Topic: UK threatens to shut down BitConnect - page 5. (Read 7389 times)

Bitconnect is a pyramid and multi-level marketing scam, also ponzi scam. It is very obvious, they offer very high interest, people who joint will get no money eventually. Don't invest there.

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.

Bitconnect isn't a ponzi scheme ? Oh yes it is and it's because we don't even know who are behind it and ....
How is it that we now know who is behind the company and the UK is trying to shut it down ? A bit weird.

Well I call it out as a scam as I see a lot of weird and strange changes that happen in its price and market cap that don't add up and they don't even seem to care to justify it.

I still can't understand what the UK can do. Shut down the office ? Arrest the guy ? Then what ? It will still exist and will still be under the control of someone else.

I've just checked the file you posted : https://goo.gl/Bxoq5J
I can't get what is meant by "unless cause is shown to contrary" What cause and what is actually the legal charges thrown at them ?

Two wrongs don't make a right, do they? I'm no fan of most government actions and I think the tax system where I live is incredibly unjust and likely unsustainable.

But that doesn't mean that people should invest in Bitconnect. It's clearly an unsustainable Ponzi/pyramid scheme that will definitely collapse. The returns are unreal and reflect other HYIP schemes.

I get it, traders are rational. People who bought the "coin" low want to profit, and those who bought high desperately don't want to lose money. But it's a Ponzi scheme and it will end in tears. I watched one of those Bitconnect videos by Trevon James.... one of the scammiest things I have seen in a long time!

We are stepping a fine line here, despite BCC being a shitcoin scamcoin, there is still enforcement cracking down on a growing industry. Now regardless, it's inevitable that all crypto ICO's will be governed to some point, or made obselete by something unforseeable in the future.

But in the current direction of things, digital currencies in general are going to be a lot less interesting due to the big brothers hand. And that goes for potential returns.

People should stop accusing Bitconnect of a pyramid scheme and instead should be taking a closer look at the government. The government taxes young workers to provide a pension for the older generation. There you go, an example of the government doing their own pyramid scheme.

This is exactly how I feel.  All these poor folks commenting on here sound like their brainwashed. "Vitalik Buterin decides my life direction. He says Bitconect is a ponzi scheme. It must be true." LOL
I wish I got in sooner too.  I found out about Bitconnect in June, and still waited till September to get it going.  I've done enough research and beta testing though to know how solid this platform is.  Cheers and good luck.

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

Thank, finally someone thats actually checking it out. I commend the gentlemen who still felt uncomfortable afterwards.  I do understand that you feel like your hands are tied because you can't access the funds you reinvested for a certain amount of days, but the main thing is that the gentlemen got his money back and came out of it with more then he invested which is the goal for any trade. I've started reinvesting half of my interest payouts, and the other half I'm reinvesting into Bitconnect coins since there is opportunity to make money from the coins value rising.  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.

Vitalik Buterin is person in the crypto community whos opinion I value and it so happens has an opinion on Bitconnect:

https://twitter.com/VitalikButerin/status/926236948238360576

Ethereum founder Vitalik Buterin suggested about the platfrom of Bitcoin investment,Bitconnect has been running ponzi scheme,UK Registrar companies threatened to shut down the dodgy platform and dissolve its operation.Bitconnect has only two months to prove until the formal decision be in enforced.If Bitconnect fail to comply to these terms the government will strike to off its registration and seize it assets.

I can imagine all of you how happy you were when you read this article. I bet that none of you has ever invested in BCC nor used their lending platform.

Guys i can tell you one thing. Bitconnect  will stay here for long long long period of time. It might be seen as a ponzi scheme and maybe it is, but you can even imagine how much money is here to be made in near future for Bitconnect company. They are not going anywhere even if UK shuts them down. Coinmarketcap put them down a little bit, but it did not change a value of BCC at all.

Of course the changes in their refferal program had to be made. It is only going to improve sustainability of this program.
I think all of you are angry that you did not jump in early and now you are worried that is too late and only thing what you can do is hating on something you dont know sh.t about.

Hey idiot,

here is your dad - stop taking my credit card to buy some weird shitcoins based on a pyramid scheme.
You arent Bernard Madoff my son.

Also your teacher called me and asked why you didnt go to school in the last 8.5 weeks.

Therefore UK is threatening to close the company that only exist on paper which is BITCONNECT LTD, giving 2 months to prove that the company isn't a pyramid scheme. Is it too late to invest on this company?
Why is it soo hard for people to understand that the BTC is traded peer to peer for BCC?

I agree with you honestly.  The only reason they are not top 10 coin is because most of it is held up in the lending platform.  Every single review I have read from someone who actually used it got the 1% daily return.  I read one honest review on Steemit where the user got 5X his initial investment in a short amount of time by reinvesting constantly for a daily compounded interest.  He took his money out and stated he wouldn't use them again because it made him uncomfortable. He still walked about with a lot more money than he started with.   

Another thing I noticed is that on their exchange where the majority of BCC is bought they have higher prices.....  My guess is they use their bots to work their own exchange as well and gain 1% there.     All that being said buying BTC would have given 3% daily return if you bought in Jan of this year. 

I have started my own little experiment with BCC for about 5 days now and so far the returns are as expected. 

Shut this piece of Shit down

Because of this news Many people have a plan to invest. They do not have to go ahead. But the UK registrar of companies said they would be closing it if they could not prove their legitimately. Because it is for our good. To avoid stealing those investments. And be safe as we are of course. Now giving them 2 months to give them the papers to prove that they have no intention of steal it will definitely increase their clients.

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

It's amazing how many people are taking OPs post at face value, or even just the title without reading anything.

I'll quote my previous post in this thread for the ignorant, maybe somebody might read it and understand what the letter from Companies House means... nothing.

Can you do an analysis in details? The reasons, time or something like that...
A lot of people care about it and so do I.
Thanks!