Would really like to know what all of you think will happen with bitconnect in the coming months.
Will they lower percentage for payout?
Is it a scam?
I keep thinking that as long as bitcoin keeps going up it will continue to be a great investment. So far so good but I am alittle worried about the whole bitconnect thing.
Let me know guys
I introduced Bitconnect to a friend of mine. He has learned stock market trading from an expert and was heavy into it years back. After explaining bitconnect, he said that trading bots are nothing new. The huge investment firms have been doing it for years. He even told me a story about some smart folks in Europe that focused their energy on cracking the algorithm on one of the major trading firms and were successful. The problem with the firm is that the trading wasn't secret enough. Given enough data, one could reverse engineer the algorithm that they used. They also found a flaw in the algorithm that they could exploit. They were able to drain the investment firm and business of millions before they were discovered. Authorities and layers went after this group, but in the end no money would be paid back because they didn't break any laws.
The secrecy is absolutely necessary as you don't want anyone to exploit or copy their algorithm.
My friend also said that 1% daily is a conservative number. I myself have made 5.87% in my first 2 hours of trading after watching some videos on how to trade cryptocurrency. The risk I was taking is that the market could swing down and I could get emotional and hold onto a bad trade. It seems like the 1% is low. It should be around 1.5% -2.0% on average. But considering that the investment that the user lends is fixed against the US dollar, I assume that the trading bot software is designed to limit losses because at the end of each day, they need to keep all the principle in tact.
Keep in mind that Bitconnect takes 11.5% of daily gains. This leaves you with an average of 0.88% if gains on the principle are 1% on average. That leaves you with around 321% annually. Compared to the stock market, that is a great deal. However, it is a bad deal compared to what Bitcoin is doing. The caveat is that you loose your value if the market crashes with Bitcoin. With Bitconnect, at least the principle is still there. I've been using it for over a month now. In that time, I've seen 4 corrections the Bitconnect gains dip but have never gone to 0.
I think that the bonus may stay where it is, but Bitconnect's take from the gains may increase especially if there is a dive in cryptocurrency. That would convince a lot of people not to hold cryptocurrency and it is better to leave trading to the professionals or bots.
I did a bitconnect loan about 1 month ago. It seems to be working great but normally I would be scared of this type of investment. You have some great points of how this works. Thank You!!!
Bitconnect has one problem. They are using the classic methods of splitting the money with their users if they change some major things I guess they will be alright in 2018.
I keep thinking they will lower the percentage of payouts to .5%
I think that they may not be hiding their daily percentages. A reduction in payout percentages will be a reflection of the market health. Instead, I think that they may increase their take from the gains to something higher than 11.5%
If you think about it, the only way new BTC is coming into the system is through new investors coming in daily.
In short, the only way old investors can cash out is when new investors cash in (sounds familliar?)
Yea sounds like a typical ponsi scheme
Indeed, Bitconnect is a very clever Ponzi, probably can sustain itself for a longer timeframe, not the usual 6-12 month...
Congratulations @lesterjessop! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP