Is Bitconnect a scam?
Hello steemians,
Today i want to warn you about Bitconnect Pyramid scheme scam.
I will explain you why you should not invest and lend money on Bitconnect Platform and avoid to buy BCC token.
. Bitconnect promise you 1% average rate lending rate because a bot trade your liquidity on crypto market and you get profit from this trading activity.
1/ No bot on earth win 1% in average per day and Bitconnect website certainly don't proove or explain you how they achieve this performance.
Nowadays they is more than 70 hedges funds investing in crypto space, don't you think tey have the best trading algorythm available aswell?
Competition is not so low that Bitconnect bot arrive to exploit so greatly other hedge funds bots/ traders.
Do Biconnect invented a super bot beating all the competition ? NO or proove it.
Why Bitconnect bot don't destroy stock market aswell?
2/ Bitconnect marketcap has increased from 700k$ to 1.4 billions $ === x2000 . Is it sustainable? NO
To lend you have to buy BCC at 190$ now and lock your money for 3 months minimum.
When you lend for severals months you are betting on the fact the price of BCC will not decrease more than what you expect to win with lending interest.
Have you seen most of altcoins has been dumped for -70/ -80% in $ valu last 4 months?
Even if Bitconnect was not a scam after a x2000 increase in 10 months you should expect a sharp retracement.
3/ where could we see an audit of the trading bot activity to proove the 1%/ day is feasible? NO WHERE
Could we have an audit of available funds? NO
Why? you know why !
4/ Pryramid Scheme Referral system motivate users to hype the platform and attract fresh blood to feed them.
You can find a ton of videos on internet and blog post on steemit hyping BCC platform, showing you how much they become rich each day with this platform.
Have you noticed thay have 2 things in common:
-They started to invest early in the scam so they already have exited the vast majority of their profit, most of the money they win now is coming from the pyramid scheme refferal system!
-They show you they continue to invest in the platform to persuade you to do the same.
Have you realized they usually invest only 1/10 of their total winning (10% risk) whereas the new investor will take 100% risk for the next 3 months minimum (a 10k$ lending is locked for 3 months).
If they were so sure the platform will continue to perform as weel as before why don't they reinvest 100% of winnings?
Maybe they don't like to win money?
They know it is a scam and ride it to make the maximum money over news users , they are all BIG SCAMMERS! Prison is waiting for you guys!
5/ When more and more people will be able to withdraw money and adoption rate with new deposit will not surpass the amount of withdrawals.
As there is no bot printing 1% profit per day the pyramid scheme will be revealed , some people will start not getting back their lending initial deposit, lenders will not win 1% per day anymore, then the information will circulate on internet, less and less people will deposit money and lend, finally every lender will be stuck and they will never see their money again.
Bitconnect website could also go offline and founders fly away with hundred millions of $.
Thousand of investors will be ruined!
6/ 1% interest per day egal more than x6 every year.
Bitconnect Marketcap will probably go to 2 billions $ at the end of 2017.
Let say 50% of Bcc tokens are used in lending, i don't have the exact number if somebody do, let me know.
1 billions $ in lending x6 => 2nd year = 6 billions, 3nd year 30 billions, 4nd years 180 billions, 5nd year more than 1 trillions $.
Yes it is a very simplistic estimation but do you see how unsustainable the 1% per day is?
Do you really expect Bitconnect bot to win 1 trillions $ next 5 years? i am not talking about next 10 or 20 years as numbers become totally ridiculous.
Are we all gonna be rich with dollars raining from the sky? NO
So don't be the fool buying BCC token and it is our responsability to expose these scammers.
We should not let them act so easily on steemit at least.
I will start to downvote as much as post oo videos hyping this scam on steemit.
just so you know @damarth
They have since stopped paying on referrals past the 7th level.
Bitcoin has gone from pennies to be worth nearly $6000 US Dollars, certainly a bigger jump than Bitconnect's $700K to $1.4 Billion Market cap jump.
Some don't like to hear it but Steemit itself requires a sort of pyramid in order to stay functioning. Look at yourself for example, you need followers to upvote your post, and the more followers your followers have, the more up votes they get the more their votes are worth when they up vote you. Each steemit member who wishes to make money posting must be at the top of their pyramid with followers below them.
