Topic: UK threatens to shut down BitConnect - page 4. (Read 7389 times)

The big difference is that Bitcoin is actually sustainable and has a vision.

If lending money blindly actually worked the banking crisis wouldn't have taken place in the not so distant past.


People should know what happens when people with poor credit get loans, since that approach collapsed brutally at the expense of the tax payers quite recently.

Except this time there will be no regulator to catch the losses, so good luck to anyone who goes this route.

It amazes me how gullible people are. You can't honestly believe that on average you can earn 1% interest compounded daily.

For those people that keep saying we don't know who invented Bitcoin - so why does it matter who started BitConnect? You're overlooking one simple fact. Bitcoin has grown to where it is today because it's a true decentralized digital currency. BitConnect on the other hand is centralized and you can only buy or sell BitConnect through their own website. So it does matter who is behind BitConnect.

For those of you that are blinded by the daily returns, please open your eyes and realize that such a system is not sustainable in the long run. You have no idea who is behind this company and any day they can decide to shut down the website and walk away with all your money and unfortunately there is likely nothing you'll be able to do about it.

If it's too good to be true, then guess what? It probably is! You've been warned!

It's also important to note that BTC is decentralized. It's not controlled by a central bank or any particular government. That's what makes BTC so appealing. You can buy/sell BTC on the open market.

BCC on the other hand is centralized, it's controlled by whomever is behind the website. All trades happen through their website. Because very little is known about who operates the website, they could decide to shut down tomorrow and no one will be able to do anything about it.

You're essentially lending your money to a complete stranger, and you have no idea what they're doing with it, and if you'll ever get it back.

The big difference is that Bitcoin is actually sustainable and has a vision.

If lending money blindly actually worked the banking crisis wouldn't have taken place in the not so distant past.


People should know what happens when people with poor credit get loans, since that approach collapsed brutally at the expense of the tax payers quite recently.

Except this time there will be no regulator to catch the losses, so good luck to anyone who goes this route.

Funny how so many are in denial about BTC which is so similar .......   Many have called BTC a Ponzi as well, hell perhaps it is.   BTC went up over 1000% this year which would be hard to match using BCC.  I honestly can't understand why so many people get their panties in a bunch about this one.  Too good to be true ?  Yes and so is Bitcoin  

I understand this issue has been resolved and that a new 1 year business license has been issued Bitconnect, or so I heard.

It just another selling strategies / exaggerated story by the media...
let's move to another topic... 

No one believes that you can make $50 million with an initial investment of $1000 compounding at 1% daily. This quote was erroneously mentioned in some article bagging Bitconnect...check any compound interest calculator and let me know when you find one which will produce that figure.

In terms of sustainability, no I don't believe Bitconnect is sustainable in the long-term - this is due not because of its model necessarily, but mainly because of inevitable government intervention/regulation. This won't necessarily be leveraged at Bitconnect but crypto as a whole will be reigned in at some point.

In the meantime and despite my nervousness about how Bitconnect operates, I have taken a reasonably large position in it. My plan is to withdraw all interest until I break even, and then re-invest as well as taking out any future returns. I realise that my capital is at the whim of Bitconnect and bitconnect only at this stage. When ('if'...*gulp*...) I break even, then I wont be happy if the whole system fails, but I will be far more comfortable losing whatever is invested knowing that I have already returned it to myself.

Some bullet points on what people don't seem to understand (or say they do, but still dismiss) about Bitconnect, as well as my own observations:

* The daily interest is not guaranteed. 1% is NOT guaranteed. The term returns are NOT guaranteed. Through the average volatility of BTC, the returns to-date have been pretty spectacular.

* If you don't re-invest, then in many cases you would have made the equivalent (or more) on merely holding BTC. This is critical to understanding how the Bitconnect system works. You lock in a set amount, and the equivalent value of BTC goes up or down. Bitconnect buys and sells BTC during your loan term. BTC has more than doubled since mid-september. Go figure.

* The model says it uses trading bots/algorithms, but I think it is far more simplistic than that. The volatility in BTC is at a heightened scale to say, sharemarkets. Almost any mug could make money based on candle-stick analysis for intra-day trading. I truly believe that the Bitconnect model is a bunch of analysts leveraging the 'loaned' bitconnect coins in the BTC market. On most days, far larger profits than 1% could be achieved and the cream from this is how they operate. The accepted residual interest is what is passed onto investors.

* In light of the above, why doesn't everyone just trade BTC themselves if it's so easy? Well I myself definitely do not have the time to sit in front of my computer all day - I'm leaving it to a bunch of other people (sorry, I  mean 'bots'...). I also keep some directly in BTC.

* Apart from rapid government intervention, I cannot see a similarly 'rapid' demise of bitconnect...it would require SUSTAINED depression (or stability) of the BTC price (and hence sustained 0% daily interest) before any significant investor withdrawal. I for one only put in $10k loans or above at any one time meaning that if the writing is on the wall, I will be one of the first ones to start taking my capital out upon respective maturity dates. People who are putting in low amounts will be the last ones to salvage their investment.

* With regards to the referral scheme - this is the one aspect I despise about Bitconnect. I have no referrals on my account and am not actively trying to recruit. This is the one part of it that does unfortunately scream 'ponzi', and as others have mentioned the diagram on the Bitconnect page is a picture of a pyramid itself. Surely they are taking the piss here? My only comfort is that the referral scheme is slowly but surely dying out. The returns and levels of referral are decreasing which hopefully is an indication that Bitconnect are trying to establish a level of certainty and transparency for new investors. I hope they get rid of the whole scheme eventually and revoke all existing referral payments for members.

Overall, is it guaranteed? Hell no. I have risked capital for a comparatively short term and hopefully I come out on the other side. If not, I'm not going to lose my house but I am willing to accept whatever losses I sustain.

Thanks for providing more then a few sentences of context.  No one seems to be able to form more then one sentence thats relevant about BCC. Cheers and good luck.