Friend was brainwashed by MLM-/ponzi investment scam. What can I do?
Go to the police. This is fraud and is illegal. Sure, this will hurt your friend but better now then when he starts abusing of his position to fraud even more people... Original comment by Bakuriu sorry for not giving credit "If this is your friend, and he that convinced he will ""get rich"" from this then there's really nothing you CAN do.  You've obviously done your best to explain the situation to him, but he's been caught up in their sales pitch, and that's more convincing to him. I worked in sales for many years, and the answers he gives you (the one about not needing to know the details of how your smartphone works is a classic variation of typical objection-handling that salespeople are taught) proves that he has been sucked in by their scheme. At this stage, all you're going to do is ruin your friendship with him if you continue to press the matter, because he has made it clear he can't be convinced that this is anything other than legitimate.  The reality is, he is probably in too deep at this stage to just walk away from it, so he has to convince himself that he made a wise choice. Schemes like this use a ""scarcity"" approach (there's only so much to go around, and if you don't get yours now then someone else will get it) coupled with ego-boosting (boy, Mr. Prospect, this is such a great opportunity, and you're one of only a few who are sophisticated enough to understand and take advantage of it) to get people to lower their guard and not ask a whole lot of probing questions. Nobody wants to feel stupid, and they don't want others to think they're stupid, so these schemes will present the information in such a way that ordinarily prudent questions come across as sounding dumb, making the questioner seem not so smart.  Rather than walking away from it, peoples' pride will sometimes make them double down on it, and they'll just go along with it to come across as though they get it, even when they really don't. The small payouts at early stages are a classic sign of a Ponzi scheme.  Your friend will never listen to you as long as those little checks continue to come in, because to him they're absolute proof he's right and you're wrong.  It's those checks (or payouts, however they're doing it) that will make him step up his efforts to recruit other people into the scheme or, worse yet, invest more of his own money into this. Keep in mind that in the end, you really have no power to do anything in this situation other than be his friend and try to use gentle persuasion.  He's already made it clear that he isn't going to listen to your explanations about why this is a scam, for a couple reasons.  First (and probably greatest), it would be an admission that he's dumb, or at least not as smart as you, and who wants that?  Second, he continues to get little checks that reinforce the fact this must be ""real"", or why else would he be getting this money?  Third, he has already demonstrated his commitment to this by quitting his job, so from his point of view, this has become an all-or-nothing ticket to wealth.   The bottom line is, these schemes work because the sales pitch is powerful enough to overcome ordinary logic for people who think there just has to be an easy way to Easy Street. All you can do is just be there as his friend and hope that he sees the light before the damage (to himself and anyone else) gets too great.  You can't stop him from what he's doing any more than you can stop the sun from rising as long the message (and checks) he's getting from other people keep him convinced he's on the right path. EDIT After reading the comments posted in this thread, I do want to amend my statements, because many good points have been raised here.  You obviously can't just sit by and do nothing while your friend talks others into taking the same (or worse) risks that he is.  That's not morally right by any measure At the same time however, be VERY careful about how you go about this.  Your friend, as you stated, sounds pretty much like he's all in with this scheme, so there's definitely going to be some serious emotional commitment to it on his part as well.  Anyone and everything that threatens what he sees as his ticket to Easy Street could easily become a target when this all comes crashing down, as it inevitably will.  You could very well be the cause of that in his eyes, especially if he knows you've been discouraging people from buying into this nightmare. People are NOT rational creatures when it comes to money losses.  It's called ""sunken costs"", where they'll continue to chase their losses on the rationale they'll make up for it if they just don't give up.  The more your friend committed to this, the worse his anxieties about losing, so he'll do whatever he has to in order to save his position.  This is what gamblers do and why the house does so well for itself. Some have suggested making anonymous flyers or other means of communicating that don't expose you as the person spreading the message, and that's one suggestion.  