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Then you have the mythology surrounding Satoshi Nakamoto, the anonymous listed inventor of bitcoin and its underlying blockchain technology. A mysterious character who creates 880,000 bitcoins of dubious value whose value is propped up by a public enthralled by stories of newly minted crypto millionaires? That’s not going to end well. Throw in a twist where one person allegedly manipulated prices on the Mt. Gox currency exchange to drive the price from $150 to $1,000, and it all sounds like a Hollywood film. The red flags are right out there in the open, waving in the wind.
But the public should know by now how these kinds of movies end: with a few people getting rich and a whole lot of people losing money.
Despite the damn-the-man libertarian framing of cryptocurrency as the great democratizer of wealth, just 1,000 people own 40% of the entire bitcoin market (which was valued at over $200 billion in early 2018, and now hovers somewhere over $100 billion depending on the massive daily fluctuations).
That’s not the currency of the future—that’s a giant multi-level marketing scheme.
But the public should know by now how these kinds of movies end: with a few people getting rich and a whole lot of people losing money.
Despite the damn-the-man libertarian framing of cryptocurrency as the great democratizer of wealth, just 1,000 people own 40% of the entire bitcoin market (which was valued at over $200 billion in early 2018, and now hovers somewhere over $100 billion depending on the massive daily fluctuations).
That’s not the currency of the future—that’s a giant multi-level marketing scheme.
Anyway, I have always maintained that bitconnect lending turned out to be a better system for cryptocurrencies than staking (I'm not saying it was planned that way, it just turned out that way). It was actually deflationary throughout in bitconnect's case (rather than inflationary for normal PoS staking) although hopefully bitconnect sold the extra coins as profit to market themselves and help grow the coin value.
Bitconnect should have found other uses and incentives to purchase the BCC coin to prop up the price which would have been easy to do as selling pressure would always remain low (remember the lending coins would take months to be released even if they reduced the interest rates to almost nothing when growth eventually slowed) and it would have carried on as long as it wanted.
It's a shame all these people who weren't even in bitconnect (but were obviously deluded about cryptocurrency) had to complain so much and get state security boards and subpoenas involved etc. but BCC is still going and I'm currently staking the coins (7% per month). They are holding a steady price at the moment but I'm guessing the price will go up again. Bitconnect and Bitconnectx have definitely stated they want to bring the price back up in the future, not least to help those more recent investors who lost money with bitconnect and they also hold millions of coins themselves.
