Bitconnect warning! A look at my Bitconnect investment 3 months on - 0 profit!
In this video I show you the in and outs of my Bitconnect investment 3 months in (half way). I compare investing in Bitconnect with holding Bitcoin and the results provide some surprises both good and bad.
Transcript:
Welcome back to CraveThatCoin,
In my last video I looked at the capital release of Bitconnect showing how much value was lost VS holding Bitcoin. This was due to the rapid rise of Bitcoin over the last 6 months. Meaning you will get a lot less BTC from the capital release than you first put in, even though the $ amount is the same.
As it was Trevon’s investment there was no way for me to know what interest payments he made on that loan. Making it impossible to find out if his investment was good or bad in terms of Bitcoin invested VS gained.
So for this video I have analysed my own investment in Bitconnect. I’m going to show you a real example of what you can expect from Bitconnect without referrals. I invested in Bitconnect 3 months ago, so I am currently half way to capital release.
Before I jump into the results keep in mind that I’m from the UK. My Exodus wallet will show the values in £ while Bitconnect will show the values in $. The figures are 99% accurate with some leeway for exchange rates. Somehow I made 1 referral for a total of $8.50 commission which won’t have a big impact on the results. Also keep in mind that I am not a financial advisor and this video is not financial advice, I’m just a guy sharing my experience with Bitconnect. Also I’m proud to say that you won’t find a Bitconnect referral link from me, I have no interest in making money from my viewers should you choose to invest. Bitconnect is and always will be high risk no matter what anyone else says so I refuse to promote it. If you want to support this channel you will find a selection of services which I do recommend in the description below.
Now on to my investment with Bitconnect.
On the 12th of August this year I invested £89.15. This was 0.03 Bitcoin at the time, here is a look at the transaction in Bitconnect and in Exodus.
On the 13th of October I invested a further £169.61 which was a 0.04 Bitcoin deposit. And here is a look at the transaction in Bitconnect and again in Exodus.
This brings my total investment in Bitconnect to £258.76 ($330) for a total of 0.07 Bitcoin. Had I held the 0.07 Bitcoin and not invested, at the time of this video it would be worth £874.33. This is why it’s very important that you focus on the Bitcoin invested VS gained and not just the $ amount when analysing your investment. I recommend watching my Bitconnect capital release video for an idea of how devastating this can be in some cases. In that video I look at Trevon James’s $5010 capital release which would today be worth $34,800.
Now lets go ahead and look at my interest withdrawals. As my investment amount in Bitconnect is reatlively low it takes over a week to surpass the minimums to be able to withdraw my interest. This is great for the purpose of this video as I can easily show you all of my withdrawals over the last 3 months to give you a accurate representation of this platform.
On the 6th October I made my first withdrawal from the accumulated interest. This totalled £18.23 or 0.0053 Bitcoin
On the 26th I withdrew £24.87 or 0.0056 Bitcoin
On the 6th of November I withdrew £29.43 or 0.0053 Bitcoin
On the 16th I withdrew £31.20 or 0.0055 Bitcoin
On the 29th I made my biggest withdrawal to date of £39.83 or 0.0053 Bitcoin
And my latest withdrawal of £14.85 or 0.0013 Bitcoin on the 9th of December.
These are my total withdrawals 3 months into my 6 months investment. A total of £158.41 at the time of withdrawal or 0.0286 Bitcoin. It’s important to note that the Bitcoin is now worth £354.47 so my withdrawals have benefited from the Bitcoin rise in value.
I won’t get my capital release until the end of my investment in 3 months time. So to see where my investment stands right now I have added the capital release based on todays Bitcoin price.
Capital release 1 of £89.15 totals 0.007199 Bitcoin.
Capital release 2 of £169.61 totals 0.013688 Bitcoin
This brings my total investment return 3 months in using the interest + capital to 0.04951639 Bitcoin. This has a value today of £613.74.
