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  1. #1
    Allura's Avatar
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    Bitconnect - Turn $500 into $500,000?

    Bitconnect is a lending coin. Essentially this means, you:
    1. Send Bitcoin (BTC) to Bitconnect's website
    2. Convert your Bitcoin into Bitconnect coins (BCC)
    3. Create a loan with your BCC which pays you a daily interest (~0.95% daily). Your loan is locked in for 150+ days. Meaning you can pull out your loan amount until the 150+ days are up. You instantly keep the daily interest. Most people reinvest it back into the site so they can get even more daily interest. Otherwise you can simply just cash out that interest completely.

    Concerns and questions

    How are they paying you this 0.95% daily interest? Where are they getting this money from to pay you this INSANE daily interest rate?
    Fact
    Banks pay you about 2-3% interest YEARLY. So how can this pay you 0.95% interest DAILY. Well they have a "volatility trading bot", which takes advantage of Bitcoin's volatility. There is A LOT of volatility in Bitcoin, so this trading bot make senses. However, there is no proof that this bot exists. It also doesn't make sense that there is not a single day where there was negative profits. There is no such thing as perfection, and if there is, why not show some sort of evidence or address this issue? If they did, I'd immediately flock to Bitconnect.

    Possibilities/speculation/opposing view
    The other side to this is that, if we look at Bitconnect's market cap, its sitting at $2 billion, making it ranked 7th in the cryptocurrency space by market cap. That's a huge amount of money. If that volatility bot exists, we can bet most of that $2 billion is that trading bot. That means bitconnect controls a huge chunk of Bitcoin's price. The market cap of Bitcoin is $122 billion, and $2 billion is controlled by bitconnect. That is a huge amount, so their bot could be in fact creating that volatility, hence no negative profits.


    All these YouTubers are making a tonne of money, and they are getting paid, how do you explain this?
    This is completely true. Bitconnect has almost run an entire year and its still going strong and paying out. People on YouTube have made hundreds of thousands of dollars. Now let me ask you a question, go to every person who positively promotes Bitconnect. Look at where they are recording from (usually their bed rooms which aren't that fancy). Look at their video production quality (whilst this isn't an indicator, if you were mega rich, I'd assume you could afford to pay people to edit, or at least get better equipment). Everyone who promotes this coin is essentially in desperate need of money. All their content and title's are focused around "get rich quick" and "use my ref link". These YouTubers are also most likely new to the crypto space and also most likely casual investors.

    However, do you guys realize that a lot of what they earn are also from commissions of referring people. Their profits may not account to how you profit. Bitconnect's model seems like a ponzi scheme. What is a ponzi scheme? Its when the first investors gain profits by taking the second investors investment. Its basically like a pyramid scheme Example:
    1. Bob invests $10 on Monday
    2. Steve invests $13 on Tuesday. Bob gets a $1 interest paid from Steve's $13.
    3. James invests $20 on Wednesday. Bob gets a $1.20 interest from Steve's $13 and James $20. Steve gets $1 interest paid from James's $20.


    What happens if there is no one who invests after James? Then they exit scam because how else can we make money. HOWEVER, here's the clever part of Bitconnect. It allows you to reinvest the interest you gained as ANOTHER loan which is completely separate to your first loan. Therefore, the ponzi scheme, keeps looping and looping. A lot of people reinvest their interest, as that's the "strategy" to "win". This reinvesting can be seen as a nigher at the casino. When you win $100, you don't take the money and run, you keep playing and playing until you go bust. People are greedy and keep wanting more and more. It can also be seen as, you technically never winning, and just having your money looped around in circle. Profits will be made because your coin is being staked (hence circulating supply becomes lower, and if its lower, it means the bitconnect coin's price will be higher).


    How long will Bitconnect last for if its a scam?
    Bitconnect may last for as long as Bitcoin lasts and remains volatile. In saying this, that's still not guaranteed. There is no right answer to this question.


    It's been running for so long, and its still paying great profits, should I invest?
    Well that is up to you completely. If you want to invest, I would say $500-$1010 is a good amount to start off with. $1010 is the sweet spot but still a lot of money. Anything lower than $500 would not really be worth it, but again, up to you. I would also say, if you do invest, consider it as a VERY VERY VERY expensive slot machine spin. When you play the slot machine, you've essentially lost your money already. Consider Bitconnect as an expense and not an investment. Who knows if it will be online in tomorrow. We don't know anything about the dev's behind it, so that's also not reassuring.


