How is Bitconnect Sustainable? How is Bitconnect Not a Ponzi?steemCreated with Sketch.

in bitcoin •  2 years ago 

In order to respond appropriately to these questions, one must understand that the asker is asking this based on several misconceptions. Most people lump Bitconnect in with the likes of Control Finance, Bitpetite, Coinreum, etc. These are programs where people lend their bitcoin to a company who feeds them a story about how they are able to multiply their funds and give them a nice return based on how the company invests the money. Some claim to be trading, some claim to be investing in certain technologies, some claim to be mining, etc. The company agrees to repay the investor in the same currency that was borrowed. Bitconnect does not operate in this fashion. Unlike all of these programs, Bitconnect has a coin, an actual Crypto-currency. To date, there hasn’t been a single lending program that has come to market (beyond the ICO stage) with a coin and a working blockchain that has failed, exited, or scammed and run off with people’s money.

In order to explain the sustainability of Bitconnect, one must be able to resolve several misconceptions about how it works.

Misconception #1: We lend Bitcoin to Bitconnect.

This is false. We do not lend Bitcoin to Bitconnect. We buy Bitconnect Tokens using Bitcoin in order to make a loan on the platform. These tokens are purchased on an exchange. The person on the other end of the trade can be any member of the Bitconnect community or Bitconnect itself. What this means is that the Bitcoin doesn’t necessarily go to Bitconnect every time BCC tokens are purchased.

Misconception #2: We are paid out in Bitcoin.

This is false. All payments (including referral bonuses) coming from Bitconnect are made using their own BCC tokens, not Bitcoin. If a lender wishes to obtain Bitcoin, he/she must exchange those tokens for Bitcoin on an exchange. The person on the other side of the trade offering their Bitcoin in exchange for Bitconnect are often other members of the Bitconnect community wishing to obtain Bitconnect coins for the purpose of making a loan. A person wishing to exit the platform with Bitcoin is only limited by his/her ability to exchange those tokens for Bitcoin on any of the exchanges where BCC is traded. Bitconnect is not responsible for providing lenders with Bitcoin. They are only responsible for satisfying loans with their own BCC tokens.

Here is the data on Bitconnect’s BCC token supply according to Coin Market Cap:

Circulating Supply: 2,138,092 BCC
Total Supply: 8,392,580 BCC
Max Supply: 28,000,000 BCC

The circulating supply includes all tokens not being held by Bitconnect. The total supply includes all tokens that have been created to date. The max supply includes all tokens that will ever exist. When a person makes a loan on the platform, they are making a loan for a certain dollar amount worth of BCC tokens, not Bitcoin. When they are paid back, they are paid back a certain dollar amount worth of BCC tokens, not Bitcoin. The value of the coin plays a huge role in determining how many tokens are needed to make a loan in the beginning and how many tokens are required to be paid back at the end. For example, if a person wants to make a 100 dollar loan and a BCC token is worth $1 at that time, he will need 100 BCC tokens to make a $100 loan. However, if by the end of the loan period, the value of the BCC token has risen to $10, he will be paid back only 10 tokens at the time of his capital release. Due to the fact that the BCC token is in high demand, the token value continues to rise and those who made a loan earlier in the year are often paid back less tokens than what they originally lent, albeit with the same dollar value.

Why is this important?

This is important because the concern is that Bitconnect will run out of funds to pay their investors. However, most do not know that the payments are made using a coin that Bitconnect controls and of which Bitconnect seemingly has an endless supply. The reason why it seems as if they have an endless supply of coins which they can pay out is because whatever amount of coins they pay out are sold and promptly returned to Bitconnect for the purpose of making a new loan. This is not a coin that most people hold for the long term benefits. Bitconnect does not run out of their own coin. Hence, they do not run out of money to pay their investors. Recall that the amount of BCC tokens in circulation according to CMC is 2,138,092 BCC. That means that they still have 6,254,488 coins sitting in wallets which they can use to pay their investors. Currently, the value of a BCC token is $280.82. If we multiply $280.82 by the total supply of 8,392,580 BCC, we get $2,356,804,315.60. That is how much Bitconnect could pay out at one time if necessary. Mind you, it is highly unlikely that any investor in Bitconnect will try and cash out over 2 Billion dollars at one time on the platform. Yet, if this were to occur, then the total supply of coins would be enough to make them whole. Recall, the max supply of Bitconnect coins is 28 million. Let me also remind you that once Bitconnect pays an investor out in their own coin, they have satisfied their end of the deal. The investor, if he so chooses, must on his own trade those coins for Bitcoin or for any other coin.

