What is Bitconnect Lending?

A lending platform made by the company Bitconnect. How does it work? You buy BCC, a coin that they have created, and use your balance to invest in the platform. They will convert your BCC back to USD, and you will now be part of their lending program. The capital you invest will be locked for 120 – 299 days, depending on the amount. What do you get from it? Around 0.90% profit per day on your active investment. This interest can be withdrawn or re-invested into the system (which works well with compound interest). How is the interest calculated? It depends on the volatility of BTC. The more the BTC price fluctuates in a day, the more they can make a profit from trading with your money, and the interest will be high. There could be some days where you make 2% interest, and some days where you make as low as 0.05% interest – it could be anything. However, the average per month is around 0.90% daily interest, as mentioned before.

Is it still worth a try?

Ponzi or not, Bitconnect is paying right now and the profit or loss of an investment on their platform depends on the life of the company. When will it cease to exist? They could disappear in 1 month or in 3 years, we don’t know. However, like any investment, an investment in Bitconnect is a risk. The risk changes depending on the investment, but you can never be sure at 100% that an investment will be profitable. Therefore, we could consider Bitconnect lending as an investment option, even if it could be a scam. We just can’t be stupid and invest in something we are sure not to get our money back, right? So let’s see if it would indeed be a good investment.

It takes 79 – 120 days to get your investment back (in your pocket) with interest, if you invest in Bitconnect. As a result, if Bitconnect is able to stay alive for the next 4 months, you’ll be able to reduce your risk to 0 and start making a profit every day, without losing money if Bitconnect disappears. Let’s see what is the probability of that happening. Here are some arguments used in favor of Bitconnect’s system :

Paying an average of 0.90% a day in the cryptocurrency world is highly achievable. Bitconnect can profit by holding/trading your money easily, even without a bot. Some people, in fact, believe that a trading bot could exist. “High-frequency arbitrage margin trading occurs in many other industries. The technology exists and with the appropriate team of programmers, traders and other key SMEs achieving even an average of 3% a day in this market doesn't seem like a stretch.”
Bitconnect generates value off not only the price of its coin but also off the exchange fees as people buy and sell the coin. Around 22 million dollars in Bitcoin are traded every day on Bitconnect.
The interest is determined by the Bitcoin price. As long as the price of BTC increases or changes, they will be able to pay. “For example if the price yesterday rose by 5% and they paid 1%. They are still left with 4%. If the price falls by 2% they may decide to pay 0.5% and still be left with 3.5%. If the price rose again to 5%, they can comfortably pay you 1.2% and on and on it goes.”
They pay you back using USD and not BCC. If the value of BCC continues to go up due to supply & demand, Bitconnect keeps all the profit. You will be paid in USD.
Referrals are a way for Bitconnect to accelerate the growth of its company. Besides paying a ton of money on traditional marketing techniques, they use referrals. They can modify the levels at any time. They’ve already changed the 7 levels to 3 levels of referrals.
Bitconnect goes to some cryptocurrency events, which shows they are not hiding from the public completely.
The lending platform has been here for a year now and there were no cases of fraud.
With all of this in mind, we could say that it’s highly possible that Bitconnect stays alive for another 4 months. It might not be a model that guarantees a life of a couple of years, but it is genius enough for us to take advantage of it for a while. The risk to not get all of your money back is still there, but it is definitely a risk to take if your goal is to make money passively.

Too good to be true?

You probably heard a lot of things about Bitconnect. Indeed, the platform is the subject of a big debate and most of the active people in the cryptocurrency world now know about it. How big? Well, a lot of people thought that it was a scam. However, the company has been alive for a year now, paying its customers, and a good percentage of the cryptocurrency community changed their mind on Bitconnect or are now unsure of its future. In fact, in a year, not only the platform managed to attract more than 50 000 users, but it managed to bring BCC in the top 15 cryptocurrencies on CryptoMarketCap, with a general capitalization of over 1.2 billion. There were also no fraud cases with Bitconnect detected as of now – which could convince people that the company is legit. However, not so fast, the debate is there for a reason.

There are a number of “red flags” that lead the thoughts of it being a financial pyramid scheme. 1. Bitconnect might be paying their current investors with the money they get from the new members and the constant growth of their BCC coin. In fact, the use of a trading bot was never proven and the referral system (highly profitable for the user), as well as the 0.90% daily interest, are excessively expensive for the average business. The model could be unsustainable, which makes people, like Ethereum’s founder, yell “Ponzi”. 2. The information given by the company is very limited. No information about the cryptocurrency creators, and no white paper 3. The market isn’t setting the price of BCC, since it is directly influenced by the platform. In order to use the lending platform, you need to first trade your BTC for BCC on their website. Then, to withdraw your investment, you need to trade back your BCC into BTC. This creates demand for the coin, and the value goes up.

What is the best method when you invest in Bitconnect?

Of course, you could cash out your interest every day. However, this isn’t the most profitable method. The good thing about a lending platform like Bitconnect is that you can use the concept of compound interest. Compound interest is the result of reinvesting interest, so that interest on the next day is then earned on the principal sum plus previously-accumulated interest. By doing this, your profit accumulates faster, and you are able to take full advantage of Bitconnect and its platform. For example, applying compound interest with an investment of $100 will give you $2960 at the end of the year, while $1000 will give you $23 610; which are very nice returns. However, at one point, you will have to collect your interest to reduce your risk. The most efficient way is to apply the 60/60 rule. This rule indicates that you should re-invest your interest for the first 60 days, and then collect your interest for 60 days after that. At the end of the 120 days, you should have your invested amount back, and a nice amount left in Bitconnect (1.5x – 2x the initial investment), to continue getting interest. Your capital might be locked for up to 299 days, but it doesn’t matter at this point since you already got your capital back with interest.

Are you investing yourself?

Indeed, I chose to consider Bitconnect as one of my investment strategies. I know there is a risk of it being a scam, but I do believe that there is still time to make a significative profit, since it could easily live more than 4 months. Their intention might have been to scam at first, but the goal could have changed with all the popularity, users, genius ideas for them to make money in the long run, …. If that’s the case, then I will be there to profit with them. I understand that I could lose everything, that is part of the game. You should always invest only what you can afford to lose.

I started on December 1th of 2017, and will update this as I go. If you are interested in joining Bitconnect, feel free to join my team following this link (https://bitconnect.co/?ref=divyang101) or by putting your sponsor as divyang101. Let’s make profit together!

I would also love to see your progress with Bitconnect, so definitely share your experience on this thread if you have some. Feel free to also post your opinion on this point of view.

Hopefully I helped a bit, Cheers!