Hello again Steemians!
Sharing thoughts on my Bitconnect experience so far. Hopefully its coherent and useful to anyone that is considering this HIGH RISK, high reward investment
I invested $2300 into Bitconnect on Sept 21. Here is proof:
Lets take a look at Bitconnect:
Trading Bot
- BELIEVABLE: It is not completely out of the realm to think
there could be a trading bot that makes a few% gain daily
and is able to hand out on average 0.9% to lenders.Trading
bots have been used in traditional markets for year. A friend
at JP Morgan told me they rarely have losing days. In
crypto markets, people using gunbot etc have claimed upto
2-3% daily gains.
However the daily profit is not guaranteed by Bitconnect.
The interest rate that you earn daily using our investment
platform is calculated by our BitConnect Price Volatility Software
and accrued daily. Some days, the profit may be 0%.
- NOT: A scenario where BCC makes enough profit to
provide 1%+ daily is unrealistic. There is no data to support
these claims except a "daily volatility chart" published by BCC.
Transparency
- BELIEVABLE: The creator(s) are unknown, but considering
their claims of how great the trading bot is, I wouldn't want
to reveal myself either. My belief in Bitcoin isnt diminished
because Satoshi Nakamoto is unknown
- NOT
- Offices - Some listed addresses either have no trace of
Bitconnect or are empty rooms rented in Co-working Spaces.
However, ther is proof that they have a office in Hanoi, Vietnam.
- Events: We are yet to see anyone from the real Bitconnect
team at events. People there are just promoters who are
paid to act as the reps for BCC. What I truly believe
- Bitconnect is run/created by someone who I believe is very
smart and understand exactly what needs to be done to manipulate
"investors" into the program. How?
- BCC Coin: Integrating a coin into the platform was genius.
Investors buy BTC -> Convert to BCC -> Convert to US$ ->
Lend US$. They have created a cryptocurrency (which
literally has no use at all). Having a crypto makes it sound
more legit than your traditional HYIP program
- Scarcity: Created a scarcity around it - achieved by the
need to convert BTC to BCC (which is then held within the
system) the prices of which have risen from $0.5 to $110+
in less than a year.
- Circuit Breaker: Implemented breakers that would halt
trading if volatility goes beyond limits (I forget what the
range it). This allows BCC to pause the market if its value
goes up too much or (what I believe to be the real reason)
it goes too low.
Referral program
- BELIEVABLE:
The concept of a pyramid scheme is to make money from
the actual pyramid system. However the only thing that
resembles a pyramid is the referral program which you
do not need to participate in whatsoever.
Yes, bitconnect has a referral system. Many, many...other
companies use referral systems. (Google, Uber, Airbnb, Citi Bank, U.S. Bank, AT&T...)
Check this website as example http://moneypantry.com/referral-money/
Conclusion
Bitconnect is not a legit business/program, but that sedd, a lot of blockchain companies arend in the eyes of the conservative business models.
- If they truly have this great bot, there is no longer a need for them to need loans from investors. By now, they've made enough $$ to trade with their own money. Why pay somebody else the 0.9%? How I believe they actually pay out.
1. Basic pyramid mechanism of new members buying in creating $$ to payout the old investors, but here is no proof of!
2. Selling BCC. In Jan, the min $100 loan required the purchase of 200 BCC Coins. These 200 BCC coins, bought with $100 are now worth $20,000. BUT, BCC will pay you $100 as principal return - NOT 200 BCC"
3. Transaction fees, buy and sell on the Bitconnect exchange.
4. When you are starting a loan you are holding BCC for 170/299 days. I dont have to explain what hodl does to the value of coin.
5. Traiding bot, like's Schrödinger's Cat, it may or may not exist.
6. They have fulfilled every single bit of this roadmap and they plan to released a smart card in October : https://bitconnectcoin.co/roadmap
They are #13 out of all crypto currencies with a $896,738,093 marketcap. You don't get that far in the game only with a pyramid skim.
I get paid in $$$ from Bitconnect to re-invest in crytpos. That means, I no longer have to dip into my own fiat account as a result.
For me it is not a scam.., a very good pyramid ponzi maby.., or just a good system...
The funny thing is that everything is a ponzi, from your bank to the crypto sphere etc, it work as long as people join in and give value to a thing, as everything that generate income is pretty much base on a Ponzi.
With that said, anyone that invests into Bitconnect should go in with the mindset of losing their principal amount, like all the crypto investments.
If anyone is interested in knowing more on Bitconnect, feel free to drop questions below or PM me - Pleas don't confuse this with referral requests.
Thank you for the reed!