This completely refutes the allegation that Bitconnect takes new money to pay old members, which is the definition of a Ponzi. Bitconnect only conducts loan transactions using their own BCC token. Bitcoin is only used to purchase BCC tokens. That is where Bitcoin’s involvement ends. Bitconnect pays out in their own coin which is traded for other coins such as Bitcoin, Ethereum, Tether, etc. Bitconnect is not responsible for anything beyond paying out a dollar amount worth of their own BCC token.

Could Bitconnect Fail?

Of course, Bitconnect can fail just like any business can fail. What could cause Bitconnect to fail? Bitconnect could fail…

1). If users stop using the platform. Just like any business, if people stop using the service, there would be no reason to stay in business.

2). If the value of the token drops to a level where all available tokens wouldn’t be enough to pay investors. For example, if the token value drops to $1 and there are 28 million tokens and more than 28 million dollars worth of their tokens need to be paid at once, Bitconnect could fail. How likely is this?

3). If Bitcoin is no longer in existence, or Bitcoin is no longer volatile. However, they could also add other coins which are more volatile than Bitcoin and use those as a metric to pay interest to investors.

4). If Aliens invade and create a whole new financial system.
What I do not see is Bitconnect running out of their own coin to pay their investors. Not when they have a max supply of 28 million and the value of the coin keeps rising.

Why the Value of the Coin Continues to Rise

The value of the Bitconnect coin continues to rise because, unlike most other alt coins, it is not a speculative asset. In other words, most people are not seeking to buy it low and sell it high. They are seeking to buy it to do a loan and they do not care what the price of the coin is. They simply wish to buy a certain dollar amount worth of BCC tokens to do a loan. That is all. Hence, If I have $100 dollars to do a loan, I do not care if the coin costs 0.0370000 satoshis or 0.390000 satoshis. A seller can ask for any amount for the coin and will most likely get it. I will more than likely only be holding the coin for a maximum of five minutes before I use it to do a loan on the platform. When exiting the platform, if I choose to exchange the BCC tokens for Bitcoin, I could demand a high price, because at that point I care about how much BTC I will get for my BCC tokens. This is what causes the price to rise rapidly and not fall. The dollar amount quoted for a BCC token is based up two factors: the amount of Bitcoin a single BCC token is worth and the value of Bitcoin. At the time of this writing, one BCC token is worth 0.038491 BTC and BTC is worth $7293. This gives us the price in dollars of a single BCC token as $280.75.

Does Bitconnect really have a trading bot?

This question is often raised by people who doubt that a trading bot exists, despite the fact that anyone can purchase a trading bot for a couple of hundred dollars. They demand to see the trading bot and how it works even though most major financial institutions such as JP Morgan and Goldman Sachs do not reveal their trading bot and how it works, yet many invest in them. The fact of the matter is that Bitconnect sells its coins for Bitcoin. The Bitcoin that they earn from the sale of their BCC tokens does not play a role in the process of repayment of its investors. Therefore, what they choose to do with the Bitcoin is irrelevant. I can only assume that in order to finance their operation, Bitcoin must be sold for some real world currency, which would imply that they are indeed trading Bitcoin.

How are investors paid? How can Bitconnect guarantee 1% a day?

Bitconnect does not guarantee 1% a day. Investors are paid an interest percentage based upon the volatility of Bitcoin. A common misconception is that Bitconnect trades Bitcoin and pays an amount based upon how much they profited on that trading day. This is assumed, but never explicitly stated on their website. Investors are paid solely based upon the price of Bitcoin at the time the market closes. I am on the west coast of the United States, and the market closes at 4:00 PM here. If the market closes higher or lower than the day before than I am paid an interest based up on how much higher or lower it closed. The only time investors aren’t paid anything is when Bitcoin closes at nearly the same price multiple days consecutively. Previous performance shows an average of 0.9% daily.