However, the problem with this is that since the receiver has no idea who sent the message, they're not likely to give it the kind of credibility or notice that they would to something passed to them by a person they know and trust, and your anonymous message will have little weight in the face of the persuasive pitch that got your friend to commit his own money (and future). Another problem, as you've noted, is that you don't travel in the same circles as the people he's likely to recruit, so how would you go about warning them?  How would they view their first contact with you when it comes with a message not to trust what someone else they already know is about to tell them?  Would they write it off as someone who's butty?  Hard to tell. Another huge ploy of these schemes is that they tend to preemptively strike at what you propose doing -- that is, warning people to stay away.  They do this by projecting the people giving the warnings as losers who didn't see the opportunity for themselves and now want to keep others away from their own financial success.  They'll portray you as someone who isn't smart enough to see this ""huge opportunity"", and since you can't understand it, you don't think anyone else does either.  They'll point out that if you were so good with finances, why aren't you already successful? These guys are very good, and they have an answer for every objection you can raise, whether its to them or to someone else.  They've spent a long time honing their message, which makes it difficult for anyone to say something persuasive enough to sway others away from being duped.  This is a hard path, no doubt. I hope you are able to warn others away.  Just be aware that it may come at a cost to you as well, and be prepared for what that might be. I hope this helps. Good luck!" "I will disagree with some of the other answers here.  In my view, the most important dimension of the situation is not your friend's potential loss but the potential losses of the people he may convince by using his position as youth group leader, etc., to draw more them into the scam. Exactly how to handle this depends on many factors that aren't mentioned in your question (and probably rightly so, as this aspect of the situation moves beyond personal finance).  For instance, if your friend is a ""pillar of the community"" who is widely trusted, and you are not, there may be little you can do, since people will believe him and not you.  If you have some influence over the groups he is trying to recruit, you can attempt to provide a counterweight to his recruitment activities. Again, how to do this depends on other factors, such as how he is recruiting them.  If he is just privately contacting individuals and inviting them to these meetings, you may have to just keep your eyes peeled for anyone who seems tempted and try to dissuade them before they suffer the ""brainwashing"".  If he actually tries to do some sort of public recruitment (e.g., holding a meeting himself), you could try to inject doubt by, e.g., attending and asking probing questions to expose the dangers.  If you think the danger is widespread, you could consider taking some more public action, like writing a column in a local paper about this organization. Of course, another major factor is how much you think people stand to lose by this.  However, in your question you indicated that your friend has invested ""multiple month or years of income"".  If he intends to pressure others to invest similar amounts, this sounds to me like enough danger to warrant some preventive action.  Few people can afford to lose months or years of income, and sadly those most vulnerable to a scammer's siren song are often those who can least afford it.  It doesn't sound like a situation where you'd have to devote your life to the cause of stopping it, but if I knew that dozens of people in my community stood to lose years of income, I'd want to make at least a small effort to stop them, rather than just keep my mouth shut. In doing this, you may lose your friendship.  However, you stated that your goal is to resolve the situation in a way that is ""best with lowest loss of money for everybody"".  If you really take this utilitarian view, it is likely that you may have to give up on the friendship to prevent other people from losing more money." "Even though this is really a psychology question, I'll try to give you an answer. You do nothing but stay away.  What's going on is too small to matter. Bernie Madoff took investor's money and scammed them for $15B. That's B, billion, 9 zeros (Yes, I realize the UK Billion has 12, these are US Billion). Harry Markopolos was on to him, and presented his evidence to the government, but ""No one would listen."" In quotes because that's the title of the book he published on his experience. Even Barron's had an article suggesting that Madoff's returns were impossible. Eventually, it came to light. In my own experience, there was a mortgage acceleration product called ""Money Merge Account."" It claimed to help you pay off your mortgage in a fraction of the time ""with no change to your budget."" For two years or so, I was obsessed with exposing this scam, and wrote articles, nearly every week discussing every aspect of this product. Funny how even though mortgages are math that's pretty easy to explain, few sellers wanted to talk about the math. Using the same logic that you don't need to understand how a car works as long as you know how to drive. There were some people that would write to tell me I saved them the $3500 cost of that product, but mostly I argued with sellers who dismissed every word I wrote as if the math were incomprehensible to anyone but the software guys who wrote it. In the end, I had compiled a PDF with over 60 pages of my writing on the topic, and decided to call it quits. The product was recycled and now is sold as ""Worth Unlimited,"" but the software is the same.  This is all a tangent to your problem. It simply offers the fact that the big scam, Bernie, continued for a long time, and people who were otherwise intelligent, fell for his promises, and didn't want to believe otherwise. The mortgage software had many bloggers writing. Searching on the web found a lot of discussion, very easy to find.  People will believe what they wish. Tell an Atheist that God exists, or a believer that He doesn't, and your words will fall on deaf ears. Unfortunately, this is no different." "First, there are MLM businesses that are legitimate and are not Ponzi schemes; I actually work with one (I will not name it lest I give the impression of trying to sell here). One thing I learned was how to respond when a prospect raises objections related to the actual scams, which are abundant; the answer being to point out, and you mentioned this yourself, that in an illegitimate scheme, there is no actual product being offered - the only thing money is ever spent on is the expectation of a future profit. Ask your friend, ""Would you buy the product this company sells, at the price they ask, if there were not a financial opportunity attached to it?"" If not, ""How can you expect anyone else to buy it from you?"" There are only 3 ways he can respond to this question: he can realize that you're right and get out now; he can change the subject to the concept of making money by climbing the ranks and earning off of a salesforce, in which case it's time to educate him on Ponzi; or he can claim to be able to sell something he doesn't believe in, in which case you should run fat, far away. If he does indicate that he would be a customer even without the chance to sell the product, then offer him the chance to prove it, by giving you one sales pitch on the condition that he is not allowed to breathe a word about joining the business. Do him the courtesy of listening with an open mind, and decide for yourself whether you could ever be a customer. If the possibility exists, even if not today, he has found one of the few legitimate MLM companies, and you should not try to stop him. If not, you'll have to determine whether it's because the product just isn't for you, or because it's inherently worthless, and whether you should encourage or discourage your friend going forward." "So here's the sad truth. He might actually be making a return on his investment. Not because it's right or because the system works, but in all these schemes there are a range of people that actually do make money.  In addition to that, there is that fact that he ""believes"" that he is doing a good thing, and is unwilling to discuss it.  So, if he is making, even a tiny return, and really believes that he is making a large return, or that that large return is just around the bend, your never going to convince him otherwise.  You have two real options; If he will listen, go though and look at money in v.s. money out. If money out is larger then money in, your screwed.  Make sure to point out that he should look at real money in (left a bank account) and real money out (deposited to a bank account). Again be prepared for the fact that he is actually making money. Some people in the pyramid will make money, it's just never as much, or as many people as they make it out to be.  Don't attack the system, attack other aspects. Try and argue liquidity, or FDIC insurance. Again not trying to show why the system is bad, but why a investment in foo instead may be better. If nothing else, go with diversify. Never put all your money in one spot, even if it's a really good spot. At least in that case he will have some money left over in the end. That said, your friend may not go for it. May just put on blinders, and may just stick finger in ears. Move to option two. Respect his wishes, and set boundaries. ""Ok, I hear you, you like system X, I won't bring it up again. Do me a favor, don't you bring it up again either. Let's just leave this with religion and politics."" If he continues to bring it up, then when he does, just point out you agreed not to discuss the issue, and if he continues to push it, rethink your friendship. If you both respect one another, you should be able to respect each others' decisions.  If you can't then, sadly, you may need to stop spending time with one another." I believe the only thing you haven't mentioned to him is the possibility that his activity is criminally fraudulent. I would sit him down, and say something substantially similar to the following: We've talked about your investment before, and I know you believe it's fine.  