I've been using BitConnect for a few weeks now and had come to the conclusion it's a scam, however the longer it continues to pay out the more I'm starting to question my judgement. On July 21st I made a loan of $1100 and to date I have received back $242.88 in interest, almost 25% of my initial investment already. There are a lot of things about this platform which seem too good to be true and it probably is. The average payout of about 1% per day plus a bonus of 0.1% per day for an investment of over $1000 for a start.
Reasons It Could Be A Scam
BitConnect claims that it makes the interest that it pays out from a 'trading bot' which earns crypto based on the volatility of the crypto market. However there is no evidence that this bot actually exists. On top of this it has never made a loss! If the bot is real it must be one of the greatest financial instruments ever created, since it seems to be able to generate free money everyday. It seems to me to be more plausible that BCC is intact a ponzi scheme that is able to keep paying out purely because more people are coming in and trading their BTC for BCC. If/when demand for BCC ever starts to diminish in relation to the amount of people who want to cash out of BCC back in to BTC we could see the price plunge and the possible scam come to an end.
BitConnect isn't traded on any proper exchanges other than it's own. This is a pretty obvious red flag. Why wouldn't exchanges like Bittrex and Poloniex add BCC if it was legit?
The very generous referrals program makes it seem like the creators of BitConnect are hell bent on getting more and more new users onto their platform. This could be seen as a clear sign that it's a ponzi scheme though doesn't automatically mean it is. There are a lot of people plugging BitConnect hard on YouTube and other platforms and making thousands of dollars as a result.
Poor use of English on the website - If BitConnect was legit why wouldn't they hire somebody to edit their writing so that they come across more professionally. Again this doesn't automatically make it a scam but could be seen as a red flag.
Reasons It Might NOT Be A Scam
It actually pays out!.. for now at least. Having used BitConnect for a couple of weeks I have to say that the website works reliably and that it is very easy to withdraw the earnings every single day. In fact it is very nice to have a 'free' bit of BTC everyday to keep or invest in other promising coins such as STEEM, EOS, ETH or NEO. It's easy to reinvest earnings back into BitConnect but I'm not even going to consider that until I've recouped my initial capital, which should take around 90-100 days in total.
They paid out everyones BitCoin Cash. I was surprised at this as even many exchanges seen as totally legit declined to do so. If it was a scam I would have expected them to just keep it and remain silent but they didn't and deserve some credit for doing so.
They host some events where you can meet the team, if it was a scam you would certainly expect them to hide away and never make public appearances.
Conclusion
I still believe BitConnect is a scam and I think that at some point in the future it will go to zero and the website will disappear. However I might be wrong, as long as nothing goes wrong within the first 90-100 days of my loan I will have recouped the same amount I put in and i'll be satisfied with that, anything else is a bonus. I keep withdrawing every few days and avoid keeping much stored in their website just incase it suddenly vanishes. If nothing else I find BitConnect interesting and made sure I only invested what I could afford to lose, it's just kind of like an entertaining experiment to me to see what happens. If like me you also fancy trying out BitConnect please do so via my link to help me reach the safety of recouping my initial investment even faster https://bitconnect.co/?ref=captaincanary
What are your thoughts on BitConnect, Scam or legit? and also did I miss any important points? All opinions and feedback are more than welcome.
Cheers,