    What are your thoughts?
    Last edited by Allura; 11-03-2017 at 10:55 PM.
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  2. The Following 4 Users Say Thank You to Allura For This Useful Post:

    d3m0n1cp4nd4 (11-04-2017),Devil (11-05-2017),Doctorate (11-04-2017),Luverdark (11-04-2017)

  3. #2
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    I think its a Ponzi scheme

    will tell you why
    - Loans are locked in for about 300 days. People can't cash our their initial deposit for a long time. No cash outs = less people selling BTC
    - Multi-level marketing
    - No whitepaper on how the currency actually works
    - Operating in another country but works with USD
    - no face behind the company (makes is easier to run away)
    - no proof that a bot is making these trades.. they are simply giving you someone else's money
    - exchanges that carry BCC are not reputable
    - 1% is not sustainable. Why would they need our money to power the bots if they could make 1% a day.. they could easily take corporate loans if they had some sort of unique bot trading tech. If they dont have some unique bot trading tech then the market will be overun with these arbitration bots and they will not be making 1% a day competing with other bots.

    Ponzi schemes work great for the people who get in early and get out quick. Most people don't do this.. They invest $100 then see how they actually made money.. that's when the greed kicks in and they drop the big money...
    When people stop getting recruited/buying in and everyone try's pulling out their money that's when it all falls apart - because there is no money.
    It is in BCC's best interest to keep this going as long as possible.. They will continue to take in money and pay out money. As long as they are getting more $$$ in per day by investors they can keep running the ponzi. When new money stops coming in that's when it will shutdown.
    First they will dump all their BCC on the "exchanges"
    Then they will start freezing withdrawals (while accepting deposits)
    Lastly the site will disappear a long with a lot of money.
    Last edited by R3kttt; 11-05-2017 at 01:22 AM. Reason: typo

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  5. #3
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    If its really a ponzi scheme then it would be the biggest crypto scam ever?
    Like $1b scam..
    Why wouldn't they scam us already because its already so much money

  6. #4
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    It's a huge Ponzi scheme.

    • 96% of tokens traded on their own exchange, allowing them to manipulate traded volume, and to some extent the price
    • 1% daily returns is near impossible, and unsustainable even if they did manage it a few times
    • No company face, and very little transparency, making shutting it down and running away easier.
    • Their process of investment is designed to create artificial growth, forcing people to buy BCC in order to 'invest'
    • Very poorly done advertisements, which broken English, for a supposedly "professional" company

    I know some people who have made profits from it, but realistically it's too late to invest now, especially since some smaller market cap websites are starting to delist it, and several notable 'crypto people', like Vitalik Buterin, are outing it as a Ponzi.

  7. #5
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    Allura's Avatar
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    Quote Originally Posted by R3kttt View Post
    Why would they need our money to power the bots if they could make 1% a day
    The argument to this is that we as a whole community can raise more funds. More funds = more control of what the price of bitcoin is. With more funds you can manipulate the price. The other part is that if they used corporate loans, their trading would become legalised. That could also be the reason why they don’t want to share their team’s names. They also made that huge market cap drop from 2 billion to 600 million probably because if they kept going, governments would start putting regulations on them

    PS: I am arguing the opposite of what anyone says to give both sides of the story

    - - - Updated - - -

    Quote Originally Posted by MargotRobbie View Post
    If its really a ponzi scheme then it would be the biggest crypto scam ever?
    Like $1b scam..
    Why wouldn't they scam us already because its already so much money
    Right now they are getting new sign ups/investors everyday, so their ponzi still works. The example I give in the first post is Bob, Steve and James. If there is no one after James, they exit scam. However, if there is people after James, their scam is sustainable and they get to run away with more money. Also don’t forget that the more they wait, the more money they make. The devs of bitconnect probably own a large portion of bitconnect. Every day the price of one coin goes up and up. Also remember that they also have a withdrawal fee and exchange fee making them more money
    Last edited by Allura; 11-05-2017 at 01:48 PM.
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  8. #6
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    When this blows up it will seriously discredit Cryptocurrencies. Finally, cryptos are getting more and more accepted. It's such a shame that an obvious Ponzi scheme could grow so large. There are so many amazing startups out there using crpytos but this is going to totally destroy them.
    After this hits the news investors will their money and we will see a huge selloff like never before. :/

  9. #7

  10. #8
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    Quote Originally Posted by MargotRobbie View Post
    If its really a ponzi scheme then it would be the biggest crypto scam ever?
    Like $1b scam..
    Why wouldn't they scam us already because its already so much money
    No one is going to beat Hashocean scam.

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  11. #9
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    It's an obvious ponzi scheme like cryptrade

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