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| Why do HYIPs compound daily? |
The answer is "habit loop"... The HYIPs are there to feed you false information to get you to form a habit... "trust us"
Habit loop has three steps
- Cue -- the trigger to start the routine
- Routine -- the behavior
- Reward -- the reward for performing the routine
A cue triggers the habit, much like the bell causes Pavlov's test dogs to start salivating.
The actual routine is the behavior triggered by the cue. A physical routine is sometimes called "muscle memory", but a routine can also be emotional or just mental, or combinations.
The reward is the endorphin rush you get when you've completed the routine, can be physical rewards (like chocolate) as well. A reward can be a simple "whew, glad I survived that" to a little smile when you realized you parallel parked perfectly or anywhere in between.
The way the brain works is as soon as it spots a cue, the brain automatically executes the routine, without further processing. Think of it as "macros" that is run automatically. The brain doesn't need to calculate every move as long as it saw the cue. And the reward for finishing the routine is what cements the routine into place, and turn it into a habit.
So what does all this have to do with HYIP, i.e. micro-ponzis?
The HYIP operators are out there to make it your habit. You are prompted and was rewarded for doing so. And to accelerate your habit formation, the ponzis compound daily. Once it became a part of your habit, it makes you resistant to any suggestion that you're involved in a fraud.
