I present my research into the truth if Bitconnect is a scam or a legitimate opportunity. The world is changing so rapidly today. For us today is important to try and learn as much as possible about new technology and keep up or we will get left behind.
The question being asked by some is this sounds too good to be true. If somebody had the ability to trade in such a way why would they allow you to benefit from that? Well, I know I would in order to raise money. The same way Apple or Google went public to raise money. Today money is raised in new ways like ICOs.
There is no Bitconnect trading bot?
Since there is not too much information on the bot itself many people say that it is a scam. And since there are multiple layers to the referral program they call it a pyramid scam.
Let’s pretend that do not have a trading bot for a second (which I believe they do and that 0.8% a day is possible) but let’s pretend they don’t have a trading program. The market cap of BitConnect is $394 million as of this morning. $394 million with a M or how much FaceBook was worth when it went public. If it were a scam don’t you think they would had already run away!
When the company created their BitConnect Coin (BCC) they performed a pre-mine to to generate at least 4.8 million coins (think stock in an IPO). Then they have adopted a Proof of Stake / Proof of Work system. In cryptocurrencies Proof of Stake means that you’re rewarded interest in exchange for not selling your coins. Here is the interest you are rewarded:
In the past year from August 2016 to August 2017 they have accumulated $102,187,320 in interest alone from their Proof of Stake. $100 million.
There holding of 4.8 million coins has appreciated from pennies per coin to +$60.
- Started at, 4.8 million coins x $0.145625 = $690,000
- Today, 4.8 million coins x $63 = $302,400,000
Interest from Proof of Stake alone on their holdings alone would cover all payments today. But I expect BitConnect Coin trades into the triple digits within the next six months easily.
That does not mean there is not a trading bot program though. It is possible for a good auto trading software to get good returns like this on a very volatile currency like Bitcoin. I imagine these young Asians behind BitConnect are better programmers than me. I imagine they are using their bot to generate returns and using their profits for further proof of stake of their coins.
BCC is also a store of value. The more investors who lend money to BitConnect the greater the value. There are only 6,267,997 BCC in supply.
It is quite possible that BitConnect is perfectly legit and many made judgements too earlier without really doing their own research.
I truly hope this turns out to be a legitimate venture and does not place any type of black mark on cryptocurrencies. That would be bad. The average deposit into BitConnect is around $220. Be careful and never risk more money than you can afford to lose in any investment.
Compounding interest at 26% a month is worth it for me to risk some capital and give it a try. I will keep you updated on my progress and findings.
#1) How to Earn Bitcoin with BitConnect's Interest Payouts
https://goo.gl/Ehseiu
#2) Make your first $100 loan Bitcoin to BitConnect
https://goo.gl/Kk2QWM
#3) +9.2% Gain my First 7 Days into BitConnect
https://goo.gl/WRZCzy