Bitconnect - Ponzi Scheme (YES/NO/MAYBE)?
After numerous days of research and discussions with friends and colleagues, I have decided to jump in and invest in Bitconnect. Of course, one of the most asked question was "is Bitconnect legit?" Well I guess I'll be the first honest person to say "I DON'T KNOW." I don't know any more than you do or any others whom have written numerous blogs about how fake it or all the videos on youtube advising new investors to stay away. However, one thing I do know is before anyone jumps into any investment there are some important facts to consider and some questions worth asking oneself. "Am I willing to take the risk?" , "Can I afford to lose this money and if I do would I be alright?"
The way I see it is if you are willing to transfer your currency to crypto you are already taking a major risk. I hear people say this plenty of times. "Bitcoin is backed by nothing. It's a worthless coin." Well guess what? So is bitcoin and all alt coins. They are all worthless. All currencies are worthless. It is us who gives it a value hence the term "Supply and demand."
There isn't really anything written in stone that says Bitcoin exists tonight and when we wake up in the morning it will still be there. One must make a choice for themselves. Do I believe in what the coin stands for? Do I believe in the decentralized exchange system? Do I wish to be a part of it?
The third biggest theory about Bitconnect is that it is a "Ponzi Scheme." - Is it? Well it is design like a pyramid scheme I'll say the least. I don't believe people should continue to make money off someone else after they make their first initial investments. That model allows people to take advantage of others. There are ads everywhere about Bitconnect investments and people all over youtube asking new investors to join the platform using their referral links. It is chaotic. Some even call it "disgusting" and "distasteful." I, however, understand it is just business. At the end of the day every companies do some sort of marketing. It just happens this one is giving it a bad reputation. I am almost certain it costs the company less to pay referral bonus than paying for advertisements. I also don't blame those who are using it to grow their capital gain. If you are putting the effort in, go out to get people to join in, you should be rewarded for your hard-work.
Bitconnect, if you really think about it is a genius design to make it's owners rich. It is a private exchange where the company owns majority of the coins. They take your Bitcoin, which is highly volatile, in exchange for their worthless coin; charges you an exchange fee but in return they pay you back in the currency that is deflating. Yes you do make a decent profit after the capital release but the company makes way much more. If my logic stands true, they are making enough money to keep going for a while.
Does that mean it will be going for a very long time NICK?, I don't know. No one knows if Bitconnect is a true ponzi scheme or if it will crash tomorrow and burn anymore than we know a higher power really exists. It is just a matter of opinion and faith. I believe in what Bitcoin stands for. Therefore, I somewhat believe in Bitconnect but that's just my perspective. What's yours?