What about this situation would make you assume that the ranked system is screwed?
I'll generally give an explanation of how the ranked system works nowadays in League of Legends.
You get placed into a certain league depending on your performance in your provisional matches. For you, it was bronze 1. After this, when you win games, you gain LP, and when you lose them, you lose LP. Getting to 100 LP enters you into a promotional series, and if you win 2/3 or 3/5, you move up to the next division (or possibly skip a few divisions, more on that next). So your visual progress is seen by your division in bronze, silver, gold, etc.
Behind the scenes, there is a statistic that each player has (one for ranked and one for normals, but there is probably a different one for every game mode) called MMR (match making rating). This invisible number adjusts much more slowly than your LP, but is the driving force behind how much LP you win/ lose in your games. Winning large numbers of games raises your MMR by implying that your skill level is far beyond the people you are currently playing with. As a result, you may find yourself in bronze 1 getting matched against gold players and, if you win, earning very large amounts of LP as the game attempts to have you rise through the ranks to your proper position. If your MMR is high enough at the end of a promotional series, it is possible to skip a division (go from silver 5 right to silver 3) as the game again tries to properly place you.