I have a small position from a couple of months ago when I wanted to look into it. As a pure investment it is unsustainable I completely agree. There is a post somewhere (which I can’t find now) that shows that is you take out a $10,100 loan and you reinvest all earnings and interest rate remains around 1% daily, you would have around a trillion dollars within 5 years!

However, I don’t think it’s a pure ponzi. I think they have been very clever inserting the bitconnect token into the mix. It does nothing, serves no obvious purpose yet you have to buy it to invest.

You send them bitcoin. You have to convert this to bitconnect tokens to loan, yet they convert this to a dollar amount (and pay interest against this dollar amount), however their mythical trading bot is supposedly making profits from trading bitcoin!!

The bitconnect token is there to allow them to completely control the market. The token had a massive premine which they retain so they control the supply side of the market, in effect controlling the price.

I agree this will come crashing down at some point, taking a lot of people with it but I think it still has some time to run yet.