Bit-connect has been in the news a lot lately. This is my take:
It is not a scam on the way up, but it will be if it ever crashes. And most likely it will crash. I give it 3 more months. No way they can offer a daily interest rate of near 1%. There is just no way that kind of return is sustainable over the long term. Too tired to do the math, but easily findable on Steemit. 1% compounded daily, will create multi-billionaires. Either they are a ponzi, or something much darker and more evil. I'm out on both fronts. Once my own capital is back (almost there) I'll check out. Something is not quite right about this bit-connect.
The biggest question that Bit-connect should answer to prove its legitimacy is that of the autobot which garners that phenomenal interest rate. How in the world does that autobot actually make money? There is hardly any explanation about how the autobot achieves its miraculous returns. You'd think something so fantastic would have a dedicated page on how it is accomplished, but the official bit-connect explanation is almost laughable. This is the best I could find on the website.
"The chart above represents interest rate changes on our platform, tracking the volatility of BTC vs USD and the volatility of USD against major world currencies. The Bitcoin Price Volatility Software calculates interest in real-time for you, so you can monitor profit at any time. Increased volatility means there is greater uncertainty on the returns of your investment."
That's not an explanation. Not even close. So, we're all just supposed to believe in this Bot? Sounds sketchy, or even sinister. I hope this isn't some twisted experiment with artificial intelligence. Game over.
If I were you (the reader) I would personally stay away from bitconnect and get involved with some other crypto.
My favorites right now are Bitcoin and Litecoin.
If Bitconnect is a scam it is a very lucrative one for the people putting it on. Why would they want to shut it down?
Further, the returns are not guaranteed for the majority of the loans. I imagine 90%+ of the loans made are $1000 or less. For those at $1010 and above, the interest structure is no different that a CD at a regular bank.
I predict the rate of return will diminish significantly until it is no longer attractive.
What types of banks make that high of yield? I have never seen a bank go over 3% APY in current market conditions.
I didn’t mean the yield was similar to an established bank - I just meant the structure of the product.
The interest structure of a CD is yearly not daily like bitconnect. Bitconnect's yearly interest rate compounded daily is astronomical. And the owners of Bitconnect will shut it down once they realize the game is up and people start pulling out instead of putting in. This game will naturally go to zero, or the owners could cash out early while still driving the coin to zero. Perhaps bitconnect the crypto isn't technically the scam, but bitconnect the lending program is. The owners will still have plenty of bitconnect tokens to sell in a flash thus making millions and driving the coin dramatically down. The first adopters will earn plenty of money, the owners will make plenty, and the ones holding the bitconnect token or still have cash in their lending wallet will lose their shirts. This is a zero sum game. The bitconnect crypto will simply transfer money from some people to give it to other people. The writing is on the wall. If people want to experiment, go right ahead, but be prepared to lose it all. This is nothing more than a grand poker game.
I'm actually quite curious about Bitconnect as well. Nobody has been able to actually prove that the bot doesn't exist. Alot of the skepticism about Bitconnect is exactly what it is - skepticism. Something else weird is that the price of BCC has shown significant growth the past month. Compared to other coins/tokens it's growth is very "stable", speaking in crypto terms.
thanks 😍😍😍😍😍😍
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I called it almost to the exact date. I was three days off. Bitconnect has closed its doors and is now officially a scam. 01/16/2018. Many have been hurt by this practice. I think it is important to blame the creator of bit-connect and not the promoters. Greed got the best of them. This just promotes the old adage: If it's too good to be true, it probably is.