I just want to make sure you understand that this is very likely fraudulent activity.  I know you believe in it, but you've said you don't understand how or why it works.  The problem with that is that if it is a fraud you can't protect yourself from criminal prosecution because you didn't understand what you were doing.  The prosecutor will ask you if you asked others to give you or the organization money, and then they will convict you based on trying to defraud others. It doesn't matter whether you did it on purpose, or just because you believed the people you are investing in. So I very strongly advise you to understand exactly what the system is, and how it works, and then make sure with a lawyer that it's legal.  If it is, then hey, you've learned something valuable.  But if it's not, then you will save yourself a whole lot of trouble and anguish down the road if you step away before someone you attract to the investment decides to talk to their accountant or lawyer.  A civil lawsuit may be bad, but if you're criminally prosecuted it will be so much worse. Now that I've said my piece, I won't talk to you about it anymore or bother you about it. I wish you luck, and hope that things work out fine. I wouldn't talk to the police or suggest that I'd do anything of that nature, without proof then there's no real way to start an investigation anyway, and unfortunately scams like this are incredibly hard to investigate, so the police often spend little to no time on them without a high level insider giving up evidence and associates. Chances are good nothing would happen to your friend - one day the organization will disappear and he won't recover any more money - but there's a distinct possibility that when that happens, the people below him will come for him, and he won't be able to look further up the chain for help. Perhaps the threat of illegal activity will be enough to prevent him from defrauding others, but if not I think at least you can let it go, and know that you've done everything for him that might work. The title of your question basically asks: What can I do? And you state this regarding the meeting and “advice” they gave towards criticism of their method: While this they also indoctrinated that you should avoid talking to   people talking bad about it (or say it is scam) because you gain no   money from them and they just want to destroy your business. First, you really cannot do anything to “save” your friend if they have bought this nonsense. You are right, it’s a scam. But past stating as such to your friend, there is not much you can do past shielding yourself. The reality is this: Any scenario you are in where you cannot ask basic questions and get a reasonable response or are given—at least—the option to walk away unscathed or uninsulated is basically a cult-like mentality. Simple as that. If the first thing someone tells you is “Don’t listen to others, just listen to me…” then you need to excuse yourself to go to the bathroom or something and just leave. From my personal experience meeting people who are successful and have power, they always—and I mean always—ask questions and are critical of things they invest in… Whether that investment is time, money or just basic mental energy. Rich people are just like you and me! Except they have more money so they can take bigger risks. Critical thinking and the ability to walk away from something are key life skills. Now others have talked salesman psychology which is on point. But here is something else you brought up in your question: He also wants to use his position as respected member of multiple   local youth and other communities to get their members as referals or   in his words “…to give them the oppurtunity to also simply earn   money.” Okay, so you can set personal boundaries between you and this clown, but you cannot stop him. But if he plans on targeting people and organizations in your community, you can warn them about him and his behavior and this scam. Chances are other people will know right away it’s a scam, but honestly if you feel the need to help others, that’s the most reasonable thing you can do to help them. But whatever you do, don’t take any of this emotional crap personally. If anything, maybe you can learn some reverse salesman techniques to get this “friend” to disengage. Such as only meeting with them in public and if they say something really vile to you, repeating what they said back to them as a question… Maybe even louder so everyone can hear. Remember a harsh reality of life: Public shaming can work to change someone’s behavior but you never want to do something like that unless you have utterly no choice. That last bit of advice is pretty harsh, but the reality is at some point you need to do something to “smack” reality into the situation. As others have stated, it will be very difficult for you to turn your friend around. He has already demonstrated great commitment. What can I do? There may be other people (perhaps mutual friends of you and this