Bitconnect lending
With Bitconnect you deal with 2 currency pairs.
BCC/BTC and BCC/BCC $
BCC/BCC $ is needed in order to convert the BCC that you have into lending dollars. These lending dollars can not be converted into anything else but back into BCC. The BCC $ in the BCC/BCC $ pair is a lending dollar, only meant for internal lending.
Once you lent the lending dollars, they make about 1% interest every day.
Now here is the problem when you look at the Bitconnect chart, how the BCC/BCC $ at least doubles every month.
This means, when you lend 10.010 lending dollars, they lose in value by 50% every month. When you get them back after 120 days, their value will have decreased like that:
10.000
5.000
2.500
1.250
625
To the 625 one can add the 30% interest 4 times, which loses 50% in value every month accordingly.
+3.000
+1500
+750
+375
That adds up to 6.250 in fiat $ one will get back for the 10.010 fiat $ that were invested.
Your original money lent is paid back in USD so you are not losing any value of the original investment. I take my daily interest payments and put it into BCC. In this scenario I buy a little BCC the whole term of the loan. If it goes up great and if it goes down it lowers my risk of how much I lose. If the value of BTC goes down I have the option of using my BCC to buy into BTC. And I can transfer the BTC to an external wallet. I started my plan with @ $534 worth of Bitcoin I had in my external wallet. I put 500 into the lending platform and the rest into BCC. I will see in 299 days just how smart or dumb I am. At least in my scenario I chose the path.
The original money which was converted into BTC, then into BCC and from there into lending dollars, will appear in the lending wallet after the 299 days, in your example.
From this lending wallet the dollars can only be converted into BCC. For the BCC/$ price. Same for the interest you see added to your lending wallet.
Once BCC is lent, one has lending dollars, not USD !
You can check it over the time span of about 20 days even. Lets say your interest from 1.000 $ gave you 10 $ on 20. August and you converted that into BCC. Lets say BCC/ $ is at 100 $ today. That gives you 0.1 BCC for the 10 $ in the lending wallet.
20 days later the BCC/$ price will be at 200 $. That will only give 0.05 BCC for 10 $ which appear in the lending wallet.
You are correct in that scenario. What I am doing is taking the money out of the Lending Wallet and buying BCC everyday. The money will have to be converted at some point anyway to send it to an external wallet. So the $10 worth of BCC i just purchased with my interest will be worth $20 next week if the BCC price increases. If the price for BCC decides to crash I can convert to BTC or BTC decides to crash I can buy BTC with my BCC for investment purposes.
You need to look at the BCC/BTC when you have BCC. Fortunately the BCC/BTC price rises regularly. In other words, as it is currently, one will make more gains by hodling BCC over hodling BTC.
The 10.010 USD i invested 1 month ago when BTC /$ was at 50 will be worth 500 USD when i see them again in my lending wallet with a BCC/$ price of 800 in 3 months.
What do you do with the interest payments that you get daily?
Until a few days ago, before i realized that inflation, i compounded 50% of the interest payments.
Now i transfer everything into BCC.
Even if i compounded 100% of the payments, that would just increase the lent dollars to 134 % in 30 days, given 1% interest per day. But its value would be cut by 50%. Which is 67 % then instead of 134%
All because the BCC/$ price doubles every month.
BCC/BCT will rise and BCT/USD will rise. If i do not find anything better i will let the BCC sit there for now. And see what SegWit2x might bring in November. Probably i convert the BCC to BCT and into fiat in November.
Good luck to you. Thanks