Is Bitconnect A Scam? Is Bitconnect a Ponzi Scheme?

Is Bitconnect A Scam? Is Bitconnect a Ponzi Scheme?

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When it comes to a typical investment strategy, most financial gurus aim for a 5% annual return. That is a fair, passive ROI with little risk. Then, you have Day traders and Swing Traders who use technical analysis and other methods to monitor and predict the ebb and flow of the market to increase profits on a more regular basis. Day traders ultimately aiming to achieve a 3% to 5% daily return before selling off for the day. This is in the general stock market which may or may not have nearly as much volatility as the CryptoCurrency market.

In the investment world, there are Trading Bots that enable an experienced trader to establish trading pairs and signals into an algorithm that then automatically buys and sells stock or Crypto for those 3-5% daily yields.

In the world of Cryptocurrency it’s very common for a $1,000 investment to yield 5,000% returns or more over time. The pure volatility of Bitcoin is cause for countless new millionaires into the market as small investments can yield significant returns over time, or consistent profits through daily trading. One company that uses this Bitcoin volatility to not only profit but help fuel the economy of an entire country is Bitconnect.  This very secretive company has engaged the crypto community in multiple ways to entice would-be investors into locking up capital funds for a specific period of time in exchange for daily returns averaging around 1%. The idea is simple, deposit fiat (USD for example) into a Fiat to Crypto exchange such as Coinbase and buy Bitcoin. From there, you register an account with Bitconnect and send your Bitcoin from Coinbase to Bitconnect, then purchase as many Bitconnect Coins as you can afford based on what you deposited. You need at least 1 full Bitconnect Coin to begin lending which is currently around $200 each. Ultimately the cost of entry is based on what is happening with Bitcoin itself. If the price of Bitcoin Goes down, so will the price of Bitconnect Coins or BCC.

Once you have your Bitconnect Coins you can then begin your first Loan. The Loan is a process by which you lock in an investment sum through means of Bitconnect Coins which are then used by the Bitconnect trading bots and in return you are given around 1% per day interest in return. From here, you are supposed to save your interest payments and reinvest every time you reach $10 in accrued interest. The process of reinvesting your compound interest theoretically means being able to turn as little as (the price of 1 BCC token at the time) into $100,000 over time if one were so inclined.

Is Bitconnect A Scam? Is Bitconnect a Ponzi Scheme? is bitconnect a scam Coinbase bitconnect scam bitconnect ponzi scheme

This is my personal Bitconnect Account. I started the account with $300 to test it out a couple months ago, assuming that the entire thing was a big Ponzi scheme and that I may lose it, but, with hope and a plan that it’s somehow legitimate and my ticket to buying Bitcoin down the road in a daily stream of purchases from my interest alone. The time between my opportunities of reinvestment are getting shorter and once I’ve hit $1,000 invested, I’ll make $10 a day in interest. My plan is to get to $2,000 invested and then I’ll likely begin buying $20 a day in Bitcoin with my interest. There are other ways to earn money with Bitconnect such as staking and more but I don’t personally deal with any of those.

Is Bitconnect A Scam or Ponzi Scheme?

The big question. With a company offering an average of 1% or more every day in interest on money invested, it seems way too good to be true, right? There is even an affiliate program that pays the affiliate 7% of their referrals investments with a downline ta’boot. So, why would a company have to do all of this if it were a legit operation?

To be very honest, my personal belief is that Bitconnect is, in fact, a Ponzi scheme to some degree, however, I feel its one that will last many years to come. People all over have started with as little as $100 when BCC was $100 or less, and have built their investments using the compound interest into 6 figures and began cashing out their earnings making a lot of money. I’ve seen videos of people depositing $10k, making $19k in profit over 120 days and getting their capital back. People are winning, with Bitconnect. There are several new copycat wannabes of Bitconnect that are rising and failing fast, taking peoples money and running, such as ControlledFinance. Lately, there are others, including BitPetite etc. Here is the problem I see with the copycat sites. Let’s say Bitconnect is actually a legit operation that takes your investment and invests it using a swing trading bot. You get a great yield and they make a lot of money using your money. Pretty much what every typical fiat bank does today anyway, except they pay you a crappy annual return instead of a daily one. Now, you have competition coming in, and so far, they have fallen as fast as their rise and just causing panic and chaos with those that may have legit operations.

Now, let’s say Bitconnect is in fact a Ponzi Scheme but it’s offsetting their Ponzi risk with the growing value of their Bitconnect coin and other investment elements but, a portion of their revenue model does stem from their multi-level marketing program. This MLM fuel is now hindered by the much less legit operations looking to cash in on the long-term success of Bitconnecct through they lack all of the elements that make Bitconnect what it is, but, because they are new, people jump on them and spread their resources thin thus causing Bitconnect to be affected.

Here are some videos you will find useful:

How To Use Bitconnect

Capital Release

Here is a young guy that has invested $21,000 into Bitconnect already and makes another $10,000 loan.

Summary

Overall, when it comes to investment, you never invest more than you can afford to lose. Pure greed can be cause for as much reward as a risk in these matters so investing everything you own in hopes of gaining a significant amount in return could prove your end. So, just invest what you are comfortable investing. There are a lot of opinions about Bitconnect and its legitimacy but nobody truly knows 100%. I know there are many new developments in their roadmap planned including some stores, a crypto debit card and the like which shows they plan to be around quite a while. If I could afford it, I would just invest $10,010, get my capital release after 120 days and let my profit ride a while with n0 risks.

Look at the chart below that will show you your ROI after investing $10,010

Is Bitconnect A Scam? Is Bitconnect a Ponzi Scheme? is bitconnect a scam Coinbase bitconnect scam bitconnect ponzi scheme

Here is the deal though, to get to $32,660 within your 120 loan period, you have to reinvest your interest every day. This is how compound interest works. However, these smaller daily loans will be held for 299 days, not 120 days, because they are smaller. So, at the end of your 120 day initial loan period, you’ll pull out your $10,000 capital to eliminate all future risk. From here, you will go back down to $22,660 in loans. From this day forward, you should generate about $226 per day in interest for 299 days which if I were you, I’d invest directly into actual Bitcoin. By the time you get your final capital release from your compound interest loans in 299 days, you’ll have made $67,574 in pure profit, plus your $22,660 in original interest/capital making your total return on your $10,000 loan $90.234.

Let’s say you started this 1 year ago, and every day you invested your $226 into Bitcoin…you would be a millionaire today. But it’s not too late to get started. Bitcoin is estimated to be worth $10,000 to $50,000 over the next 1 to 2 years and if you look at its growth thus far, it very likely will be. BitConnect-sheet You can download the Bitconnect Excel Sheet and figure what your profits would be based on your investment.

I’m personally focused on increasing my position with a 2 year plan in mind. Even if Bitconnect were some brilliant Ponzi scheme, I see it lasting several years before even a notion of problems. As you can see in the first video, its a very sustainable platform even without Bitcoin bot trading, but just in case, I’m just increasing my position gently as I can afford it though I’ll never have the funds to drop $10,010 into a loan and follow my own plan. But, this is why the rich get richer and the rest just live off their scraps. 🙂

I hope this article as helpful for you and if you make a LOT of money, Tip some Bitcoin my way: 1PBLBKiT1AiN9KoT66TdXCBppPVsbiuL9s

Thanks and be well.

 

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