Bitpetite: does it work?

While browsing reddit at work, I came across this crypto-coin mixing service called bitpetite. They promise to provide a pretty big return on your investment if you participate in their service.

I will break down this article into 4 segments:

1. How their service works
2. My investment calculations
3. Observations
4. Does it work / My experience so far

Their Service:

You have 10 friends and each one of them tosses 1 green unmarked tennis ball into a black bag. It just so happens that your tennis ball has a tiny hole in it and doesn’t bounce well; you toss this into the bag. You give the bag a good shake and then one of your friends reaches into the bag and plucks a ball out. He tries to bounce the tennis ball but it turns out it doesn’t bounce. He has no clue who put in a shitty ball but you do. Congratulations, you’ve officially mixed your balls and screwed your friend over.

Crypto-tumblers pretty much do this and this is what bitpetite is asking us to help them do. You send them some cryptocurrency, they mix it with all the other people sending cryptocurrencies and hopefully at the end of it you don’t get screwed.

Why would I help them

They promise two types of annuity contracts: a 6 week or a 9 week term. At the end of both terms, you are richer. The 6 week term promises a 147% return while the 9 week term promises a 180% return.

ex. If you invest 100 ether with the 6 week term your total return will be 100*1.47 = 147 eth (profit of 47 eth)

6 week term:

Fig 1. 6 week plan informaton

9 week term:

Fig 2. 9 week plan information

The current interest rate changes depending on if it is a weekend or weekday. The current interest rate reported on the website is for weekdays, however, on the weekends you are given a 1% interest rate for both.

Analyzing the contracts

What is the actual rate they are paying? They promise to pay you a fixed payment relative to your investment hourly; otherwise known as annuity payments. Knowing this, I put the numbers into excel to figure out which contract had a higher rate. Unsurprising to me, the 9 week contract ended up with an annuity rate of 2.072% which is 0.1267% higher than the 6 week.

Fig 3. Calculating rate of annuity

To further verify this, I theoretically calculated the payments for each day below and noticed that if I run the 6 week plan 3 times and the 9 week plan 2 times so that both are at 18 weeks (126 days), the 9 week plan ultimately has more profit by 18 weeks.

Fig 4. Annuity Structure

and a graph, because I like graphs. Each vertical dip corresponds to the plan ending and reinvesting another 100 to continue

Fig 5. Profit relative to amount of days

Clearly, if you were in it for the long run (will they be around in the long run is also open for debate), the 9 week plan is better after 18 weeks or 126 days.

Observations

There were a couple of important takeaways from my calculations.

1. The 9 week plan pays out at a higher rate
2. The time it takes for me to get my initial investment back is 35 days
3. I will get half of my investment back in 16 days
4. At time of writing, the site has been around for 152 days

Does it work

The signup process at bitpetite was pretty simple, make an account with your email, verify your account, and then choose your crypto currency type:

Ethereum

Bitcoin

Litecoin

Monero

Then select your plan type and deposit your desired investment. Once the deposit is confirmed, then the investment automatically begins. In my experience, this typically took 1–5 minutes.

My experience

Anytime I send cryptocurrency across the internet to some mysterious figure promising me a return, I’m always sketched out. Is it real? is it fake? will they just take my ether? I will soon find out.

I deposited some ether and immediately noticed that on the right hand side of the page a timer appeared showing when my next payment will be made:

Fig 6. Hourly payments

Payouts are made hourly from the moment your deposit is confirmed. I am currently 5 days into my 9 week plan and here is everything I’ve noticed about the site:

1. My first withdrawal (eth tx : 0x9a8a6f2c4cf8dc09243b43c74d188338949a39c1118480a9d3a0a7db7f92be9f ) worked.
2. The site was down one morning (Oct 25) for a couple of hours for maintenance.
3. They have a facebook page where they are pretty active on, maintenance information or updates are posted here regularly.
4. They are currently trying to upgrade the servers so I’ve noticed some downtime due to upgrades.
5. My latest withdrawal was stuck for about 2 hours before they fixed it (server issues).

Over the next couple of weeks (until December 30, 2017) I hope to continually add my withdrawal TX numbers to this article to help others. So far, bitpetite has delivered on all their payments and withdrawals; if at anytime this changes, I will make note of it here!

If you want to give it a try, help me out by using my referral code https://bitpetite.com/?aff=prettyflocko or you can keep viewing this article to see what happens! If there are any questions please feel free to ask them!

First withdrawal TxHash: 0x9a8a6f2c4cf8dc09243b43c74d188338949a39c1118480a9d3a0a7db7f92be9f

Second withdrawal TxHash:

0x3762aae89b613069769aabf4d6eaf121f43c942b78a86107f09786e49631cbe9