My Sympathy For Those That Lost Money
Let start this article by expressing my sympathy to individuals that put money on to the platform recently and had the unfortunate timing of the platform closing its lending services. I know BitConnect released the capital back to customers in the form of their token, and as a result of there being 1.5 million users connected to the site, the BCC token dropped in valuation by nearly 90%. Thus, the capital released back to users on the platform was also worth about 90% less.
Obviously, BitConnect came out and apologized for their releasing of all of the coins at one time and tried to make amends by reopening the exchange and giving some incentive for individuals to hold their coins by giving them a purpose. However, the value of the coin has not really bloomed much and many users are still holding coins of a lot less value.
So, I want to extend my condolences to individuals that feel wronged by the platform and are currently down a lot of money.
Why It Is NOT A Ponzi Scheme
That being said, BitConnect was not a ponzi scam/scheme and I do not blame content creators for the loss of income of those that invested. Individuals like 
Cryptocurrency as a whole is a risk. We recently experienced a major market correction that may have been started on FUD articles about the China mining ban, the Korean market taxation and closings, and even US regulations. There were very solid coins that also saw staggering valuation losses in the 60-80% range. The entire market lost over 50% valuation in marketcap. Cryptocurrency is extremely volatile and many factors can cause a great deal of harm or upswing.
I bring up that point to express my feelings that any investment in crypto is a large risk. Yes, lending platforms like BitConnect pose a larger risk than simply holding Bitcoin, but I have friends that did not heed advice on when to buy Bitcoin and have lost a significant amount of money on what is considered the "staple" of our little world in this space. Our assumption as investors is that Bitcoin will recover and reach newer highs, but that is simply hope and speculation. There are zero guarantees that Bitcoin will again see $19,000USD. Thus, the risk of investment.
BitConnect created, in my opinion, one of the best business models for this space that I have seen. The reason why I do not consider it a ponzi scheme is because they were able to create a way to make enormous amounts of money on both ends of their business model. I will admit that their referral program tends to resemble a pyramid scheme based on payout structure, but so do many other referral programs. The affiliate marketers will find ways to produce an income from investors when a program like that is offered, however, that does not discount the entire BitConnect system.
The platform was around for a minimum of one year (I think I remember reading or hearing that it may have been 16 months). In that time, the BCC token went from pennies to nearly $500 at some point and Bitcoin went from around $1000 or less to nearly $19,000 at some point in December. So, even without a volatility bot the company would have made tremendous amounts of money based solely on those two coins. The caveat being that they pay out in USD and NOT the Bitcoin used to buy into the platform. The number that is associated with the wealth created by this platform and business model is and should be staggering. We are talking about BILLIONS of dollars.
Now, did they have a trading bot? Maybe? I do not see it as inconceivable for them to have a volatility bot. Hell, I know 4 or 5 people that have coded bots and use them for trading and they produce really good returns. I am not sure why they would not reveal the bot or give proof, but I also do not see it as out of the realms of possibility.
The only reason I feel like BitConnect would eventually close if it did not have a volatility bot is if the model became unsustainable due to reinvestments with compound interest. Over the course of time the amount of money being generated daily would exceed the amount of profit from the coin simply rising. The platform would not be able to sustain 100,000 users making $100,000 a day without any reinvestments. It is just not feasible.
In Closing
Anyways, I just wanted to give my two cents. I do think there is some accountability that should take place on both sides of the coin. Content creators do have a responsibility to not lead individuals wrongfully, but at the same time individuals should still be accountable for their own actions and investments. This is true for real-estate, stocks, crypto, and any other form of investing. Do not overextend or risk what you cannot afford to lose. Especially, in a ridiculously volatile market like crypto.
The closing of BitConnect is attributed to a lot of factors that are probably not linked to the ones given on their web page, but it is not the fault of the aforementioned Youtubers. They are not to blame for your loss of money.
My advice moving forward is to research into your investments thoroughly, assess your risk tolerance, continue to diversify your portfolio and limit your percentages in high risk platforms, and keep your emotions in check. If you are worried about the amount of money you have in a singular investment, then you have overextended yourself and need to adjust the amount at risk. Also, take ownership for your own actions and do not blame others for a choice you have made. Yes, losing money is one of the worst things that can happen in a world that is built on that very concept, but think of all the opportunities cryptocurrency brings with blockchain technology and financial freedom from centralized banks and government institutions.
Okay, end rant.