In summary, Bitconnect does not meet the definition of a Ponzi because all payouts are conducted using its own currency of which it has a seemingly endless amount. Bitcoin is only used to purchase BCC tokens to do a loan. The Bitcoin is never used to pay back investors. The amount of BCC tokens used to pay back investors is determined by the value of the coin at that time. The amount of coins in Bitconnect’s possession is enough to settle a capital release ranging in the Billions of dollars. In order for Bitconnect to fail, Bitcoin would have to cease to exist or to become non-volatile. Bitcoin does not guarantee a certain percentage on your investment, but averages close to 1% per day.

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If the market closes higher or lower than the day before than I am paid an interest based up on how much higher or lower it closed.

People buy BCC to lend them to an imaginary trading bot that wins all the time backed by a centralized exchange fixing the price of the token the debt is to be paid with.

Did you ever ask yourself why the BCC bot needed to borrow money at such a high interest rate if it always win?

For example, if the token value drops to $1 and there are 28 million tokens and more than 28 million dollars worth of their tokens need to be paid at once, Bitconnect could fail. How likely is this?

How likely? It's inevitable.

Word!

If the bot would really be that good you would just go to a big market place like bitfinex, use a huge leverage and keep going...

Really disappointed in the people upvoting this post.

Seems like an honest attempt at trying to rationalize how BCC work. It's an epic fail though.

So you are Basically stating the different reasons Why IT IS a Ponzi.

Epic Fail trying to convince us it isn't.

Just using your points:

  • First and most convincing argument. I just calculated that if you invest 10 000$ and reinvest every penny you get, with a 0.5% daily interest you would have 10 405 071 in 2 years. This is unrealistic and I do not think anyone would believe this is a "guaranteed return".
  • "It is not a Ponzi because they create their own coin". I see where you want to go, but the fact that they basically print money out of the thin air for the only purpose to pay back "investors interests" is already a huge sign of Ponzi. In addition, except paying back interests, what is the purpose of this coin/company?
  • "They have bot to trade with complicated algorithms". First, in your Post it is obvious that you do not believe in it. Therefore as @transisto stated, why would a company that has already hundred of millions the need to borrow money and paying expensive interests? If it works as they state, why would they have the need to? In addition, as you have more money (let's assume they did not lose most of it paying the first Ponzi BCC investors) it becomes difficult to trade with the same accuracy and making money out of trading is harder. This is why most Succesful Investment Funds have a limit of money they can manage to perform the same way as before they became "well-known".
  • "Only and if only the price of BCC drops it would be in big trouble". This is a sign of Ponzi when a company or fund cannot pay back its investors because its currency / Fund Share Value is not rising anymore / Fresh money
  • 5-8% Referral Bonus? Don't get me started on this...
  • We do not know the Founders, How weird...
  • They are registered in the Caymans Islands, How weird...
  • They promote their platform on CoinMarketCap to attract new "customers". I don't understand? Are they in an IPO process? Why would they need to have fresh money to make their platform work?

Here is their "Advertisement"

And if you tell me it's not them, it's even worst that investors would do that as they know it's a Ponzi and need fresh cash.

PEOPLE YOU NEED TO GET AWAY FROM BitConnect AS SOON AS POSSIBLE!

Saved(Bitconnect). Might need this later.

I wanna get into bitconnect. What is a good starting investment? Also have you heard of icotoken? Is it good?

" Currently, the value of a BCC token is $280.82. If we multiply $280.82 by the total supply of 8,392,580 BCC, we get $2,356,804,315.60. That is how much Bitconnect could pay out at one time if necessary."

You are a fucking moron and a scammer.

Get the fuck out of here forever, criminal.

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"Currently, the value of a BCC token is $280.82. If we multiply $280.82 by the total supply of 8,392,580 BCC, we get $2,356,804,315.60. That is how much Bitconnect could pay out at one time if necessary"

How is this correct? No matter what way you trade it nothing close to that sum could actually be raised nor would bitconnect have any motive to provide 2billion in bitcoin either.