Also I invested in Bitconnect and have since received 100% of my initial Bitcoin investment. What I put into Bitconnect in Bitcoin I have now received all of it IN BITCOIN 100%. My daily payouts from now until when this thing dies will ALL BE PROFIT. As of now, I stand at a 1% ROI and counting. Try putting that in a Bank account.
ps, there are few other inaccuracies in your article about Bitconnect. Let me know if you want to know where you are wrong, if it is you care to know or just like putting mis-information out there.
I would argue that many of the Cryptocoins and Tokens are a scam, since many of them have some whitepaper and story what they want to deliver as a service, but the service is not delivered. Ok, I know the different way of looking at coins and tokens, that these can have value even without any service or product, and that is in essence true. Any currency has value as long as we have trust in the currency, and in the end it is the trust that needs to be build. One can then argue that when the trust is increased, the value of the coin/token against others becomes higher, especially when the amount of the coins/tokens is limited.
For Steem, about 40.000 new Steem is added to the reward pool daily. Assuming we have to split that with 40.000 active users writing each 1 post per day (purely hypothetical), each post get an average of 1 Steem. Since we see posts in Trending channel each day with hundreds of dollars/Steem, and we see quite a few comments with 10s of dollars (Steem), it is therefore for sure that many posts will get less than the 1$. Now, if we increase the number of active users and/or the amount of posts per active users with a factor of 10, we suddenly have only 0,1 Steem available as an average for all posts. When number of active users increases, you could think the value of Steem will also increase somehow, however, that may not be the case since currency price is not at all related to the number of active users. It would be more related to the amount of Steem purchased at exchanges, the number of power downs happening and so on. So yes, your statement Steem/Steemit itself requires a pyramid is absolutely true!
Pyramid scheme has to work in the first place to attract credulous and greedy investors.
Don't you think Madoff investors won money at the beginning to acquire more and more investors and pump the scam?
The fact you got back your initial investment doesn't imply it will be the case forever. You are only an early adopter of a scam, lucky enought to be out winning money before it disappear in ash.
If you read my post you probably have understood when adoption rate (deposit amount) will fall under the numbers of withdrawals amount required you will not see your initial investment anymore.
You try to proove me the success of Bitconnect is sustainable because Bitcoin has increased so much last 7 years. Is this argument valuable for every shitcoins in crypto space or only BCC?
I am sure you know Bitconnect and bitcoin have not lot of fundamentals in common. Do we hold Bitcoin to win 1% interest per day?
Your investment on bitconnect is only based on the belief a bot can earn 1% a day in average forever.
Proove me it exist somewhere, send me audit of trading transactions i will be glad to admit i am wrong.
I can't provide you something I don't own or control. You ever heard of any of the Big Trading companies giving out their algo's on their trading. You know that trading bots exist right? For example Forex Trading Bots??
2ndly, AI ( another word for algo's / bots) can beat humans at Chess, can beat humans at Go, and NOW can beat humans at playing No Limit Texas Hold'em , and you still think that a human can beat a bot at trading anything??
3rdly, no where absolutely no where does Bitconnect Guarantee 1% daily return. Show me where they guarantee this and I will eat my words. They might say that is the AVERAGE but they never guarantee it. And that return is based on Bitcoin Price Volatility, where somedays there is no Daily Return or Payout due to Bitcoin Price going sideways, and somedays when price moves substantially, the daily rate can be higher.
And actually Bitcoin has had a much higher daily return rate than Bitconnect in the past year my friend.
4th point. Had I simply bought Bitconnect coins when I first started, I would currently have 4 X my money.
1/blockchain space is often open source. You took steemit as exemple before but in contrary to Bitconnect with steemit you can verify the code distributing curration and author rewards.
https://steemdb.com/
Code is open source and you can track every actions of steemit users . Why Bitconnect don't use the best argument possible to attract adoption and proove us their bots are so profitable. Give us acces to 1 single day of trading transactions record? It doesn't disclose trading secret at all.
2/ yes i know bots can beat humans, they don't only compete against humans but also versus other very competitive bots. No bot can insure you in advance 1% gain in average forever simply because we can't preddict the amount of volatility and volume in the market required to perform.
3/ i remember dozen of days with very low volatily and liquidity everywhere on crypto market but surprisingly BCC still had 1%+ interest in such days wich is impossible. On stock market this year quantum bot won 0.7% vs 9%+ for humans traders because of a lack of volatility and volume. Well apparently it is not a problem to gain 5 000 000$ / day for bitconnect even in a case of very quiet day, even the best bots have a loosing day or weeks, Bitconnect never loose , how amazing is that?