man) who are in danger. He may try to get them into this (as he apparently tried to with you). If this was me, I would try to warn the mutual friends of me and him. It's easier to get to them before they have been exposed to the brainwashing. So I would: Yes, I realize this means you're going behind his back, talking to his friends, etc. But I believe these people also deserve to be warned. They are in danger of being adversely affected by what he is doing. Chances are high your friend isn't in it for the money, but the community or some vague dream of having a future income-generating side business because he can't get a loan for a 7-11 franchise. I run a few successful online businesses and had an import/export so naturally I run into these guys looking for advice on selling their MLM wares easier. I always point out they can make a lot of money cutting out the middle man MLM distributor and buy the same products from eBay or the same local supplier the MLM uses for a fraction of costs...then collect all the profit sans kickbacks to their host MLM goon/sponsor/father. I've never had anyone that bailed on the MLM, but I could see their eyes gloss over after they realized their own middle man is holding them back from making a lot of money (assuming they could offload that stuff). People actually in it for the money tend to bail (better sales job exist, MLM dreams don't pay rent, etc.) so you'll probably just need to isolate your friend from these losers somehow. You could investigate his sponsor and find out how much money he's actually making....if he tells your friend he's rich, but you find out he lives in the slums with his mom, your friend might bail on friendship/association with the group out of sheer disgust. It's the friends, not the logic you need to attack. His MLM friends would consider it a betrayal if he left them so you need to show him it's the MLM group that's betrayed his friendship. Point out all the long-term members driving junky cars to events who brag about their $$$. Laugh at the piss poor finance credentials of the local group leaders....ask where the investor perks are and suggest the sponsor/leaders are just hording them. Point out that he's a success and the fellow team members are just milking him to prop up their failing investments/sales/recruitment numbers. Nobody wants to let a team down....but the team isn't good enough for him. Deep down he knows the logic is questionable or at least risky/improbable, but his faith in the good intentions of his MLM cohorts is high.....crush that faith and all he's left with is bad finance tips or cheap protein shakes. The one thing your friend needs to understand is for every dollar paid out, there is somebody paying that dollar in.  The mark of a Ponzi scheme is that it feeds on itself. The stock market has trade volumes where it almost meets the definition of a Ponzi scheme.  However, it deals with shares in actual production facilities (rather than only financial institutions) and provides means of production in return for large amounts of the profits.  So there is someone legitimately expecting to pay back more than he gets out, in return for the availability of money at a time where he could not finance matters except by credit. With your friend's scheme, there is nobody expected to pay more than he gets out. Nail him down with that: every dollar paid out has to be paid in.  Who is the one paying? At this point of time, it sounds like there will be two possible outcomes.  You'll be visiting your friend in debtors' prison, or you'll visit him in criminal prison.  If you highly value your friendship, you might get him out of the former with your own money.  You won't be able with the latter.  And if you let him exploit his standing for scamming his community, make no mistake, it will be the latter. I don't envy you. If this 'scam' has a name, address and/or phone number, I forward it to the FBI anonymously. That is my advice.  You may also wish to consult a lawyer. Your friend is investing time & money in a business that does not list an address or phone number on its website, not even in its 'press kit'. Even when they make a press release about moving into a new building, it does not list the address or even the street! C'mon, this is obviously a scam.  No real business acts like this. I don't want to repeat things that have already been said as I agree with most of them. There's just one little thing I'd like to add: If things go the way we're all expecting, this guy will eventually be in desperate need of a friend as he is extremely likely to lose most of his friends sooner or later. Perhaps all you can do is signal that you will not support him now (for obvious reasons), but that you'll be there for him when he may need you in the future...
