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