It doesn't make sense. If it's just a trading bot why aren't other people making more bots and duplicating money. What about trading losses. Why do you need to lock in your money for so long .. all these are question that can't be answered
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I'm not sure whether or not Bitconnect is a scam or not, but making the lender hold their capital in the system does make sense. If everyone could withdraw their funds whenever the system wouldn't work. If everyone pulled their funds when things start to dip there would be a run on the system emptying out the "reserve" and potentially crashing the site. Just one of those safety net things I guess. (for them anyway)