I'm on the Bitconnect bandwagon and fully understood that when my loan was up I would get my capital back in $ back plus the interest earned in the loan period. The one catch I didn't get is the re-investing bit.
I and a lot of other people seem to think everytime they re-invest from their lending wallet it goe's to the original loan to earn compounded interest.
But it does not - every new loan you make is a new one earning it's own interest.
But here is the big worry to me. for every time I re-invest by making a new loan from the interest earned, the lending clock starts again from that new date.
So after my first loan of 299 days, I would only get back that which $100. Then would have to wait for these little new loans with different start and end dates to pay me back.
So If we all re-invest all the time, then we are forever pushing the clock further and further forward to reap the real benifits. Which is a worry because how long will this company last...
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Yes, it is a worry.
Things that are not explained only discovered, after the fact is a major Red Flag imo.
sorry you did not see when you went to do your first reinvest the new loan date for that loan.
I tested that and used a 10 dollars figure and saw a new loan number and maturity date and went no further.
you have a very valid point! I thought the same thing myself! thats why now you are seeing videos on youtube of folks cashing out not all but some of the interest I call it proofing out the system, also there are many who are actually doing the 120 days loan or the 179 days loan. which if I was doing I would cash out mid way through, the 120 days = 4 months I would cash out in 2 months and the 179 days = 6 months I would cash out in 3. you always have the option of going in again with that same amount or more. Also the "compound interest" is valid basically what happening with that is all those loans interest added up, and I hear you they are extending the thing for a longer window even the folks that reinvesting the large 4 months loans they are pushing it out to 5 months etc. but keep in mind that first loan is coming due as well. but it is what you say its not treated as one big loan when you reinvest they are seeing the interest total and thinking that it is.
But the real benefits are the interest payments. Getting the loans back for me will just mean I have to reinvest them. It's always a good idea to get your investment amount back prior to the loan end. Based on the just in case principle.
Not exactly true, you can still withdraw the daily interest and once you get your initial capital back your playing with House money.