The only way for a mutual fund to default is if it inflated the NAV. I.e.: it reports that its investments worth more than they really are. Then, in case of a run on the fund, it may end up defaulting since it won't have the money to redeem shares at the NAV it published. When does it happen? When the fund is mismanaged or is a scam. This happened, for example, to the fund Madoff was managing. This is generally a sign of a Ponzi scheme or embezzlement. How can you ensure the funds you invest in are not affected by this? You'll have to read the fund reports, check the independent auditors' reports and check for clues. Generally, this is the job of the SEC - that's what they do as regulators. But for smaller funds, and private (i.e.: not public) investment companies, SEC may not be posing too much regulations. "The lottery is not a scam.  It really does what it says it does, the odds are just tremendously not in your favor.  MLMs promise a business opportunity where there isn't one and the only real money comes from signing up new people.  I've been dragged to a number of these things.  The last one was maybe ten years ago, it was a ACN meeting at a co-worker's house.  The invitation was vague, a number of other co-workers were going, and there was free food.  I immediately knew what it was when they started the presentation.  I listened as they went on about the untold riches and working for yourself and all of the usual crap.  Then they told us that we could ask questions.  Anything we wanted.  Well, OK.  Thing is, they don't get many people showing up to these things who are both lawyers and accountants.  Like me.  I started asking for financial documents, tax returns, verified audits, the form of the contract between ACN and you, and a few federal regulations.  That did not go over so well.  I pointed out that it was all standard due diligence.  I added that I would be happy to sign a non-disclosure agreement before showing me the books.  As you might guess, they didn't have any real answers and the guy doing the presentation looked like he wanted to punch me in the face.  Nobody signed up.  If you end up in at one of these meetings, start asking questions about the books.  You want to see them.  You want to see tax returns.  You want to see audits from CPA firms.  Offer to sign a non-disclosure agreement.  These are all very normal things in the business world.  Say you had a factory that makes widgets and you decide to sell the factory for $100,000.  I'm an interested buyer.  I would ask to see your books, returns and a statement from your CPA verifying these things.  A non-disclosure agreement is common and totally fair.  That way, I could verify the financials.  If someone wants you to sign up for a MLM, ask to see the books.  You'll shut it down almost immediately.  If they get upset, use the phrase ""due diligence"" and say that it is standard business procedure.  Because it is." "They're not at all the same. A Ponzi scheme is a fraudulent investment method that pays off early investors with deposits from later ones. Fractional reserve banking is the practice of keeping only a fraction of a bank's demand deposits on reserve, while lending out the rest.  The reserve requirement is how central banks limit the amount of money that can float around in commercial banks. In the latter case, there is no ""later investor"" somewhere down near the bottom of a money food chain.  Every dollar, regardless of whether it was created fresh from one of the federal reserve banks or created via several chained loans, is worth the same.  If the dollars depreciate for whatever reason, they do so for everyone. Now, if you want a good example of a Ponzi scheme that is actually legal, look at Social Security. Edit: A ""debt-based society"" is separate from fractional-reserve banking.  If the Fed creates $1,000,000, the total amount of money that can float around is still capped based on whatever the reserve requirement is.  (For a 10% reserve requirement, it's something like $10,000,000.)  We have unsustainable debt increases because of lack of self-control on the part of our leaders.  The fractional-reserve process helps it along, but it's not the culprit.  It's an enabler." If you see something that looks like a sales pitch, be skeptical, even if they sound informed, say things which resonate with your concerns and promise to alleviate your problems. Watch out in particular for people who pontificate about matters which are tangentially related to the investment (e.g. populist anti-Wall-Street sentiment). Beware limited-time opportunities, offers, and discounts. I'm specifically talking about your email pitches, Motley Fool. They're shameful. Remember you're allowed to change your mind and go back on something that you've said a few minutes ago. If anyone tries to trick you into agreeing to go along with them by taking what something you've said and manipulating it, or uses logic to demonstrate that you must buy something based on things you've said, tell them you're not comfortable, head for the door and don't look back. Don't be afraid of embarrassment or anything like that. (You can investigate whether your position is in fact logically consistent later.) Run away from anyone who resents or deprecates the notion of a second opinion. Don't ever go along with anything that seems shady: it may be shadier than you know. Some people thought Bernie Maddoff was doing some front-running on the side; turns out it was a Ponzi scheme. (Likewise the Ponzi scheme that devastated Albania's economy was widely suspected of being dirty, but people suspected more of a black-market angle.) Beware of anyone who is promising stability and protection. Insurance companies can sell you products (especially annuities) which can deliver it, but they're very expensive for what you get. Don't buy it unless you seriously need it. Guaranteed 8.2% annual return sounds too good to be true. Am I   right? Are there likely high fees, etc.? You're right. Guaranteed annual return is impossible, especially when you're talking about investments for such a long period of time. Ponzi (and Madoff) schemed their investors using promises of guaranteed return (see this note in Wikipedia: In some cases returns were allegedly determined before the account was even opened.