker program such as advertisement, MLM, stock exchanges etc. But for the rest, normally they work on ponzi based system.

So what’s wrong with ponzi? Nothing wrong except that there will be a group of people who are loosing and there are lesser number of them who are ‘winners’.

Nice to read: http://www.muslimdi...d=2&thread_id=1

Posted March 30th, 2006 by mightyhitter under Uncategorized

 

4 Responses to “HYIP Haram?”

  1. abdurrahman alhadi Says:
    November 22nd, 2006 at 10:49 pm

    assalamou alaykoum i dont understand the language in the thread.Are Hyips halal or haram? thank you

  2. mightyhitter Says:
    November 23rd, 2006 at 7:41 pm

    alhadi, i better not to answer it as halal/haram due to the limititation of my knowledge.
    but I stand firm to my belief that ponzi-based system is not much differents to a robbery, reaping money out of unknowing participants.

  3. nomambocombo Says:
    December 25th, 2006 at 3:36 am

    hi,

    could u pls dun just simply said it like that??..do u have any proof?..Please give me some bases on what u have said and stand for…Thank u

  4. mightyhitter Says:
    December 26th, 2006 at 10:57 am

    hi nomambocombo,
    if it is regarding ponzi, than my justification is simple like this: for every cents that you receive as ‘profit’ in ponzi, there must be someone who are loosing it. if a ponzi program offer you to get a gain of 150% from a $100 initial deposit, than there must someone who will loose $50 money which is going for you. does it a clear trade? no. does it a donation? no. then what is the money for?
    i am saying someone is loosing money because pozi-based system is manipulating 2 people to pay single person, another 4 people to pay those 2, etc, etc. more and more people are loosing and only small earlier participants are getting paid.

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