Is Bitconnect a Scam or Not? Proof w/ Facts
I present my research into the truth if Bitconnect is a scam or a legitimate opportunity. The world is changing so rapidly today. For us today is important to try and learn as much as possible about new technology and keep up or we will get left behind.
The question being asked by some is this sounds too good to be true. If somebody had the ability to trade in such a way why would they allow you to benefit from that? Well, I know I would in order to raise money. The same way Apple or Google went public to raise money. Today money is raised in new ways like ICOs.
There is no Bitconnect trading bot?
Since there is not too much information on the bot itself many people say that it is a scam. And since there are multiple layers to the referral program they call it a pyramid scam.
Let’s pretend that do not have a trading bot for a second (which I believe they do and that 0.8% a day is possible) but let’s pretend they don’t have a trading program. The market cap of BitConnect is $394 million as of this morning. $394 million with a M or how much FaceBook was worth when it went public. If it were a scam don’t you think they would had already run away!
When the company created their BitConnect Coin (BCC) they performed a pre-mine to to generate at least 4.8 million coins (think stock in an IPO). Then they have adopted a Proof of Stake / Proof of Work system. In cryptocurrencies Proof of Stake means that you’re rewarded interest in exchange for not selling your coins. Here is the interest you are rewarded:
In the past year from August 2016 to August 2017 they have accumulated $102,187,320 in interest alone from their Proof of Stake. $100 million.
There holding of 4.8 million coins has appreciated from pennies per coin to +$60.
- Started at, 4.8 million coins x $0.145625 = $690,000
- Today, 4.8 million coins x $63 = $302,400,000
Interest from Proof of Stake alone on their holdings alone would cover all payments today. But I expect BitConnect Coin trades into the triple digits within the next six months easily.
That does not mean there is not a trading bot program though. It is possible for a good auto trading software to get good returns like this on a very volatile currency like Bitcoin. I imagine these young Asians behind BitConnect are better programmers than me. I imagine they are using their bot to generate returns and using their profits for further proof of stake of their coins.
BCC is also a store of value. The more investors who lend money to BitConnect the greater the value. There are only 6,267,997 BCC in supply.
It is quite possible that BitConnect is perfectly legit and many made judgements too earlier without really doing their own research.
I truly hope this turns out to be a legitimate venture and does not place any type of black mark on cryptocurrencies. That would be bad. The average deposit into BitConnect is around $220. Be careful and never risk more money than you can afford to lose in any investment.
Compounding interest at 26% a month is worth it for me to risk some capital and give it a try. I will keep you updated on my progress and findings.
#1) How to Earn Bitcoin with BitConnect's Interest Payouts
https://goo.gl/Ehseiu
#2) Make your first $100 loan Bitcoin to BitConnect
https://goo.gl/Kk2QWM
#3) +9.2% Gain my First 7 Days into BitConnect
https://goo.gl/WRZCzy
Great Post @jordanlindsey Extremely informational and yet unbiased. I up voted and resteemed, hope it helps. BTW, I also wrote a few posts on Bitconnect, but it is a sensitive subject here. There fear is that it might be a ponzi and would def. blemish crypto and Steem if we are discussing here. I had a referral link on my earlier post but don't for now. There will be a few days that Bitconnect will shut down trading and interest payments with this Segwit B.S., so if they are to run, then would be the time. If they come back online it would bode well for the future of bitconnect.
I greatly appreciate the upvote and resteem. It is helping get views or sure! Good points, July 31st through August 3rd, 2017 there will be no interest paid. And no withdrawals or deposits can be made in Bitcoin. And no new loans can be made during those 4 days.
As you noted because of all of the Bitcoin drama, BitConnect needs to make sure everyone including themselves is protected during the uncertainty. Or as you pointed out a good time to run. If they come back, as I fully expect they do, I will be adding to my investment. Thanks again @streetstyle
Thanks @jordanlindsey These are interesting moments in the life of Bitcoin.
This comment got a
2.23% upvote thanks to @jordanlindsey - Hail Eris !I foresee bitcoin going up to $5,000 in september.
We will see how far the pop above $3,000 goes and FOMO carries it to $4,000. But, yes, and it will carry all crypto with it including STEEM making another run at $4.00 this year.
You are very correct
I am on board with the Bitconnect program. I follow you and dig your content. I dig this article... And have nothing negitive to add... But for accuracy you shold change your post to Million... with an M... total Marketcap is trying to reach 100 Billion and most of the weight is being covered by BTC @ 45B and ETH at 22B... lol if BCC were 355 Billion with a B. But its cool. Still good information, super not a scam in my opinion.
11 BitConnect BitConnect $378,586,382 $60.38 6,269,689 BCC
On the correction right away! Thank YOU
Good post! I gain more confidence in Bitconnect as time goes on and people present new information. Also nobody has had a problem yet with payouts from Bitconnect. I believe the trading they claim they are doing is possible and likely happening as I have seen good traders pull 3-5% daily in other markets and that's without a bot. Only time will ease peoples skepticism. As I have said before, scam or not, it is a risk either way.
It is true. It is a risk either way. Like @decentralization pointed out - the risk is for 4 months and then it is 25% monthly gains, without reinvesting. Reinvesting obviously causes the compounding growth.
great post, i am researching bitconnect the smae way as you do, it looks like a well made site and looks like it is not a scam because they are already rich with this platform, they dont need to run away with the money raised, if the bot is trading they can accumulate wealth basically for ever as bitcoin stays volatile
Defintely not a scam in my opinion!
This post got a
13.81% upvote thanks to @jordanlindsey - Hail Eris !This post received a 4.4% upvote from @randowhale thanks to @jordanlindsey! For more information, click here!
Seems like a good opportunity. I will only risk $1000. If it works I can make 25% a month. Four months of risk and then 25% gain monthly.
I agree with @phranky.
It's legit tho.
Nice post.
Upvoted
Do check my profile too!