I've just read a Steemit post by Jenny143 saying "BitConnect Scam With Proof!" and the poster mentioned that the reason is, if you buy and hold Bitcoin's from May ~ June you would have 2.4% per day vs the average 1% per day payout from BitConnect, and therefore BitConnect is a scam...
That doesn't mean that BitConnect is a scam, this only means that the on Bitcoin is higher than the earnings on BitConnect on a daily basis. This in no way provides proof that BitConnect is a scam...
Even if you buy and hold Bitcoin (BTC) there is no guarantee that it will provide 2.4% per day as the market does fluctuate up and down and as of now we are already past BTC's highest point of $3000~ and it's currently correcting back down below $2500 and moving sideways towards a downtrend for the past 2 weeks. A coin's price can not continuously climb up without correction & consolidation, so if it fluctuates up and down, how does this guarantee a 2.4% per day return on average???
The Steemit poster also mentioned that the average daily interest is .99% per day for BitConnect according to their volatility software as of 6/2/2017, but she doesn't realize the well-informed individuals will reinvest their daily interest on BitConnect to compound interest daily. Compound interest allows for exponential growth when interest is earned on top of interest. That's where you can turn a small investment into a monster, and that's where the magic happens...
Everyone said Bitcoin is a scam and that is' a Ponzi scheme and there are still a lot of people today who say the same, only because they don't understand it...
I am not trying to incite an argument with Jenny143, but I'm simply just trying to clarify the facts that are on the table, and I would love to be friends with a girl named Jenny143 who knows's pager codes from the 90's ; ) .
Now.. Here is my proof why BitConnect should not be called a scam until proven otherwise with facts.
BitConnect makes money in two ways and this is the reason why BitConnect is sustainable and able to pay out every day at 1%.
BitConnect's is crytocurrency and the BCC coin as of 7/2/2017 is $51.97 and is in 19th place on coinmarketcap.com with a marketcap of $352,716,085. The coin was under $10 approximately 3 months and has been growing ever since. When people invest money into this coin it grows in value. BitConnect also offers staking and people who hold BitConnect Coins (BCC) over a certain period of time will earn bonus payouts. This is attractive to the investors and as it grows and gains recognition so will the price, and thus the $352,716,085 marketcap of value this company is holding.
BitConnect offers a lending program where you can lend BCC coins and they will use that money to trade on Bitcoins volatility with their auto-bots around the clock 24/7.
You can see in the image that I have provided that Bitcoin can be very volatile and ranges from 2.1% - 9.1% per day. Now, of course, the auto-bot might not hit the entire range that is given on a daily bases, but let's just say it does 50% of that consistently every day and earning an average of 1% ~ 4% per day. This shows there are good days and bad days, but on average let's say that the bot earns 2% per day which is the in-between 1% ~ 4%. This shows that Bitconnect can pay out 1% while keeping 1% which is a reasonable conservative estimate. Also, you can also see on the chart below that the good days occur much more than the bad days so they are likely retaining more than my conservative estimations.
But what about their BitConnect's Expenses??? Where does their money go?
BitConnect doesn't pay any accountant for handling the ledgers. It's a blockchain so the miners who provide their own processing power and electricity manages the transactions for the community. There is no marketing or sales team as we the community self-promote this company and receive tiered referral commissions. There is no large executive team and management team as this is a decentralized community-based entity and therefore there are no corporate buildings. If there are no multi-million dollar corporate buildings than there's no need for IT's, Janitors, Security, etc.
They do have to pay for customer support to respond to customer emails. This job can be handled by Virtual Assistants for $200-$700 / month and can be widely found in many Asian countries at this price. They do have to pay for web developers and graphic designers to create and maintain the site which can range from $10-50,000. The creators of the BitConnect cryptocurrency also deserves to take their salary for designing such an amazing system, but of course, it would be in their best interest to leave enough money for this community to scale. If BitConnect has a market cap of $352,716,085, why would the owners want to stop now and end this project? Why not become multi-billionaires in which this platform can turn into with its scalable design???
To keep things short, this explains how BitConnect can grow its value and sustain payout with referrals and daily interest. With the attraction of substantial payouts by compound interest and the referral program, this system was designed to scale exponentially. So.. If anyone can please explain with logical reasons and facts as to why BitConnect is a scam then please feel free to comment below and we can start a constructive discussion.
CryptoCoin 101
Evan Hsieh
Just to be fair here is her perspective on BitConnect for you to view.
https://steemit.com/bitcoin/@jenny143/bitconnect-scam-with-proof
This is a solid analysis... I am in BCC lending, but was disappointed seeing today's zero interest.. is this a first?
Thanks!
Thanks, Mikev.
At that day, BTC's chart has been tightening up meaning that it did not have much moving range from low to high. In this case, there is not much room for the Auto-Bot to trade and profit when prices fluctuation is this low. The 1% payout is not guaranteed and is only a daily average number that most people use to calculate the daily payout. If the bot does not profit that day, then we do not profit that day. This is nothing to be concerned about as these days are few and are current average for the past 30 days is around .80%.
Ride the wave and pullout your initial investment if you are worried its a scam.
It's funny when people call something a "scam" and no one has lost a dime, been locked out of their account nor had any negative experience with it. Even the ZERO days are due to maintenance or severe market pullbacks which is exactly what is supposed to happen. People who have no experience in trading are passing judgment on trading bots which MOST OF ALL HIGH FREQUENCY Trading in "normal" financial markets are handled with with TRADING BOTS. It's just ignorance. No one can predict which cryptos will last "forever", but as it stands, this one is ranked #10 of ALL CRYPTOS even ranked OVER the coveted EOS.. So, make your own decisions. Here's my blog on SCAMS: https://steemit.com/bitcoin/@avva/green-eggs-and-scams-the-word-the-form-and-the-nature AND here is my new blog on Bitconnect:
https://steemit.com/bitcoin/@avva/ranked-10-of-all-cryptocurrencies-as-others-pullback-it-surges-ahead-even-over-eos
Green eggs & Scams! Gotta love it ~~ Followed & upvoted.
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