Bitcoin interest is relatively new and has launched what they are referring to as the only way that you will want to store your crypto ever again. Bitcoin interest is saying that you simply have to buy Bitcoin interest coins--- lock them up in your wallet and receive roughly 0.9%-1.6% ROI per month. To me this whole Bitcoin interest model is reminding me a lot of Bitconnect with this idea of locking up your coins, and so I thought I’d dive a little deeper in explanation to see if I can really call this a scam.
First off, I’ll give them a little bit of credit for not having a GoDaddy web certification which literally will only cost you about $5.
This is from the website:
“We figured out a new way to generate interest payments to reward our users through what we call "Enhanced Proof of Work" using the Equihash algorithm. Every time a miner solves a block in the Bitcoin Interest network, they are rewarded 12.5 BCI coins while an additional 1 BCI is generated from the block and sent to the "Interest Pool." Once the active Weekly or Monthly interest round has finished, the Interest Pool is distributed evenly to all of the users participating in the current interest round.”
Basically this means that the more coins you hold in your Bitcoin interest wallet the more coins you will earn per month so long as the Bitcoin interest is being mined.
Here’s a link to their available mining pools: https://www.bitcoininterest.io/miningpools.php
From what I can tell the Bitcoin interest team is a lot more transparent than Bitconnect ever was, and on the website they say that you should not send them your coins, but keep them in your wallet because they are your coins. The Bitcoin interest team also has full Linked In profiles for each team member so this is also a good sign.
To me this is a coin that is supposed to appeal to new investors in the crypto space. However, Bitcoin interest does propose an interesting idea where miners are rewarded as usual and stakers are rewarded a bit more than usual. The team believes that if the coins are being held and not sold then that will mean the success of their coin, and for the most part I agree. The only major red flag here for me is that it seems like they could have easily created a desktop wallet for their platform so that we could at least take our coins offline every once and a while as a cold wallet.
Their whole model depends on people actively keeping their coins online in order to generate interest on their coins, so maybe they just don’t plan on creating an offline wallet. It’s hard to believe this coin is a scam with all of their transparency, but I wonder if only having a web wallet where your coins are less secure is a good idea. They also have a very active Twitter account where they are giving specific updates about improvements they are making to the project.
Is this the better alternative to Bitcoin investing or just another creative Ponzi scheme? Let me know what you think in the comments below. Thanks!
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Thanks for the post, the4thmusketeer.
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yes
Hm lets see buddy looks like a ponzi but at least we can try it
have you tried it ?
It does feel like a ponzi, but its hard to say. No I haven't tried it.
HM OK FEELING FOR IT HAHAHHA
This is what scares me about investing. From the website: "With our advanced interest technology you can hold your coins in your own wallet and receive interest payments with absolutely no risk to you. You'll never be required to trust your coin holdings with anyone again!" There is always a risk with any online wallet. Only hardware wallets are nearly unhackable.
hm that's true man cryptocurrency is a gambling play on your own risk someday you win and someday you
lose
is interesting the comparison you make between bitcoin interest and bitconnect, since they are two different projects in the case of bitconnect was a lending program so it was quite risky to leave there your balance in this cryptocurrency.
On the contrary I think that this project has some interesting peculiarities but since it appeared in coinmarketcap in May 2018 its price has done nothing but to fall to consider investing in this cryptocurrency would be advisable to see the roadmap that has the team of developers and see if they have any alliances or improvements in the algorithm that would be fundamental that could improve the value of the currency a point that can give hope to the project is that it has a max supply of 22,300,000 coins of which there is a little more than 18,300,000 in circulation by having a limited and low amount is possible that we can see a rise in the price with some good news.
Greetings friend and thanks for sharing this information
remember that I greet you @cryptowebspanish
Thanks for the comment. I'm not saying that Bitconnect and this project are related, but I do see similarities between the two projects. Bitconnect guaranteed daily profits, Bitcoin interest is only saying that if you stake your coins you will earn more with them than most other projects out there. BTC interest does have potential, and the supply is low too so that will prevent some of the inflation. I think Bitcoin Private is a bit more interesting, but its too early for both of these projects to judge.
Of course I know that they are not related, it must be a mistake in my way of writing I am improving my grammar friend greetings!
Good post!!!
👍👍👍
1% monthly ROI is really good when coin value drops by 20%.
All staking coins end in inflation spiral far greater than the staking reward.
yeah I agree, inflation is a huge problem with POS coins.
I didn't really understand this
I think your bot is confused again, no big deal though.
Yeah she was. It had to do with bitcoin and earning interest since bitcoin has no interest rate mechanism. But hey I do actually read these articles after she comments. It's a nice article. It took me a bit to realize this is a new bitcoin fork. It sounds awesome, think I'll check it out.
There is also bitcore which has an interest model. Have you seen it?
are you think this time bitcoin get ecf approval?
Magic 8 ball always correct or not?
lol, not sure
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Yes..i like it
Hmm... It looks, walks and quacks like a duck if you ask me...
yeah, if you ask me something isn't adding up here.
The ROI is very reasonable for monthly gains. If it is a scam, it was designed very well to fly under the radar and not cater to greed. However, it does take Bitcoin's name instead of trying to make its own, and that speaks for a lack of confidence by its founders. If it gets mass adoption, it can be valuable for awhile, until people get bored and move onto the next thing. I wouldn't drop a dime into it.
It does seem an interesting concept and until reading this post I was unaware of it. One of the things continually pointed out by crypto skeptics is the fact that we will see an end to inflation of value because of a set number of tokens in circulation for things like bitcoin. The kicked around argument I hear a lot of is that due to the set number of coins, potential for hoarding,etc. that we will see a drop off in use thus the store of value cryptos can be will begin to lose value. I don't agree with this of course because of the value that certain block chains hold simply on their performance capabilities as networks and the operating systems that can be put built on them. But a set interest increase with a guaranteed ROI seems a pretty neat concept so this post has certainly given me something to google and have a good old fashioned read on so thank you. Keep Steeming. :)
Invest at your own risk, but it is an interesting idea.
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