[Warning] Do Not Invest in BitConnect, it is a Ponzi Scam! Read these 10 Reasons Why
I came across this post How is Bitconnect Sustainable? How is Bitconnect Not a Ponzi? written by @craig-grant which seems like a nice guy but is clearly wrong on Bitconnect.
He "tried" to state the reasons why Bitconnect was NOT a scam.
Of course, he failed.
Why is Bitconnect a Scam? I will provide you with a thorough analysis.
Please remember just one thing before we start, DO NOT trust someone's advice / Comment / Youtube Channel if he is already invested in it. Finally, I am not invested in BitConnect's platform in any way (obviously) and I do not intend to hurt this project but just to warn investors with little financial knowledge to be careful.
1. "The Guaranteed Return" is too good to be true
First and most convincing argument.
I just calculated that if you invest 10 000$ and reinvest every penny you get from your BitConnect income, with a 0.5% daily interest you would have 10 405 071 in 2 years.
This is unrealistic and I do not think anyone would believe this is a "guaranteed return".
As we say in finance, there is no free lunch. I only wish there was...
2. Creating you own coin and printing money out of thin air
@craig-grant stated that "It is not a Ponzi because they create their own coin".
I see where you want to go, but the fact that they basically print money out of the thin air for the only purpose to pay back "investors' interests" is already a huge sign of Ponzi.
In addition, except paying back interests, what is the purpose of this coin/company? They are promising ROI’s, but have no external income sources to produce those ROI’s… Oh wai I forgot about their trading bot...
3. "They have bot to trade using complicated algorithms"
First, even in his post it is obvious that @craig-grant does not actually believe in it.
Let's imagine it is true and it works, Why would a company that has already hundred of millions the need to borrow money and pay expensive interests at around 40% per month !!?
If it works as they state, why would they have the need to? In addition, as you have more money (let's assume they did not lose most of it paying the first Ponzi BCC investors) it becomes difficult to trade with the same accuracy and making money out of trading is harder when you manage more funds. This is why most Succesful Investment Funds have a limit of money they can manage to obtain the same results as before they became "famous".
4. "Only and if only the price of BCC drops it would be in big trouble".
This is a typical Ponzi sign when a company or fund cannot pay back its investors because its currency / Fund Share Value is not rising anymore.
Stating this is already admitting that it is different than Ethereum/Bitcoin/Litecoin... All these coins even with their price slashed by 3 would be able to continue developing their Blockchain and Services.
By the way, if I was managing this Ponzi Scheme, I would carefully control the price to make sure that it does not go down too fast. I didn't find any Trading platform that allows me to Short BitConnect, do you know one?
5. 1-7% Referral Bonus for sponsoring new members?
Don't get me started on this... This is the Ponzi Pyramid all over again. Don't bring your friends/family onto this platform.
6. All these people on Twitter/ Youtube/ Facebook showing how rich they became
Just realize that they need you to invest in order to allow them to make more or to withdraw their own money.
7. We do not know the Founders. How weird & convenient...
8. The company is apparently registered in the Caymans Islands, How weird & convenient once again...
9. They are promoting their platform on CoinMarketCap to attract new "customers/investors"
I don't understand? Are they in an ICO process? Why would they need to have fresh money to make their platform work?
Here is their "Advertisement"
And if you tell me it's not them, it's even worst that investors would do that as they know it's a Ponzi and need fresh cash.
10. "But it worked, I really got paid thousands of dollars"
You are lucky and probably happy with the platform. I would just advise to not double your investment after this as it is what usually happened as people are reassured that "it is not a scam".
Just remember that Madoff has been able to fool Wall Street for years and it exploded because of the financial crisis.
And during these years he always paid investors even if he admitted he never invested a single $.
Did you realize that we almost didn't speak about the purpose of BitConnect?
Except making hundred of thousands (if you were early investors) through a Ponzi Scheme, what is the point of the company? None.
If you are stupid enough to invest, just do it but don't come crying when it will explode.
To all the current Bitconnect's investors, I am sorry and get your money out as fast as you can.
Please Help me to Share this post so new investors will not be robbed by this Ponzi Scam.
Edit on November,14th:
According to the The Next Web: "The UK Registrar of Companies has threatened to shut down the dodgy platform and dissolve its operation"*
Read more here: The UK Registrar of Companies could shut down Bitconnect!
Please remember this is my personal opinion and not a financial/investment advice. You need to do your own research to make your own decision. Investing in cryptocurrencies can lead to financial losses.
Sources:
Image Credit
Coinmarketcap.com
Bitconnect.co
Steem prints money out of thin air everyday to pay for upvotes.
