So how can Bitconnect pay about 1% a day and not be a ponzi scam?

First let me say that I am not a financial adviser and that all cryptocurrency investments are risky. It's always been like that, the higher the returns the higher the risk. And we've all seen the volatility of Bitcoin  and the huge rises and drops that can occur in years time. But like all things rising demand on a finite number of something will always push prices upward. 

Like many of us that were just starting out investing in bitcoin I fell pray to a few scams out there that all seemed to have the same sort of set up. They were registered in the UK, the had an affiliate program, they offered too good to be true returns and as soon as you invested short they would disappear with all your money. 

So what sets Bitconnect lending apart, from these types of Ponzi scams that use bigger investments to pay the smaller ones until they have to shut down? 

A lot. They have a trading bot working for them. A bot that only pays us 25% of what it actually makes. They have their own coin which has continuously gained value, and which stands as a lending IOU for the bitcoin you paid to get into Bitconnect. Bitconnect coin that you lend lend out gets locked into a static amount wile incurring interest.  The payouts to lenders hardly parallel the millions that bitconnect makes off the bot, the rising value of botcoin and the falling number of tokens traded back to the lender because of the price rises in bitconnect coin. 

So yeah you make money better money then most lending platforms and especially if you are patient and reinvest.  AND they make a lot more money off of your activity and investments. This is why it will work for the long run. Lets dissect this further with the help of other supporters.  

BITCONNECT'S STRATEGY (don't hold me to the numbers accuracy they are just for example)

First you are buying into the lending platform with Bitcoin. Once you exchange that botcoin for bitconnect they now own that bitcoin which rises in value. When you exchange the bitcoin to bitconnect tokens, you might recieve say 100 tokens for example. But your bitcoin is gone, they now own it and are free to make money off it's rising price and high leverage trading. When you lend that it becomes the equivalent of USD or a more static price. All the while the price of bitcoin and bitconnect coin continue to rise. You make your 1-2% daily depending on there volatility bot and whatever amount is guaranteed according your investment, until the loan comes to term ad they return your money to your control plus daily interest. If you cash out at that time, Bitconnect's value will have risen and so you'll only get back a fraction of the tokens you originally lent out. Say 30. So they are ever increasing the amount of bitcoin and bitconnect coin that they own. Further the trading bot only pays out to the lenders, speculatively, 25% of what it makes, so their initial profit off your activity is (profit from the bitcoin + Profit from the rising price of Bitconnect coin + 75% of what their trading bot makes.)  It's a sustainable model. 

MrDigitalB explains this math a lot better and is initially where I got this information. And individuals that are well respected in the bitcoin investment community such as ryanblue7s, have moved to invest a lot of money in Bitconnect's lending platform. To date bitconnect coin's market cap is $2,529,023,491. There is no doubt that they have enough money to pay out basically about 15% of what they make everyday. 

Most importantly, Bitconnect has just announced another ICO launch (Bitconnectx) If bitconnectx does as well as bitconnect coin, I don;t expect we'll see Bitcnonnect disappearing anytime soon. 

So that's my take on it, I currently have 66% of my investment in bitcoin mining, and 33% in Bitconnect Lending. The bitconnect lending has already surpassed what I am making with mining. 

If you have been thinking about signing up for Bitconnect please do us both a favor and use my refferal link. https://bitconnect.co/?ref=cyruscoins

I generally am not one to promote and have people use my link, but others are doing pretty well with it, so I figured i'd give it a try. 

Also if you have seen my very first post here on Steemit, follow this link. The post is titled Will Satoshi Nakamoto Kill Crypto Currency? And has my thoughts on Donald Trumps claim to be Satoshi Nakamoto. 

-Cyrus