Ponzi scheme and pyramid scheme are two different things.
You mix them up in your summary.
The return from Bitconnect is actually stated on their website as being variable. And it approximates what you would get from just holding BTC. So you don't know for sure it is a Ponzi based just on rate of return.
There are some classic signs it could be a Ponzi:
- the "trading bot" is a secret algorithm, which no one discusses in detail
- the people who run the site are unknown, and could choose to disappear with your funds at any time
- it is promoted as having unbelievably high returns (which in fact are only average for the crypto industry over last 12 months).
I agree with your conclusion that it makes sense to stay away from Bitconnect. Not because i am CERTAIN it is a Ponzi scheme.
But because many of the behaviors and attributes look a lot like a Ponzi scheme, so why take the risk?
Hi davebrewer,
Thank you for your reply. Appreciate your constructive comments.