Opinion : BitConnect is a scam

Bitconnect is an interesting concept - it is a platform where people can invest their cryptocurrencies and earn interest on investment. There is nothing wrong with this idea, it could work on paper. However, if you take a closer look at what is really happening in this particular case, you can see that there are big red flags everywhere.

First red flag - Ridiculous interest rate


Bitconnect "reliable" interest rate is about 3-5% per week. Think about it for one second, Bitconnect can get you in one week what the most prestigious investment fund struggle to do in a year. Keep in mind that if something is too good to be true, it usually is. Here is what BitConnect promises you:

Second red flag - We do not know how it works

What is the technique used by BitConnect to get those ridiculous interest rates? Well, they say they are using bot trading. Fair enough, bot trading is far from a revolutionnary technique and it is often used in finance. However, bot trading has never been close to 5% of interest rate a year.
Furthermore, it is really worrying that Bitconnect won't reveal any algorithmic code about their bot. Even worse - there is no evidence of bot trading, it is impossible to know where your money is going...

Third red flag - There is no Bitconnect team

Only a handful people have the skills to create profitable trading bots. It is reasonnable to ask yourself who is behind the scenes creating BitConnect's incredible bots. The answer is simple: we do not know. This means that the founder of BitConnect could cash out at any moment all the investment and run away without any legal repercussions.

How I think it really works

There is no proof that BitConnect is a scam, but there is also no proof that their trading bots even exist. This is why I think BitConnect is probably a "Ponzi Scheme" - it consists of paying the old investors with the funds given by new investors. As long as they attract more and more new investors, they will be able to pay the interest rates of the old investors. But as soon as no new investors join the party, the whole system breaks down... What do you think about BitConnect? Let me know in the comments

Comments

  1. Let me know what you think about BitConnect: is it legit or is it a scam? Do you have any proof that the bots actually do their jobs?

    ReplyDelete
    Replies
    1. http://pricemycoin.com/currencies/bitconnect/

      Delete
    2. There is no proof the bots actually do anything, this is just the chart of the price of BitConnect...

      Delete
  2. I currently have money invested in BitConnect and earn daily. Some days are better than others so I average over 1% return daily. In my opinion and since I am an investor it probably is more thank an opinion it is legit. So far I have earned about $100 in interest in less than 2 weeks. I was able to transfer the funds to another account elsewhere so the money was real.

    ReplyDelete

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