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RE: Bitconnect: Ponzi Scam or Great Investment Opportunity? [Token Investigations pt 41/50]
They guarantee 0.25% a day over and above ‘volatility interest’ if you invest over $10010.
They guarantee 0.25% a day over and above ‘volatility interest’ if you invest over $10010.
That is true but they only pay out a % of the daily interest earned to account for the bonus interest. There is way more to it; BCC grew by 3700% in 2017; if you bought into their ICO you would have done well. Crypto-currency changes the game. Bitcoin goes up 1000% in a year and no one is screaming ponzi? Tron shot up %500 percent in a week and no one is screaming its a ponzi. Atleast BCC has some production behind their model other than pure speculation.
It grew because they own it all due to premine and can manipulate the price. The coin serves no real world purpose apart from enabling the operators to control the payouts completely. If they really were trading in bitcoin using a bit, why do they need the token? It would make more sense to accept payment and to pay out in btc!
It does make sense; In a ponzi scheme there is an imbalance between inflow vs outflow of capital. As soon as outflow is > then inflow then it collapses. Bitconnect premined their coin to keep a massive reserve fund. In addition inflow and outflow is balanced by having bcc and Btc. You can only buy Bcc if there are sellers and you can only sell bcc if there is buyers. Thats why I said crypto's change the game. In classic ponzies you had no way to balance inflow vs outflow. Bitconnect holds a lot of BTC and BCC; which would allow them to keep the balance. People don't understand that in order for there to be balance there must be BTC +BCC; ying/yang.
I agree it’s not a classic ponzi. The addition of BCC means that they have far more control as they pay out in BCC and they control the price of this relative to bitcoin. It will still collapse but that collapse could be some way off.
Although the recent ICO makes me think it could be sooner. Bitconnect certainly doesn’t need new funds for development so what is the ICO for?
I think they are in trouble to some degree but not because the system is a ponzi. I think Bitcoin fees are way to high. They are creating a low cost coin to minimize cost. Also there is a barrier to entry which is converting fiat to crypto. The ICO and bitconnect X is to address those two issues. In addition the next issue is when trading bots become common place and are built into your crypto wallets it makes bitconnect redundant. However if you see in their roadmap they are upgrading their algorithm so I think they are addressing the 3 biggest issues they face. They pay out in USD not BCC; they are holding an appreciating asset and paying out in a depreciating asset; that is what you could consider "the scam". USD is losing value will BTC is gaining value at 1000% per year. That is why I feel it is not a "ponzi scam" and is rather genius. What do you think the future value of the BTC is going to be? and what do you think they paid for it lol.
I should mention crypto-space is relatively new and everything is really being driven by speculation. I have seen coins shoot up 100% in a day but yet everyone yells that bitconnect is the scam. Some coins have increased in value by over 1000% a year without any real world use yet. I think whether you invest in bitcoin or bitconnect you should only invest what you can afford to lose.
I would like to add Brock Pierce behind block one says "90% of start ups fail" meaning most of these coins probably will not make it in the long run for one reason or another. Does that mean they are all scams?