I started investing in Bitconnect about 2 months ago, and I have been paid based on their daily interest calculations (https://bitconnect.co/learning-center/bitconnect-bitcoin-price-volatility-software#).
The high paying interest rates make you think that the whole thing must be a BS. However, being in this extremely volatile environment of Bitcoin and cryptocurrencies makes you think twice.
Bitconnect (BCC) leverages on the price volatility of Bitcoin and based on the money you lend to BCC, "Bitconnect Trading Bot" buys/sells Bitcoin, and as a result makes profits on the BTC price differences.
I've done an analysis on the Bitconnect % rate of interest (vertical axis) vs. Bitcoin price changes (horizontal axis) and as you can see in the chart below, the two have a parabolic behavior:
This means, the more Bitcoin gains or loses in price, the more money you make on your investment through Bitconnect. Therefore, in the case of Bitcoin price depreciation, you can think of Bitconnect as a hedging instrument.
The BCC rate of interest seems to correlate to Bitcoin price changes of the prior 2 days. For example, today's rate of interest (July 23nd) depends on the price fluctuations between July 21st and 22nd.
Data Source: (01/01/2017 - 07/22/2017)
https://bitconnect.co/learning-center/bitconnect-bitcoin-price-volatility-software#
https://Blockchian.info
If you found the material useful please upvote.
Also please make sure to check out the same analysis on more data points in here:
https://steemit.com/cryptocurrency/@ka82/bitconnect-investment-part-ii