(Hello, this is my first post here, Im not English native speaking, but I highly appreciate constructive criticism.)
***Disclaimer, this is not in any way sort or form an article to promote Bitconnect. On the contrary its meant to explain exactly how this scam works. I do not encourage people to join with them. It will get bust one day or another. Its not a question of if its a question if when. If my english makes my article seem to promote them in any sort or way, do please know that I dont and its in that case a language error on my part. I urge you to stay clear of them.
Bitconnect is a classic mlm pyramid scheme. Its ingenious in a way, making it most likely possible to keep going for a long while as long as the new clients come running in to the fold.
They dont have to actually ”steal” your money, and no need to skim it either since they are allready doing it openly with thiere transaction fees.
They hold bitconnect coins mostly and the value of the bitconnect coin is boosted through the community.
When you do your conversions and put the dollars in the lending account however, do not for a second believe its real dollars or that theres a trading bot in the background. The real ”dollars” is in the bitcoins you just traded in. But the trading is peer to peer, so theres no risktaking by the company at all and they give you back thiere own inflated coin to your own deflated dollar. While the exchange from bitconnect to bitcoin follows a shadowez curve to keep thoose dollars at an somewhat even pace so the illusion stays alive for as long as possible.
But when the new young blood stops pooring in, or the old investors stops reinvesting and putting more bitcoins in the system. Thats when it will collapse. When noone can any longer change thiere bitconnect coins for the bitcoin it no longer holds any value. Thats why they opened up for the currency to be traded on the Hitbtc exchange (i have no idea atm of thiere reputation, first impression wasnt good) so they can keep thiere coins value up longer and give people in the system a way to trade thiere coin.
All follows a verry skilled planned and executed scheme to make it last longer.
But the dollars you see are printed, its not so hard to code a site to seem to generate a dollar value for you. Its all digitall and i recognize the mlm structure inside from a late 2k mlm site with pretty much the same structure that collapsed when people couldnt turn in thiere token for cash anymore because there where no buyers for thiere then useless tokens.