4/ yes i remember a bunch of coins where i could won a fortune that doesn't exist anymore. Do you know Uro ? Util ? All the scams that disapeared last few years? Here a snapshot of the market in 2014 , do you recognize a lot of these coins in top 50 now?
https://coinmarketcap.com/historical/20140720/
This still proves nothing of Bitconnect being a scam or legit, yet it does show that it is quite possible to make great returns even when price is stagnant.
We have no idea who started Bitcoin, and yet here it is going up in price. No one officially backs Bitcoin, and yet it is worth more than 3x the price of Gold. Bitcoin is not the Bitcoin that Satoshi N. started and has even spawned branches from the original, are those scams too? Bitcoin could fail, but yet it hasn't. Should I call Bitcoin a scam too?
I say call Bitconnect a scam when it truly Scams people out of there money. If you don't understand it or don't agree with it is one thing but to spread misinformation is quite another.
Maybe Bitconnect fails and people lose their money, but Maybe it doesn't. Be smart and diligent, yes. Do your homework, yes. Invest only what you can afford to lose, yes. Low risk, low reward. High Risk, High reward.
We can talk about it all day long but it doesn't change the fact , there is no proof of trading bot activity, it is impossible to trade without a daily or weekly loss.
No wallet adress available to track down funds, no known deal with any exchanges to trade hundred of millions $ per day. not a single proof of trading activity exist.
Bitconnect goes clearly against SEC rules , website has a true risk to be shutting down by authority.
Because I do my homeworks sir i don't believe without proof some people invented the best bot of the world, never booking a loss and printing unsustainable daily interest rate consistently whatever are the market conditions.
The best part of this discussion is the future will show us who is wrong or right between us. Let see if Bitconnect bot will print 1 billions $ next 5 years. I wish you all the luck and i hope your consciousness will not be too heavy to sleep well.
I'm not saying whether its a scam one way or another because nobody knows for certain but if you had a recipe as a head chef at a killer restaurant would you disclose how you make your signature dish to all the other punters out there?
@damarth Correct, there is No Proof of a scam. There is also no proof of a trading bot. Please note that there are days with 0 payout, indicating that no money was made from trading that day. This again proves nothing other than coincidence.
Bitconnect is now traded on 5 exchanges besides its own internal market.
Bitconnect and many other coins, probably including Bitcoin are illegal according to the SEC, FCC, IRS, USA, etc etc. I think all crpytos are in as much danger of being shut down by authority, not just bitconnect in particular.
And I thank you for the offer of luck buy I don't need it so you can keep it. I also sleep very well actually, and as for my conscience, it is also extremely well since I have done nothing wrong. I sense you imply I did.
Well then you are not a part of these scammers selling dreams and motivating new users to boost their referral earning by posting success story on internet.
You are only a bitconnect investors blindly trusting lies.
The fact Bitconnect bot never book a loosing day is a proof by itself and i am pretty sure it could be mathematically proven, probability could proove given a very short period of time (1 day) that variance induce at very high odds a loosing day should occurs at least one time over a long period of time (months) .I am not able to calculate the odds by myself, but i am sure this concept is valid, maybe some expert could step in and estimate what are such odds with 1% average daily interest of never booking a daily loosing day over 10 months. Daily winrate would have to be extremely high to never loose in such short period of time, unfortunately i don't see super high daily interest rate (>3%) or negative rate wich is totally illogical.
I repeat to you Bitcoin can't be shut down by authority, the fact that you don't know that show the level of ignorance you have regarding blockchain technology.
Trading bots are trading bots. The algorithms are agnostic since all they do is crunch data sets, there would be absolutely no difference between the alleged Bitconnect bot and any decent quality Forex (foreign exchange) trading bot. Aside from the level of returns that strain common sense well past its breaking point, their own premise does not hold water. Over 95% of all BCC trading occurs on their own exchange where it is not audited. They are only trading one currency pair BCC/BTC. Since they are almost the sole market maker, they can run spurious trades all day just to generate faux volatility.
Finally, please don't compare BCC to Bitcoin. Bitcoin never promised returns of any type. Moreover, the complete lack of any ownership indication or even location of the organization should give anyone tossing any money cause for concern.
I think they'll keep growing for months/years unless they get caught by the FBI or someone. They can last a lot longer with crypto, have the standard income and the increase in token value, expect the owners are holding a lot of their tokens.