As you remember my initial investment in Bitconnect was 0.07 Bitcoin and I’ve made back 0.04951639 so far. So I have 0.02048361 less Bitcoin than before my investment 3 months ago. This is 29% less Bitcoin that I invested. If I had simply held the 0.07 Bitcoin it would now be worth £867.62 so compared to holding the Bitcoin my investment is at -£253.88.
Before I analogised the figures in detail I knew that this would be the case. Which is why i said the Bitcoin increase in value is a risk to investing with Bitconnect. But I also made back more BTC than I expected to and with another 3 months of my investment I believe I will end up with more Bitcoin than the 0.07 invested. If you ask me was it worth it over simply holding Bitcoin so far I would say no as I have taken risk and 3 months in I have not made even £1 of real profit. if I had held Bitcoin I would be better off at this stage and would have full control over the Bitcoin to either invest it in other coins or even invest in ICOs for a much greater potential return.
During my investment on the 25th October the Bitcoin Gold hard fork happened. That means I missed out on 0.07 Bitcoin Gold which has a current value of £24.74. That brings the total loss from my Bitconnect investment so far to -£278.62. If I invested before the Bitcoin Cash fork as many people have the loss would be much greater. as 0.07 Bitcoin Cash is currently worth £212.96. This is important to keep in mind as there is more forks planned for the near future. Who knows how valuable some of these coins could be. When you invest in Bitconnect during a fork you are giving them the free hard forked coins. Imagine how much money they made from Bitcoin Cash with their users Bitcoin deposits.
If you invest in Bitconnect your money is tied up. You have no control over it for 6 months VS holding Bitcoin of which you would benefit from free hard forked coins such as Bitcoin Cash. You would also have the freedom to invest in and out of alt coins and invest in ICOs.
To sum up my thoughts on this video. My investment in Bitconnect in another 3 months time will likely total some kind of return. But 3 months in to my investment i am down £278.62 over simply holding Bitcoin. I’ve given up control of my Bitcoin invested, taken a lot of risk and time in withdrawing and recording my payouts. The reality is that based on all of the hype sorounding this platform most would expect any investment in Bitconnect to bring some return in 3 months. In this video I have shown a real example of a 3 month Bitconnect investment sitting at a loss compared with holding Bitcoin. I think the results of this video will shock some people who are simply looking at the $ amount invested VS returned and not looking at the Bitcoin value and benefits that come from holding it.
It’s certainly true that no one could have predicted the rapid rise of Bitcoin this year. That is completely true but it doesn’t change the facts that Bitconnect has been a bad investment 3 months in. Half way through my investment and not a single £ in profit compared to if I held Bitcoin.
Some people have commented on my last video saying they use Bitconnect to diversify which is completely understandable. I just worry about the many people who go all in with Bitconnect after watching so many of the hype videos out there.
If you invest in Bitconnect when Bitcoin is at a all time high and the price crashes then you may see a greater return of Bitcoin than you put in. This was actually the reason why I dedicated to invest in Bitconnect, I expected the price of Bitcoin to crash but it continued to rise since my investment. With that said a crash in the Bitcoin price puts Bitconnect in unseen territory which is why I only invested a small amount, we have not seen how and if they would survive if the Bitcoin price crashed 30, 40%. This would force them to pay out more BTC for every payment. where as currently as shown with my investment they are able to pay out less BTC overtime due to the huge increase in Bitcoin price. This may be why Bitconnect has effortlessly been able to survive so far.
The power of Bitconnect could lie in using it as a hedge against a falling Bitcoin price. As long as Bitconnect is as stable as people say it is. And it is able to maintain similar interest rates it could be a good investment in that scenario. As the Bitcoin price is correcting at the time of this video it may bode well for my investment. Over the next 3 months I should get a higher amount of Bitcoin than the first 3 months.
I hope you found this video useful and please remember that I am not trying to put you off Bitconnect. I am simply showing you a side of the investment that many of the big promoters won’t. They will happily take your referal commission and only say positive things about the platform.
I will certainly follow up with another video when my Bitconnect investment comes to a end in 3 months.