In this post, I want to talk about what might be the biggest Ponzi scheme in human history! It is the biggest in Crypto for sure! Even if you think Bitconnect is legit, I strongly advice you to read this blog post in order to view it from another perspective. If you don't have any prior knowledge about what a Ponzi scheme is or how it works, I suggest to look it up before you continue reading.
Usually I don’t care about investors making dumb decision but I believe if Bitconnect goes down, this will have a major impact on the entire Crypto market! Bitconnect is currently valued at $2.7 billion and therefore one of the 30 biggest coins by market cap. It even has been in the top 10 for some time in 2017. If this Ponzi blows up, main stream media will report about Bitconnect being a scam and losing investors money, and for many without further knowledge on the Crypto market, “Bitconnect" might sound dangerously similar to “Bitcoin" and will definitely leave a bitter taste in peoples mouth about Crypto in general.
Let’s look at what Bitconnect really offers. I want to focus on Bitconnect lending here, their self proclaimed “best choice":
As seen in the chart below, Bitconnect guarantees up to 0.25% DAILY profit when lending them money. This is where everyone should have seen the first major red flag: guaranteed profit! No legit investment ever offers guaranteed profit and definitely not profits of that size!
More red flags are the facts that you are guaranteed bigger profits the more you invest, as well as additional profits for recruiting new investors! To illustrate how unrealistic those daily profits are, we are going to take a look at the actual numbers shortly, but first let me explain what they really guarantee:
If you lend Bitconnect between $10,010 and $100,000, they promise your money back within 120 days, plus on top of that a daily interest of 0.25% AND another variable interest percentage that depends on the profitability of their so called Volatility software.
Looking at another chart, that variable percentage has historically been around one percent on average. With a $50,000 investment and an average daily interest of 1.25% (1% volatility software interest + 0.25% guaranteed interest) that would lead to almost $250,000 in the 120 days until you allegedly get your money back! Lets say you decide to keep using the system for more than 120 days, for 2 years for example… with those same numbers, your $50,000 would turn into $433,853,676 within 730 days! You read that correctly, over $400 million! Those kind of daily returns are not sustainable, no matter what your opinion on Bitconnect is!
So how exactly does their volatility software work? No one knows! They refuse to release any further information about that very engine as well as their asset structure whatsoever. This is more than suspicious!
On top of that, they want to conduct another ICO on January 10th! Why would they need additional money if they have a trading software that yields 1% per day you might ask? Well looks like they are about to run out of money and want to keep the Ponzi running!
For all those that are claiming they made money with this, a Ponzi is designed to work until it doesn't!! As long as new money is flowing in, the Ponzi keeps running! So save your money and don't invest in it! Or get your money out asap if you're in it because it will blow up at one point!
Maybe your a very alert investor and all of this is old news.
I also have new news for you, GOOD NEWS in fact:
The SEC is onto them.
Usually I’m not the biggest fan of regulators (i.e. the SEC) stepping into the Crypto markets but in this case, it is actually a good thing to actually protect investors from their own stupidity!
Don't fall for this Ponzi!
