He thought of bitconnect being a scam by them just buying the bitcoin and making more money than their clients and just paying their customers some of it, but that's not the case!

It's still a scam, but a whole different one! It's one that pays the first investers with the money of the newest investors. Through that, it's easy for both them to make tons of profit and maintain a good reputation, as there is no way we can prove they are doing this, untill it's too late!