Interesting point. 'out of thin air'. haven't really given that a thought.
not even up to date article the referral level is only 3 now..and nothing I've read here is any different than what I've read elsewhere about this thing. plus people are forgetting that everyone that hates on bitconnect says the same things as the haters of bitcoin itself...time will tell i guess.
Don't worry about Grant, he ripped thousands in referrals. Its his best interest to send fresh meat to bitconnect to be slaughtered. Karma is a bitch, right. I heard he got hacked.
This post is upvoted by Polsza for 47 %.
If you want help us growing upvote this comment.
Thanks !
VIDEO RESPONSE – https://www.facebook.com/groups/afinocrypto/permalink/817142951801731/
Yeah all coins are as useless as BitConnect ...
Sounds like a more complicated onecoin scam all over again...
Bitconnect sounds to good to be true? but in the short term? People earn money.
Yea, there is no doubt people are earning real money. But that doesn't change the fact that it is unstable and will collapse. Eventually screwing thousands of misled people out of their hard earned cash. At the end of the day it is up to you how you want to invest your money when presented with the risk. My issue is the amount of disgusting people out there trying to lure people in through Social Media.
I agree with you @trystonperry11 100% its too bad these things are out there but they are... ive always been skeptical of this one as well as the most recent version ethconnect. these things play on peoples greed so they become highly profitable for a select few. anything that promises to pay you a percentage daily or that you have to sign people up underneath you is most likely a ponzi. and Thank you @vlemon for posting this valuable warning for people who may not know about these sorts of things. definitely following both of you and upvoting. wish you both much success!
You are more than welcome and I hope it helped some investors to not risk their money into Bitconnect.
@trystonperry11 I agree with this is not realy stable. But do you think stock market is stable? All investments are risky. It depense on the people witch level of risk they want to take. But everybody should make their own research!
It's a ponzi, which relies on misdirection and lies to lure people in to perpetuate what is eventually an unsustainable scam. It was not started with good intentions, it is a hoodwink for the owners to walk away rich.
VIDEO RESPONSE – https://www.facebook.com/groups/afinocrypto/permalink/817142951801731/
Dude! If you didn't know it was a ponzi scheme when they said you could earn 1% daily, there's no hope for you!
Very well done. It still astounds me to this day that this ponzi is operating in broad daylight and has such a large market cap. I thought it was in the process of collapsing 3 months ago and wrote about it then, but they will probably keep it alive as long as BTC keeps going up. I'd love to short it if you can find a way. Followed.
I guess the only would be through HiBTC but i don't even want to have an accound on this platform since they listed BCC. It shows how little due diligence they do on the coins they propose.
It's an obvious ponzi but so many dumb people are investing shitloads of money in that it's actually going to last for couple of years. I'm sure of that.
Also most of them who earn from lending to bitconnect reinvest all of their earnings. That will make it sustainable even more. But god knows for how long. I wouldn't put a cent into it. Because no one knows when it's going to fall. And I'm sure it will.
When the supply of new investors stops or people stop reinvesting they are fucked.
People thought that beanie babies were a good investment too,
If they have dollars in their eyes , then their's none to talk them out of their stupidity.
Thank you for the comment @runicar.
I think with the UK looking closely into it, the affiliate programs being lower and more and more influencers calling it a scam, it should go down soon.
Please find below my latests update published a few minutes ago with the UK investigation!
📣 The UK Registrar of Companies could shut down Bitconnect!📣
Will look into it. But I still think people's greed will overrule. There is nothing better than free money for the dumbed-down, moral-less and uninformed people. That's why I think it will continiue for a couple of years because let's face it. Bernie scammed much smarter and more influental people than bitconnect is scamming now. And he was doing it for 50 years.
VIDEO RESPONSE – https://www.facebook.com/groups/afinocrypto/permalink/817142951801731/
Great post @vlemon
I think people that want to take part should take your points into consideration and then when they join they should only blame themselves when they lose money.
This is very high risk business and is not sustainable like you pointed out. 40% pm is crazy.
Hello @colinbrazendale,
This what my goal, make new investors aware that they could lose it all.
If they still want to risk-it, it is their own decision.
I just want to say that Bitconnect make also money with the transactions fees on their OWN MARKET !!!
Thank you for the info.
Why nobody talk about that fact ??
But they have a trading bot, and some guy named Craig told me it’s the real deal. And he seems to have a lot of money. /sarcasm.
Their are literary hundreds/thousands of trading bots. When everything is opensource. It's not too hard to implement something too automate the process.
But the people who invest in these scams are probably not the most knowledgeable people.
Ahah @justiceak.
Good one!