Bitconect

How is Bitconnect Sustainable? How is Bitconnect Not a Ponzi?: The End All Be All Explanation for Newbies
What you are about to read is the end-all be-all explanation as to how Bitconnect is sustainable and not a Ponzi. I know that you are all tired of new people coming into the group day after day asking the same questions over and over and I hope that this will serve to answer the question once and for all and that the moderators of this group will pin this permanently to the wall for all to see.

In order to respond appropriately to these questions, one must understand that the asker is asking this based on several misconceptions. Most people lump Bitconnect in with the likes of Control Finance, Bitpetite, Coinreum, etc. These are programs where people lend their bitcoin to a company who feeds them a story about how they are able to multiply their funds and give them a nice return based on how the company invests the money. Some claim to be trading, some claim to be investing in certain technologies, some claim to be mining, etc. The company agrees to repay the investor in the same currency that was borrowed. Most end up shutting down their operation abruptly and running away with their investor's money. Bitconnect does not operate in this fashion. Unlike all of these programs, Bitconnect has a coin, an actual Crypto-currency. To date, there hasn’t been a single lending program that has come to market (beyond the ICO stage) with a coin and a working blockchain that has failed, exited, or scammed and run off with people’s money.

In order to explain the sustainability of Bitconnect, one must be able to resolve several misconceptions about how it works.
Misconception #1: We lend Bitcoin to Bitconnect.
This is false. We do not lend Bitcoin to Bitconnect. We buy Bitconnect Tokens using Bitcoin in order to make a loan on the platform. These tokens are purchased on an exchange. The person on the other end of the trade can be any member of the Bitconnect community or Bitconnect itself. What this means is that Bitcoin doesn’t necessarily go to Bitconnect every time BCC tokens are purchased.

Misconception #2: We are paid out in Bitcoin.

This is false. All payments (including referral bonuses) coming from Bitconnect are made using their own BCC tokens, not Bitcoin. If a lender wishes to obtain Bitcoin, he/she must exchange those tokens for Bitcoin on an exchange. The person on the other side of the trade offering their Bitcoin in exchange for BCC tokens are often other members of the Bitconnect community wishing to obtain Bitconnect coins for the purpose of making a loan. A person wishing to exit the platform with Bitcoin is only limited by his/her ability to exchange his/her BCC tokens for Bitcoin on any of the exchanges where BCC is traded. Bitconnect is not responsible for providing lenders with Bitcoin. They are only responsible for satisfying loans with their own BCC tokens.

Here is the data on Bitconnect’s BCC token supply according to Coin Market Cap:
Circulating Supply: 2,138,092 BCC
Total Supply: 8,392,580 BCC
Max Supply: 28,000,000 BCC

The circulating supply includes all tokens not being held by Bitconnect. The total supply includes all tokens that have been created to date. The max supply includes all tokens that will ever exist. When a person makes a loan on the platform, they are making a loan for a certain dollar amount worth of BCC tokens, not Bitcoin. When they are paid back, they are paid back a certain dollar amount worth of BCC tokens, not Bitcoin. The value of the coin plays a huge role in determining how many tokens are needed to make a loan in the beginning and how many tokens are required to be paid back at the end. For example, if a person wants to make a 100 dollar loan and a BCC token is worth $1 at that time, he will need 100 BCC tokens to make a $100 loan. However, if by the end of the loan period, the value of the BCC token has risen to $10, he will be paid back only 10 tokens at the time of his capital release. Due to the fact that the BCC token is in high demand, the token value continues to rise and those who made a loan earlier in the year are often paid back less tokens than what they originally lent, albeit with the same dollar value.

Why is this important?
This is important because the concern is that Bitconnect will run out of funds to pay their investors. However, most do not know that the payments are made using a coin that Bitconnect controls and of which Bitconnect seemingly has an endless supply. The reason why it seems as if they have an endless supply of coins which they can pay out is because whatever amount of coins they pay out are sold and promptly returned to Bitconnect for the purpose of making a new loan. This is not a coin that most people hold for the long term benefits. Bitconnect does not run out of their own coin. Hence, they do not run out of money to pay their investors.

Recall that the amount of BCC tokens in circulation according to CMC is 2,138,092 BCC. That means that they still have 6,254,488 coins sitting in wallets which they can use to pay their investors. Currently, the value of a BCC token is $280.82. If we multiply $280.82 by the total supply of 8,392,580 BCC, we get $2,356,804,315.60. That is how much Bitconnect could pay out at one time if necessary. Mind you, it is highly unlikely that any investor in Bitconnect will try and cash out over 2 Billion dollars at one time on the platform. Yet, if this were to occur, then the total supply of coins would be enough to make them whole. Recall, the max supply of Bitconnect coins is 28 million. Let me also remind you that once Bitconnect pays an investor out in their own coin, they have satisfied their end of the deal. The investor, if he so chooses, must on his own trade those coins for Bitcoin or for any other coin.
This completely refutes the allegation that Bitconnect takes new money to pay old members, which is the definition of a Ponzi. Bitconnect only conducts loan transactions using their own BCC token. Bitcoin is only used to purchase BCC tokens. That is where Bitcoin’s involvement ends. Bitconnect pays out in their own coin which is traded for other coins such as Bitcoin, Ethereum, Tether, etc. Bitconnect is not responsible for anything beyond paying out a dollar amount worth of their own BCC token.

Could Bitconnect Fail?
Of course, Bitconnect can fail just like any business can fail. What could cause Bitconnect to fail? Bitconnect could fail…
1). If users stop using the platform. Just like any business, if people stop using the service, there would be no reason to stay in business.
2). If the value of the token drops to a level where all available tokens wouldn’t be enough to pay investors. For example, if the token value drops to $1 and there are 28 million tokens and more than 28 million dollars worth of their tokens need to be paid at once, Bitconnect could fail. How likely is this?
3). If Bitcoin is no longer in existence, or Bitcoin