Bitconnect, Important points
There are many arguments for and against Bitconnect, for instance some attribute the Recent downfall of the Bitconnect Cryptocurrency has further indicators that the firm was what is known as a Ponzi scheme, a position taken in which the firm in question takes money from investors, then pays it back with money from further investors and does this by enticing prospective entrepreneurs via "too good to be true" promises.
For instance the first argument that had investors concerned about the legitimacy of Bitconnect was its questionable promised ROI. Standing at an average of 1% per day it was expected to far outperform the likes of the S&P 500 and the Dow Jones, and while Bitcoin has of course beaten this average, the kicker is it was meant to be "Risk-Free", a statement that ultimately bolted the nail in the coffin as to offer risk-free returns is in itself a deception, for the fact that the returns only average 1% and not ALWAYS 1% per day meant that already the statement was being purported.
Extended arguments included the necessity of depositing Bitcoin to invest, causing further suspicion, but in this piece I would like to have a look at the other side, what arguments have been put forward to support Bitconnect.
There is only one argument so far that brings it home.
As Carlos Martos, Chief Financial Officer at Bitconnect argues at the 2016 Bit-connect Conference:
"The world is not the way it used to be, no no no,BITCONNNNNNNNNNNNNNNEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEET."
A compelling statement by the CFO, at the end of the day I cannot speak for everyone and while the world is changing rapidly it is important to make sure that the responses to these changes are appropriate, so yes, I would question whether Bitconnect is the correct reaction to such changes. I agree with the statement that the world is not the way it used to be, but that in itself is not enough in my analysis to justify significant investment. I would recommend ensuring that further attempts at compliance to current laws is pushed, assuming of course they are legitimate as you know the answer if they are truly just a Ponzi.
When you are doing your research it is always necessary to diversify your portfolio and ensure that all perspectives are accounted for. Only then can you go about building your assets. And for further ventures similar to BC you must do the same, there is no such thing as Risk-Free in the cryptoworld
Daymond Goulder-Horobin
NB: There may be Sarcasm in this article.
References
Bitconnect guy - Why Bitconnect is the future