Should bitconnect attempt to flood the market with anything even remotely close to that volume it would lose 99% of its value in 24 hours before anything close to that sum was sold.

"How is this correct?"


It's not. If someone is spouting things like these, you know you should stop listening ASAP and walk away.

  ·  2 years ago (edited)

It was a rhetorical question. Craig is not stupid enough to actually believe what he said. It's just plain old shilling and half truths.

Wolf in sheep's clothing one could say.

Or BCC's creator dun dun dun

Do you believe him to be evil?

Of course not

In summary, Bitconnect does not meet the definition of a Ponzi because all payouts are conducted using its own currency of which it has a seemingly endless amount.

Oh I get it, it's not a classic ponzi scheme instead its a new and improved ponzi scheme 2.0, thanks for the clarification...

Also Grant I see you got your girlfriend doing Scamconnect promotional videos on YouTube as well now, flashing all her Gucci shit and acting surprised about her first referral of $900 from a single unknown person (likely you Grant...).

Anyways both you can have fun continuing to pump your little baby ScamConnect, but don't be surprised if the people showing you complete love right now, one day switch to showing you nothing but absolute hate when this BCC house of cards enviably comes crashing down.

The videos may lead to people stopping investing. Which is actually quite hilarious

Managed to get another big crypto name to take notice (and i say it like that cause i cant spell it 😂)

https://twitter.com/aantonop/status/930560000107405313

Couldn't Bitcoin crash for the same reasons? Bitcoin only has value because geeks like it.

  ·  2 years ago (edited)

"Couldn't Bitcoin crash for the same reasons? Bitcoin only has value because geeks like it."

Possibly, but since you want to make that comparison, lets test your logic a little bit?

  1. Bitcoin has been around for ~8 years and has proven its versatility up to this point, Bitconnect has been around for ~1 year and so far has not seen any major obstacles to test its versatility...
  2. When you buy Bitcoin your principle investment is controlled by you (on an exchange or in a wallet), when you invest in Bitconnect your principle investment is locked up for months at a time and is controlled by Bitconnect (within the BCC system)...
  3. The price of Bitcoin (BTC) is determined by the buyers/sellers on each exchange at whatever price they are willing to accept (hard to corrupt, natural), the price of Bitconnect is largely controlled by Bitconnect itself due to almost all transactions taking place within their own system (easy to corrupt, controlled (and FYI their so called "trading bot" is actually exclusively on their own BCC exchange and is used to game the price of their own token between their users inside their system))...
  4. Bitcoin is offered on a HUGE amount of exchanges with a decent volume split between many of them, Bitconnect is offered on hardly any exchanges and over 95% of all BCC transactions take place on a single exchange (Bitconnects personal exchange, the other exchanges being basically no-name exchanges with almost non-existant BCC trade volume)...
  5. At the current time a decent amount of people in the real world are willing to trade tangible items for Bitcoin (BTC), at the current time hardly anyone in the real world is willing to trade tangible items for Bitconnect coins (BCC)...
  6. Bitcoin is highly transparent about its team and how it functions, Bitconnect is highly secretive about its team and how it functions (we have a trading bot (trust us), we have a legit company owner (you just will never actually see him), our platforms structure can last for the long run (even though due to compound interest and exponential payouts is mathematically impossible))...
  7. Bitcoin doesn't rely on affiliate/pyramid style marketing techniques to continue its growth, Bitconnect relies heavily on affiliate/pyramid style marketing techniques to continue its growth...
  8. Bitcoins creator is unknown but the platform has a dedicated and highly public development team with faces behind it, Bitconnects creator and development team are highly secretive and questionable at best with no real faces behind it...
  9. Bitcoin doesn't rely on paid YouTube ads and website banner ads to draw in new users, Bitconnect relies heavily on paid YouTube ads and website banners to draw in new users...
  10. The concept behind how Bitcoin works and is distributed makes logical mathematical sense (hard-coded exponential reduction of newly distributed supply over time, increasing its value over time), the concept behind how Bitconnect works and is distributed doesn't make logical mathematical sense (relies on exponential increase of newly distributed supply over time, increasing in value at first while they can game the system but quickly hits a point where massive value decline is enviable).

