Bitconnect is an interesting concept - it is a platform where people can invest their cryptocurrencies and earn interest on investment. There is nothing wrong with this idea, it could work on paper. However, if you take a closer look at what is really happening in this particular case, you can see that there are big red flags everywhere.
First red flag - Ridiculous interest rate
Bitconnect "reliable" interest rate is about 3-5% per week. Think about it for one second, Bitconnect can get you in one week what the most prestigious investment fund struggle to do in a year. Keep in mind that if something is too good to be true, it usually is. Here is what BitConnect promises you:
Second red flag - We do not know how it works
What is the technique used by BitConnect to get those ridiculous interest rates? Well, they say they are using bot trading. Fair enough, bot trading is far from a revolutionnary technique and it is often used in finance. However, bot trading has never been close to 5% of interest rate a year.
Furthermore, it is really worrying that Bitconnect won't reveal any algorithmic code about their bot. Even worse - there is no evidence of bot trading, it is impossible to know where your money is going...
Third red flag - There is no Bitconnect team
Only a handful people have the skills to create profitable trading bots. It is reasonnable to ask yourself who is behind the scenes creating BitConnect's incredible bots. The answer is simple: we do not know. This means that the founder of BitConnect could cash out at any moment all the investment and run away without any legal repercussions.
How I think it really works
There is no proof that BitConnect is a scam, but there is also no proof that their trading bots even exist. This is why I think BitConnect is probably a "Ponzi Scheme" - it consists of paying the old investors with the funds given by new investors. As long as they attract more and more new investors, they will be able to pay the interest rates of the old investors. But as soon as no new investors join the party, the whole system breaks down...
If abovementioned schedule is accurate than it is good to be true imo. I would not trust anything like this. Thanks for posting.
The abovementioned schedule is what they promise on this page. We do not know if they are being too optimistic or if they are willingly lying.
Don't count me on this and I'm not 100% sure if I'm correct, but I am apart of multiple AutoTrading companies. One being TradeCoinClub ( which I've seen the bot trading ) and I have 10x more invested in that then Bitconnect and I could still earn more in bitconnect. The reason why bitconnect can pay so high is that they exchange BTC for Bitconnect coin.. the coin used to be worthless and they've been getting bitcoin from people for the coIn. So over time as it's gotten bigger the coin is now worth 120$ USD. So they've been getting bitcoin for these coins they've been circulating in. So there alone with the money they're making from the exchange they could easily pay the interest.. who knows if they actually have the trading bot or not. I absolutely agree that one day they could just run away with it all.
Everything is backed by bitcoin. so yeah your trading bitcoin for bcc but if you go to ANY trading platform for crypto they make u deposit bitcoin and then buy whatever u want essentially trading bitcoin for crap coins.
also heres something to think about. what makes bitcoin so valuble? the answer is simple its supply and demand. ppl are still willing to buy bitcoin for over4k.. bitconnect coin is now around 120 ea with a market cap of almost 1 billion. This coin is going up plain and simple.
Really interesting, good points. I also heard something like this about Bitconnect recently. Good post! I will look deep into this.
What do I think of Western civilization? I think it would be a very good idea.
- Mahatma Gandhi
Its a great program. Ponzis usually want u to deposit and nothing ever comes back except your interest. stay clear of those types. Bitconnect gives you back your deposit and pays you compound interest daily. wheres the ponzi?. the avg % right now for under a 1k loan is around .06
why not put 100$ into bitconnect so you can try it out this will answer lots of questions. The key here is the compound interest.