Hi,
Aren't most of the cryptos a bubble? I mean it's a normal thing in modern economies to boom and bust etc in cycles but the bust is always when the supply exceeds the assets (since it's very hard to control the supply nowadays it seems, but the money in an economy should cover all assets and a proportional bit extra to allow businesses to start up with loans etc)...... but what assets are there for bitcoin? It seems like most cryptos aren't backed by anything so it can't be much more than a Ponzi either?
Maybe I don't know what I'm talking about but something about bitconnect is that I only just invested now, as I'm not sure exactly how it worked and wanted to get a monthly income for a while (wasn't going to reinvest the interest like most people would). The business probably isn't earning from their trading bot like they say they are, but when in the 'lending' part, I notice that the USD are fixed so you can't really lose. The only way to lose is when staking if they run short of funds and dump the BCC price to compensate.....only those in the BCC part will lose out. The USD in the lending etc will then be able to buy shit loads of BCC. The USD being the safe haven.
The fact they have these two parts means they can probably balance things accordingly if they have any problems. Also, the lending rate is not guaranteed so they can also significantly decrease that at any time, although investors can lose confidence in either scenario.
I sincerely hope you are just trolling. Bitconnect uses 50% of every loan on the affliate program and still somehow manage to give a over 1% return every day, this would mean if you invested 100$ today you be a billionaire in under 5 years. If this sounds too good to be true you should know its not true.
I thought about it more and read a few other blogs etc and I think I know how they are doing it (sort of). I read earlier that they pre-mined millions of coins so they have a ton of wealth. Their coin algorithms mean they are receiving a ton of interest (you will notice that it starts off high and tails off every 6 months for some reason, but I'm no expert on the economics of these things) and you must realise that is all they are paying investors each day. So they are gaining almost unlimited amounts of interest using the powers of compound interest and their staking percentage (which is around 8% a month I think for now). Their whole site is designed also to pump their coins, so users have to buy their BCC and then lock their BCC away (with the pretense of having it turned into dollars and being lent) and there is also the temptation to keep reinvesting which further minimises the sell pressure. Their affiliate program is multi level and encourages an ever increasing amount of people to buy so they have no problems there either even if somehow they couldn't afford paying 1% a day from their massive pre-mined coin interest (not even getting into their coin reserves probably). Even their bitconnect trading bot profit is reasonable if they are actually trading on their own exchange and taking some profits from it somehow and trading in volumes at least equivalent to around the total deposits (one thing I can think of is that they only accept BTC/BCH which they know well in advance that people are going to buy their coin with shortly after the deposit 99% of the time so unlike other traders they will know a rough estimate of what is going to happen depending on the recent deposit volume of BTC) . They also pay affiliates in this BCC coin too so not sure they need to worry too much if they have almost unlimited reserves and their coin is continually getting pumped! So until people stop being willing to buy the coin, I don't see the payments stopping any time soon.
Regarding illegal Ponzi schemes, the fact they are purely using digital tokens would exempt from the law in most place as the tokens aren't regulated yet. The whole UK company registration is common for the scam sites but it is just to make them seem more legitimate. Any site which accepts fiat cannot be a Ponzi scheme as they would get in a lot of legal problems in most places, but if it is just cryptos then they don't have to worry about regulations.
So it's true those holding the coin might lose out eventually if the coin starts dumping (maybe from the owners taking some profits as they do have a lot of pre-mined BCC worth hundreds of millions and getting about ten million dollars a month in just interest at current staking rates probably lol) but those in the lending section will still not lose their deposits as I'm sure they would want to keep it going....so it might be one that crashes now and again and recovers.