[72]). Her financial advisor doesn't charge by the hour--he takes a   commission. So there's obviously some incentive to sell her things,   even if she may not need them. Definitely not a good sign, if the advisor gets a commission from the sale then he's obviously not an advisor but a sales person. The problem with this kind of investment is that it is very complex, and it is very hard to track. The commission to the broker makes it hard to evaluate returns (you pay 10% upfront, and it takes awhile to just get that money back, before even getting any profits), and since you're only able to withdraw in 20 years or so - there's no real way to know if something wrong, until you get there and discover that oops- no money! Also, many annuity funds (if not all) limit withdrawals to a long period, i.e.: you cannot touch money for like 10 years from investment (regardless of the tax issues, the tax deferred investment can be rolled over to another tax deferred account, but in this case - you can't). I suggest you getting your own financial advisor (that will work for you) to look over the details, and talk to your mother if it is really a scam. If the company is non-public, your hands are tied. Most startups have a Stock Option Plan with specific rules on the shares. In almost all cases, they have a Transferability clause preventing transfers of options and shares unless approved by the company (who would almost always say no). Additionally, they usually have a Right of First Refusal (ROFR), which states that if shares are going to be transferred, the company gets the chance to buy it first. In your case, the company may argue your friend would sell you the shares for free and the company would exercise their ROFR and buy back the shares for free. There is not much you can do in this case. You may be able to write up a contract between your friend and you, but it would be costly and possibly not worth the effort. You may be better off asking for a lump sum or some other sort of compensation. Additionally, your friend might want to be careful with this idea. You could potentially gain access to sensitive company tools/documents which could get them in a lot of trouble. "Weird. He can call it a fraud, yet he cannot point to the fraudsters implied by his statement, unless he believes his own daughter committed fraud by buying, and I imagine at some point selling some bitcoin.  This doesn't feel like a complete thought overall. He likes ""blockchain"" as a technology, he sees the value of bitcoin to escape oppressive regional monetary policies, but he somehow stops of accepting where that train of thought would naturally take him, perhaps because the conclusion is completely alien to everything he knows." If you see something that looks like a sales pitch, be skeptical, even if they sound informed, say things which resonate with your concerns and promise to alleviate your problems. Watch out in particular for people who pontificate about matters which are tangentially related to the investment (e.g. populist anti-Wall-Street sentiment). Beware limited-time opportunities, offers, and discounts. I'm specifically talking about your email pitches, Motley Fool. They're shameful. Remember you're allowed to change your mind and go back on something that you've said a few minutes ago. If anyone tries to trick you into agreeing to go along with them by taking what something you've said and manipulating it, or uses logic to demonstrate that you must buy something based on things you've said, tell them you're not comfortable, head for the door and don't look back. Don't be afraid of embarrassment or anything like that. (You can investigate whether your position is in fact logically consistent later.) Run away from anyone who resents or deprecates the notion of a second opinion. Don't ever go along with anything that seems shady: it may be shadier than you know. Some people thought Bernie Maddoff was doing some front-running on the side; turns out it was a Ponzi scheme. (Likewise the Ponzi scheme that devastated Albania's economy was widely suspected of being dirty, but people suspected more of a black-market angle.) Beware of anyone who is promising stability and protection. Insurance companies can sell you products (especially annuities) which can deliver it, but they're very expensive for what you get. Don't buy it unless you seriously need it.