This is like banks that holds your money in saving and give you 0.1% interest while they loan your money out at 7-12% interest, over and over, up to 12 times, essentially making 100% interest or more on your money.

And people fall for the scam in mass.

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Except with banks, the interest they pay you comes from an ever increasing supply of fiat. Bitcoin has a fixed supply. The interest payments would have to come from someone else who already has Bitcoin but chose to give it up.