I could go on with more, such as BCC reducing its payout %s or total coin supply whenever they feel like and other shady as hell red flags but I think I got my point across already so I'll stop at 10 points. Basically when everything is said and done, your Bitcoin vs Bitconnect argument is like comparing apples and oranges. Whatever, since your defending Bitconnect, that means you are highly likely invested in the platform, but the irony is any good ponzi scheme relies on drawing people in and making those people defend the scam due to being financially/emotionally invested (like you probably are), a method which is always used by a ponzi scheme to prolong the scam for as long as possible.

"Bitcoin only has value because geeks like it."

Who do you think made the computer/phone that you are using? Well basically every single thing of value...............

bitconnect will live as long as Bitcoin lives

I invested in bitconnect even though I believe it's a scam, guess I just like doing stupid stuff with my money sometimes. At least I've recovered my initial investment though so I've been lucky, in profit territory now

To touch on the whole trading bot thing, just think for a minute.
B4 you actually entertain the question "do they have a bot?" how about asking yourself "how incredibly dumb would it be for them not to have a bot to generate more income?" Like the post says, anyone could purchase a trading bot today for a couple hundred dollars...sooo why wouldn't a billion dollar company have one if its going to make them more money?
Of course its a bot...the coin is so valuable it just doesn't matter

I invested the minimum $100 in bitconnect on August 6th, the funds came from what I earned from posting on steemit. As of the writing of this comment that investment has earned $136.69 in interest. That's an average 1.41% daily return on the time I spent in writing posts and creating content for steemit. If it ends up being a ponzi scheme, what have I lost really? Time? Time that I could have been doing what? Posting on Facebook and not getting paid for it anyway. I for one am willing to take that risk. I have 0 referrals by the way. I'm planning on letting this investment ride for a few years at least. When I get to the point I'm earning roughly $200 a day interest I'll cut my reinvests back to only 2 days a week and pocket the grand in interest each week.

The point is you didn’t pay in dollars, you paid in btc. If you had just kept the btc you would retain control and earns more than $136. Also, I assume that’s all reinvested?
I invested a similar amount in July and I have withdrawn btc and have managed to recover well under 50% of my initial investment.
Its a scam. Prob not a traditional ponzi but people are going to lose a lot of money.

Craig invested $100. All the rest of it came from referral fees, convincing others to invest their money!

I agree ...BCC price always remain in co-relation with BTC price, which itself proves it authenticity.

actually BCC price will go up even when BTC goes into a bear market... I am hoping for a BEAR market for BTC and then I will sit with BCC and laugh my ass off :)

I know Bitconnect will be on the top of CMC within 1-2 years... Craig I told you about this thing... why you didnt put me as sponsor or correct it now??? Come on MAN!!!...

Anyway love your job no matter what...

Steem on!

Lasse

  ·  2 years ago (edited)

Vitalik Buterins opinion about Bitconnect: https://twitter.com/VitalikButerin/status/926236948238360576?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Fthenextweb.com%2Finsider%2F2017%2F11%2F03%2Fethereum-buterin-bitcoin-bitconnect%2F

Good luck to you mate, but to everyone else, don't put your money down on this, if you have, get it out.

If @vitalik uses twitter instead of Steemit, he is already behind... yes he made Ethereum, that in many ways are outdated... I don't care what @vitalik says about Bitconnect, the fact is that it has changed my life dramatically and I believe it will not go anywhere in the coming years...

I hope everyone else is wrong then and those who have money in BitConnect are right.

" I don't care what @vitalik says about Bitconnect" - I hope others want to hear what one of the smartest minds in crypto has to say about a project before putting money into it. That would only be wise. And being wise with money means you are less likely to lose them. So, follow lasseehlers who doesn't care and craig-grant who says things like

"Currently, the value of a BCC token is $280.82. If we multiply $280.82 by the total supply of 8,392,580 BCC, we get $2,356,804,315.60. That is how much Bitconnect could pay out at one time if necessary"

or listen to the man who has been in crypto for years and has created #2 cryptoproject in the world and is looked up to.

Just a warning to those who are still not hooked into this

I understand your reasoning, but at the end of the day Bitconnect is paying me everyday.

