You are viewing a single comment's thread from:
RE: BitConnect Scam: How Many People are Involved? Post 4
I like your articles a lot. I just made an article that shows how to calculate the maximum profits of the Bitconnect Trading Bot. I would love your feedback: https://charlestines.com/2017/10/10/proof-of-bitconnects-profits/
I think your math and reasoning is sound, but I don't think the logic holds up. Let me start by saying it is very hard for anyone outside to know what is going on so all I have is speculation based on what we put together. See I was under the impression this imaginary bot traded bitcoin not BCC. Most of the BCC is and has never traded. (just assume all top 100 people are founders of the scam. There is a good number of accounts that all show BCC has sat at those addresses for a long period of time and that has never traded.) That means only 7% of the BCC coins are involved in the scam. The main purpose of the BCC is to make it easy for new traders to pay old traders. It will also make it easier for the founders to dump all BCC coins right before it "fails." I am going to guess the founders will "lose" their Bitconnect loans -while on the side in another account selling the BCC coin they have. I was looking at the BCC block chain with the above linked explorer and I am highly suspicious of everything. I think it is mostly for show. The daily volume is fake. It wouldn't surprise me if it was all for show. I also -after publishing these posts spent several days in the Bitcoin blockchain looking at how they move the money. The bitcoin goes in circles through accounts. There are multiple payout accounts that sends daily payout money daily to every Bitconnect bitcoin account. You can go on you tube and watch people "sell there BCC and then transfer the money out." It all happens too fast. Bitcoin transactions take 10 minutes to an hour to process. Yet "selling BCC for bitcoin" is suppose to happen "instantly." If they really sold BCC, it would take 10+ minutes to get the bitcoin. Instead the company just deposits daily bitcoin withdrawls at all addresses ahead of time and then they are -"reinvested" or they are "withdrawn" once a customer sees them -at the appropriate time- on the website. Since these are real bitcoin addresses you can see these with a bitcoin block explorer. (note: i think each customer account actually has several bitcoin address, I think bitconnect switches them every week or two.) That said to keep us confused the for every one real daily interest bitcoin payment, the system makes about 5-10 fake payments which are swept back up into the payout stream as well. -back to your article. You make a legitimate point of theoretical returns, but I don't think there is any real trading going on. To your charilie coin example, I can program a simple bot that tries to bid up the price of your charlie coins 1% every day. The trading bot by buying ever smaller fractions of charlie coins can push the price higher and higher.