Is BitConnect still profitable in a bear market? Yes!
BitConnect has been making me quite a bit of money lately on BitConnect, and I wanted to make sure that the money would keep on rolling in even if Bitcoin's value were to decline.
None of this should be taken as investment advice, but solely as entertainment. Of course, crypto trading is risky, so do your own research on EVERYTHING you come across.
The Setup
I chose to look at June 12th, 2017 through July 11th, 2017 because during that time, interest rates on BitConnect were low compared to recent rates, and Bitcoin was in a sideways/downward trend.
Interest from these days have plenty of low (zero and near-zero) rates:
Results
If you were to start a loan on June 12th, even without a bonus to the interest rate, you would have still made money during this time period. Below is the amount that you would have if you pulled out your daily interest each day with only a $300 initial investment.
Keep in mind if you do this instead of reinvest, you're at risk of the value of Bitcoin going down and ruining your returns. HOWEVER, it can be smart to time when you withdraw, since BitConnect pays in USD value first, then you swap that for BitConnect Coin (BCC) and trade BCC for BTC. So at times it can be more worthwhile to pull out each day and accumulate BTC while it's down, so that when the value goes back up you can do a larger loan.
I think it's smartest to reinvest each day during sideways/downwards trending markets. This keeps you from losing value in bitcoin and adds to your capital for the daily interest payouts. Doing so would result in your capital growing to $377.24.
These numbers are all fairly small, so let's take advantage of the bonus interest that BitConnect pays. Using an initial investment of $1,010, we get a bonus of 0.10% interest each day. I'm keeping the time frame the same, so the base interest rates haven't changed.
Withdrawing each day would have allowed you to accumulate $250.73 over 30 days with a $1,010 investment.
Reinvesting the daily payouts would allow the capital to grow to $1,270.05.
Taking it up a notch, the next tier for bonus interest is at $5,010. This is also where the daily interest payouts start to get really good! Pulling out the daily payouts would get you $1,244.96 during the same time frame that holding that amount of Bitcoin would have lost you $1,000!
Reinvesting would have made you even more! Coming out at $6,300.08 total.
For the final bonus interest tier, we get .25% daily, regardless if the market is doing well or not. As expected, the results are much better than holding Bitcoin during a downward trend.
Withdrawing the daily payouts each day would net you $2,488.69 in total.
And reinvesting would allow the capital to grow to $12,587.70!
Conclusion
BitConnect should be taken advantage of as another investment vehicle in your portfolio. The results above show that losses from simply buying and holding can be overcome by putting some into BitConnect since it will still make you a profit even when the value of Bitcoin is declining.
Thank You for Reading!
If you liked this article and want to join BitConnect, use my referral link and sign up. If you're already a member but aren't in a team, join mine! I wrote a Steemit article on how to do it here.
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