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RE: BitConnect - A theory on the trading bot.
Their philosophy "Is to create a decentralized system and empower people financially.". But money doesn't come out of thin air. To keep paying the first users new users would be a necessity otherwise the value of BCC would fall due to more supply than demand. Putting more pressure on the 'bot' to return those payments in dollar terms. That said whether it is a pyramid scheme or not, so is Amway and Herbalife and those companies seem to be doing just fine so far...
Hi thanks for the comment. In reality, it is not true that you need to put pressure on the bot. The truth is, if there is no liquidity in bcc than people will just not be able to get out of the platform. But even if there is one person holding 1 bcc and the person wanting to get out is willing to pay $10,000 for that bcc to get out of the platform they will. And as long as there are people wanting to make 1% profit average a day, they will be able to sell that bcc for btc. That is the genius of this platform. They simply use the same incentives that are used to mine bitcoin but for people to use their coin. Just give people money to do it.