Steem is basically a ponzi scheme aswell though, it has no income. Even if it did display ads they wouldn't make anywhere near as much as is given out in upvotes.
yes their is a big risk of the SEC going after Bitconnect and shuting down the website.
Difference with steemit , simple users don't take risk, only investors buying steem do, we have all the data available to take decison, and what is promised (distribution of curation and author rewards) can be verify in open source code. If steemit website is down with your keys you have still access to your funds.
SEC is just as likely to shut down Bitcoin as it is Bitconnect.
No sir Bitcoin can't be shut down, this is the principle of dencentralization but i agree Bitconnect can be.
the thing i am concerned with is all the personal data they collect from there users
just look at this
https://bitconnect.co/privacy-policy
I'm not signing up for that!
Thanks for pointing it out.
It really blows my mind how this can be a top 10 coin with 1.4 billion market cap.
In a sense all cryptocurrency can be seen as baked air, but bitconnect takes this concept to the next level. A Trading bot with no proof of actually existing that never loses, makers are anonymous, not listed on the big exchanges and textbook pyramid scheme structure.
Looking at all the facts this very likely to be a scam.
Concisely put!
Dont you think that many of the cryptocoins and tokens are a scam in one way or the other? In the end most of the coins are floated to the market with some pre-mining, an ICO, and then brought to exchanges. In this process, those who pre-mined, and/or sold the coins in ICO collect money they can cash out, and I'm pretty sure many of them cashed out in one or the other way after which they don't care to much anymore what happens with the coin/token value. Some may use the money collected to actually launch some kind of service, but I don't think many of the coin/token launchers actually do that.
I've written another comment to this post in which I affirm an statement Steem/Steemit requires a pyramid. This statement is 100% true.; see comment here.
I totally agree with you, crypto market is not regulated and from what i witness for years i think it is highly manipulated by several entities.
There is a lot of scam in one way or aother, market manipulation, biased ecosystem, false informations, insider trading...
It is very difficult to proove these occult activity because in unregulated market data are not accessible and verified by anyone.
This is exactly why i don't trust bitconnect and i strongly think it is a scam, no accessible data and a probable biased ecosytem because of the daily average high interest.
I don't know Bitconnect to be honest and when indeed the daily interest is set high, one shall be careful, since in the end anything with high revenues, have also the risks attached it'll never happen. That said, the service that we are using to make this conversation happen may also be a scam, a well disguised scam, but the enormous amount of Steem in the hands of the founders and the enormous amount of SP in the hands of a few, is something to be very careful about. BUT, that said, as long as we can profit from these services and coins in one way or the other, we can own the coins and tokens and use the services :) I suspects many many many more scams coming to life next years. The upcoming BTC fork's are scams as well, copy/paste an entire blockchain without creating a genesis block themself; Stealing value from BTC! But for those who own BTC, they will have the opportunity to use the scam, and profit from it. My advise: Sell the clones ASAP before these values will go south.
I think without a truly decentralized governance system we will be not be safe against powerful entity able to manipulate coins.
BTC fork and Hard Fork are clearly the consequence of the human factor and lack of decentralized governance coded into BTC.
This could destroy Bitcoin as we know it and be replaced by another coin with a more decentralized ecosystem simply because conflict are "coded" in human nature and BTC code will evolve slower than other coins, too big to fall so less risk taken and too many people to convince each tim we want to integrate a changement.
Dash for example has a decentralized voting system by masternode, it is not perfect because of Dash initial coin distribution and the fact that whales own the most of voting power, but it is better than nothing.
I know Decred (DCR) is working on DX governance aswell.
I think it will become a hot subject soon, these coins might outperform the other in such context.
Decentralised can only work when power is distributed more or less even over many many individuals, that I realise. What I also realise that likely no coin has this, since it are humans who launch the coins and most of the people who do that, want something more for themselves then others. DCR, I own a little bit of for trading, but it is something I like to look further into for investment.
This post might be old but I have to express my respect to you, sir, after reading this and noticing you actually posted this 4 months ago. Total respect!
can't stand those bitconnect banners on coinmarketcap!
Regardless... at the end of the day 90% will get destroyed and lost their intial investment. When will happen, who knows, a year from now or 10, only time will tell 😳
It is what it is... It'll keep working till it doesn't..... Who's the lucky Irishman that will be burned 1 day before there principle is scheduled to free up? Not me... It pays out and does well for now.... But the music will stop and they'll be no more chairs.