All ponzis do, until they do not. Stay safe and good luck.

I would not call it a ponzi, but it looks like it yes... that is why I only recommend investing 25% of your portfolio in Bitconnect... even that is hard, since the profits are so high.

If we can keep calling Bitconnect a Ponzi then why not call Bitcoin one too? Why use the phrase of the government regulator to determine the worth of a decentralized technology?

It is risky, I even must admit, but so is Bitcoin, these ICOs, and practically everything else in this space. The same risk you take when you put $10,000 into some ICO, you are taking a risk putting it into some Bitconnect loan, or holding the Bitconnect token, it is opportunity cost.

But if you've got so much money that you don't care if you lose 10k, or if you are betting on crypto for fun or just because you don't know what to do with the money, well then it becomes different.

The issue is, no one should be betting their rent money or their last dollar on any of these tokens, not even Steem.

  ·  2 years ago (edited)

Are you seriously comparing Bitconnect with Bitcoin? Wow. There is a difference between putting money into obvious ponzi and investing in a risky ICO. To anyone not yet invested into this scheme, there are many other ways to take high risks to gain high rewards.

https://steemit.com/bitconnect/@vlemon/warning-do-not-invest-in-bitconnect-it-is-a-ponzi-scam-read-these-10-reasons-why

Go over the points in that post. Take your money out while you can, don't be daft.

So you are a true believer indeed. But these true believers also gave initial value to Bitcoin.

I did however see that Bitconnect development has stopped for the coin. They have so much money but so little development on the technology to make the platform uncensorable? Yet the focus is so much on starting up anonymous companies and so on?

Why not just hire some programmers to truly build it out so it does sustain?

VitalikButerin Vitalik Buterin tweeted @ 02 Nov 2017 - 23:57 UTC

@bccponzi @CapitanEvropa @chrisachilli @SatoshiLite Yeah, if 1%/day is what they offer then that's a ponzi.

Disclaimer: I am just a bot trying to be helpful.

That argument could be used against Bitcoin or Ethereum or any ICO which grows 500% in a year.

Many of the same arguments which are 'favorites' against Bitconnect also can apply to Bitcoin. In Bitcoin early miners had to lend their computation resources in exchange for these tokens which somehow kept increasing in value. In the beginning you could barely buy Bitcoin, only on mysterious exchanges, and only one anonymous developer started it.

This is not to say that Bitconnect will last for years and years like Bitcoin but only to say we cannot immediately look at a project and be quick to label it a Ponzi or Pyramid Scheme unless we don't mind when people do the same to Bitcoin. A lot of people will lose money in Bitcoin because the market eventually will crash, but then some people at the top of the Bitcoin pyramid will have lots of money. Then you have ICOs some of which have actual 'pre-mine' which if we compare it to Bitconnect would be like a group of people who have been given credit for having given a loan. If we merely look at percentage return on investment well look at Ethereum which went up probably 2000%. If Ethereum is up 2000% couldn't people say that it has to be a Ponzi, Pyramid, or a bubble?

https://steemit.com/freedom/@godcomplex/if-bitconnect-is-a-ponzi-scheme-why-isn-t-bitcoin-also

  ·  2 years ago (edited)

Get your money out of Bitconnect before it's too late. Last ones won't be able to. You've been warned by Vitalik Buterin : https://twitter.com/VitalikButerin/status/926236948238360576?ref_src=twsrc%5Etfw&ref_url=https%3A%2F%2Fthenextweb.com%2Finsider%2F2017%2F11%2F03%2Fethereum-buterin-bitcoin-bitconnect%2F

VitalikButerin Vitalik Buterin tweeted @ 02 Nov 2017 - 23:57 UTC

@bccponzi @CapitanEvropa @chrisachilli @SatoshiLite Yeah, if 1%/day is what they offer then that's a ponzi.

Disclaimer: I am just a bot trying to be helpful.

Sure it's not a pyramid scheme, they only show a pyramid as a visual aid right ?

I have a different outlook when it comes to bitconnect and the cryptomarket in general. There are some great projects out there that I truly believe in (PAY, BAT, NLC2... and more).

