In an HYIP the owner at some point snatches all the active funds and makes a fortune while all others get burned. Easy as that. Right? Well not exactly ...
To understand why most of the profit does not go to the person(s) behind an HYIP, we have to visualizse the system. HYIPs are often also referred to as "Pyramid Schemes" - for a good reason.
We assume you've already understood the concept of
at this time. *With each doubling cycle a new layer of stones is added to the bottom of the pyramid and interest for all layers above are paid with the incoming fresh money. So how many "stones" (aka investors) are in the bottom layer?