Bitconnect will never run out of BCC to pay its users (and why that doesn't matter)

in #bitconnect6 years ago (edited)

Bitconnect owns the majority of BCC coins in existence, not only that, they are gaining more BCC by the day through their Proof of Staking algorithm. They are literally paying their own users to drive up the price of their coin (which is good for them as they own a majority of it) and the higher the price of the coin, the less BCC they have to give out.

Bitconnect will never have a problem of having enough BCC to pay out their users.
This is great right? It will last forever? Not exactly...

Looking at their internal exchange, they have 300+ pages of sell orders and 275+ pages of buy orders.

Remember that the only way to cash out your BCC tokens is to sell them on their internal exchange. So it doesn't matter how much BCC tokens you have if no one wants to buy them.

The system is working now because there are more people investing bitconnect rather than cashing out. There will come a day where the amount of daily withdrawals will surpass the amount of people who want to invest. This is where the system will start to collapse as more and more people who want to cash out wont be able to since there won't be enough new investors coming in who are willing to buy their BCC coins for BTC.

Important Part

If you think about it, the only way new BTC is coming into the system is through new investors coming in daily.

  • The old investors aren't putting in new BTC, they're just reinvesting the interest.
  • Bitconnect doesn't pay in BTC, they pay in BCC.
  • It doesn't matter how much BCC coins bitconnect can produce, if they run out of new investors who are willing to exchange their BTC for BCC, everyone will eventually be stuck with BCC coins that are pretty much useless outside of the bitconnect website.

In short, the only way old investors can cash out is when new investors cash in (sounds familliar?)

If you are currently invested into bitconnect, be weary of the signs of when the collapse will start to happen.

  • Check the ratio of buy orders to sell orders, if the number of buy orders start to outweigh the sell orders significantly, then it's time to contemplate on whether or not you want to stay invested
  • Constantly check if the popularity of bitconnect is growing (i.e. google trends, etc).
  • If you have any additional tips, comment below
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