Raging Bitcoin is a very simple six level deep cash gifting scheme that makes exclusive use of the Bitcoin digital currency (BTC).
What Is RagingBitcoin?
There's no information on the RagingBitcoin website as to who owns or operates the company. This is, of course, typical of cash gifting scheme websites, as this makes it harder for disgruntled affiliates to track down the site owner when such schemes inevitably go belly-up.
However, the person running this particular scheme is not nearly as crafty as he thinks he is. The site registration lists a Robert Reel; the address is for a residential home in Wheatfield, Indiana.
According to both his Facebook and LinkedIn accounts, Reel (who goes as “Robb” Reel on social media) is a self-styled real estate investor who has been involved in other MLM schemes in the past, most notably the now-defunct United Games Marketing.
Reel may actually be located in the Dallas/Fort Worth region in the state of Texas, according to the information he has listed on LinkedIn, with the Indiana address being a secondary one – or possibly false.
There's no product with RagingBitcoin. Affiliates can only market the cash gifting scheme to others in order to earn money.
Raging Bitcoin operates as a classic cash gifting scheme. Joining the program requires a 0.01 BTC payment, which is then split six ways across the affiliate's upline – 25% for a direct sponsor, 20% for the second position up, and 15% to the third to fifth upline positions.
Note that the sixth upline position – which is not mentioned specifically by RagingBitcoin – receives 10% of the take. This position is likely a pre-loaded position owned by Reel himself.
After paying into the system, affiliates can build a downline for themselves. Personally recruited affiliates provide 0.0025 BTC, level 2 affiliates provide 0.002 BTC, and affiliates from level 3 to 5 provide 0.0015 BTC.
Funny enough, the unilevel matrix stops at level 5, even though your upline consists of 6 individuals – again likely due to Reel playing games to manipulate the amount of Bitcoin he can skim off the top.
Raging Bitcoin is set up to benefit one person and one person only – Robert Reel. With this individual firmly ensconced at the top 6th position of every new affiliate, all money flows up to him.
10% of 0.01 BTC might not sound like much, but let's be clear here – with the price of Bitcoin being what it is, 0.01 BTC is anywhere between $20 and $25 as of this writing.
While 10% of that is just $2 to $2.5, over time this continues to add up – this is the fee that Reel receives from each and every new recruit. He's literally skimming 10% off the top from everyone.
Meanwhile, you only make any money if you manage to recruit enough people under you to do so. These people, in turn, need to do the same, as do their recruits, ad infinitum. Such a system always breaks down, and residual payments dry up – leaving 99% of the members of such a system paying into a system without getting anything back.
Except Reel. He's got your 10%, and he's not gonna give it back.