Why I believe Bitconnect is a scam:
Bitconnect,a trading bot platform which pays you to lend them money and earn nice percentage of your original imvestment daily(based on the bots work).Great opportunity right?
Average payout rate is around 500% yearly,so you can make a lot of money.
Now here's why I think it's a PONZI scheme.
There is no proof of trading bot doing any work,they say it is because they are protecting themselves from competitors. Hard to believe right? But it still manages to pay everyone,how?
So everyday new people are investing and giving them money which helps them fund them and others, simple ponzi scheme explained in a picture shown up.
Just take for an example if you gave them 1000$ in bitcoin(when btc was 1000$(jan 2k17) and they keep paying you 20 $ a day,wow thats great and your 1000$ invesment earns you 6000$ by the end of the year,awesome,but actually the btc you gave them is now worth 15 000$ so actually they earned 9 000$.
But it is all good while new people are coming in,when they stop investing,it all crashes with your money.
Disclaimer: this is just my opinion but I do want you to think about it and make as much research as you can before investing in it.
I share the same opinion as you have there. As the price of BTC rises, it would be better to invest your money on trading rather that let it sleep there hoping that you'll earn after 365 days.
Probably is a scam unfortunately. I will admit, I have about 800 dollars invested since October 2017 and I don't reinvest. I just take accumulated BTC and put it back into my Exodus wallet. Since then, simply holding the BTC would have provided a better return. You are spot on. Thankfully, that's nowhere close to my entire crypto portfolio. But I do hope it will go to full term for me and I can take my initial investment out. I guess I justified it as an extremely risky experiment.
If you want some crypto passive income consider KuCoin exchange, at least they are not a scam and they provide great exchange service.
Use the ref link
https://www.kucoin.com/#/?r=1tJb1
Read about it >>> https://steemit.com/cryptocurrency/@batmancoin/kucoin-better-than-binance