I invested 10k in Bitconnect back in July. The way I played it was to transfer the “earnings” back into BTC every couple of days and send it to a wallet outside of Bitconnect.
I also got the payments like clockwork and at the 120 day mark (which happened in October) I received the initial investment back. I immediately put the money into BTC and said farewell to Bitconnect. I made $14k profit in Bitconnect. Here are some observations of my own:
I’m lucky to have pulled everything out just before that parabolic rise of BTC in November. That worked in my favor, had that not happened I’d have been better off putting the money straight into BTC.
This is the big one. Bitconnect WILL shut down abruptly, some day. Maybe tomorrow or maybe a year from now. But anyone with money in their system will lose it. It isn’t mathematically sustainable for them to give that kind of money away. Their entire system is designed to keep your BTC in their system. You get lending payments, receive payment in THEIR coin, and can make additional coin by staking in their wallet. What happens in their coin were artificially devalued to nothing? Anyone holding their coin has nothing and they keep your BTC.
So as soon as they have more people pulling money out than are keeping it in, they will disappear. My advice is to take your money out periodically and not look back. Just hope you aren’t the one left holding the hot potato!
I completely agree with everything you just mentioned. My thought process is that now that I have made my initial investment back, I am treating the lended amount as if it is not mine and will crash with the program.
However, I would love to know your thoughts. I was reading about this Gunbot trading bot that you can buy and set up on Bittrex. I do not know much about the trading bots and must admit that I am still an amateur invester as far as reading charts and trend lines. However, I was reading a good amount of reviews stating that people can get anywhere from 1-3% daily when they set up their bot correctly.
Is it at all possible that Bitconnect is using something similar to this and set up their platform based off this type of trading bot? If not, have you had any experience with this type of trading?
I don't know enough about those bots to really have an opinion on them. However, when it comes to Bitconnect: I've done a lot of thinking on their model. And I've watched them very closer over a 4 month period.
The thing that stands out to me, as an indicator that they are not actually using a bot is their % payouts, which are supposed to be based on their "volatility software." When I began getting worried about my investment was when I noticed a clearly defined fluctuation of their software's performance based on the DAY. What I mean is that every day on midnight their software performance is set fresh. It will go from 1.75 to 0.05 for example, exactly at midnight. If it were just passive software running, why would it fluctuate like this? Instead, I'd expect to see it have gradual fluctuations throughout the day and night.
I may look into that bot you're speaking of. I believe it's possible that with the right software you can make some substantial gains. It just doesn't appear that way with Bitconnect unfortunately.
Thank you very much. This was very inciteful.
It makes me wonder if I could create something very similar to bitconnect except with much more transparency, where people lend me a token and I show them the trading bot and show them exactly what was made that day and what the payout is. If it takes a loss that day, then its a 0% payout. If it is 3% then the person lending would benefit off that to an extent that allows the company to continue to run while making profit.
I am going to look into it more as well. I believe I would much rather have a trading bot working for me rather than putting $10,000 to some uknown entity that looks and acts like a ponzi scheme.
Agreed! I would rather do that as well. Good luck to you!