It seems like the majority of people are always searching for the next big thing. There are so many ridiculous ICOs and coins that are worth far more than they should be. Most of them won't ever come to fruition.

When you are investing into crypto, the only question you should be asking yourself is:

"Will this make me money?"

We sit here and focus on the technology of a coin and the possibility for it to change the world. SiaCoin has a great platform (not interface) that provides a great storage solution. The coin is basically free at about 60 sat.

Stop flaming bitconnect. If you hate it, continue hating it. Stop trying to convince people that it is a scam. It's obvious that nothing could sustain infinite 1% compounding payouts. Maybe they will scale down their interest, maybe there is a bot - who cares. Regardless, it can't sustain in its current condition. The math is very simple on it, and if anyone refuses to believe it, they obviously will never change their mind regardless of what you say. If you love bitconnect, great. Stop trying to convince everyone else that it is great. Let them make their own decisions on how to invest into something that is very volatile.

At the end of day, your job is to ask yourself - "will this make me money?"

The answer with bitconnect is: Yes - at the moment. It could be around for 2 years, it could end in 5 minutes. No one knows. Diversify your crypto holdings. If you can afford to hold some volatile investments that could provide high rewards, but also could go to 0, then invest in bitconnect. Don't push it down everyone else's throat. Don't sign up under a youtuber or referral spamming prick and encourage them to continue spamming.

Use a service like BCCshare.com or another referral sharing service so you can get your referral links used without you spamming endlessly. I have 3% of my crypto investments in bitconnect. I used a referral sharing service because I refuse to shove my referrals down into people's throats. It's a terrible system that creates endless spam. If you've ever visited r/bitconnect ... you are in for a very bad time.

The point is the only way to make money on bitconnect is to push referrals. If you just do loans you are better off just holding btc!

Great article. I still have friends not believing that bitcoins are a serious thing.

Follow and upvote me please ,I did the same for you😊

You are so on target and right with bitconnect. i wish more people would wake up and listen to you. They would be much farther ahead.

If someone on a centralized exchange uses "Margin trading" or in other words credit (money invented from thin air) to buy Bitcoin to margin trade at 5x or 10x, this is known to create bubbles. Yet these bubbles are considered legitimate bubbles by a lot of people in the Bitcoin community even if other people outside the community can see it as leveraged gambling.

Is Bitconnect the equivalent of gambling philosophically? I'm still trying to wrap my head about Bitconnect. I do see how with a bot in theory you can actually create risk free interest. Options trading actually can do this in the traditional markets.

That said the economics and math behind this stuff is unfamiliar and I'm not a mathematician so I cannot evaluate it. I asked multiple times whether or not Bitconnect is decentralized to the people who claimed it is a scam with absolute certainty yet if it's decentralized then even if it's a pyramid it might not be so simple to diagnose as a scam. Because I don't fully understand it, I haven't been willing to risk very much as I don't actually know how sustainable it is, I did on calculation which indicates it cannot be sustainable forever because it gains from volatility but volatility doesn't last forever. It reminded me of options trading.

Reference

  1. https://www.investopedia.com/university/options-pricing/black-scholes-model.asp

Good jop friend.
I like

This post led me to ask the question, if Bitconnect is a 'Pyramid Scheme' why isn't Bitcoin also? They are both high risk, people could say some of the same arguments used against Bitconnect against Bitcoin.

I think there is a bot, that trades the volatility, and the reason is we actually make money when Bitcoin DROPS quickly.

When Bitcoin is flat. No payout.

Which makes Bitconnect an amazing way to hedge against drops in the price of Bitcoin.

Hey guys Im going to start my journey in Bitcconnect and will blog the whole thing, from my first loan all the way to my first capital release.

I will make my first loan today and blog the whole thing.

Let me take all the risk for you and see if its the real deal and if it is you can join yourself, but if it is a scam I will expose it.

Be sure to follow me to see how it goes and tell your friends to check it out and would appreciate all upvotes thanks.🤓

Check out my first blog on it below. 👇

https://steemit.com/bitconnect/@californiacrypto/join-me-on-my-bitconnect-journey-going-to-try-it-out-and-blog-my-whole-journey