Good review. Whilst I agree it’s a clear scam, I don’t believe it’s a ponzi in the traditional sense. In a traditional ponzi, investor A is paid using investor Bs investment.
Bitconnect is no where near so simple. Investors have to pay in bitcoin, which is then converted to bitconnect token on the site. This step is pointless and adds nothing if the scheme was legitimate. These bitconnect tokens are then ‘le t’ to a trading bot which pays out returns in dollars. These dollars can be reinvested or converted to bitconnect tokens, then to bitcoin and withdrawn.
The bitconnect tokens serve no purpose at all as the trading bot is supposed to trade in bitcoin!
Unless of course you are bitconnect. Then having a currency completely under your control (due to a massive premine) makes perfect sense. If you pay out in a token that you completely control, you can continue for a very long time). If new investment ta slow down, simply restrict the supply of bitconnect token, increasing its price and no one will notice!
Therefore I do t think it is a traditional ponzi and could run for a long time. I invested a very small amount 6 months ago and despite supposedly receiving the dollar value of my investment t back, I am still well under in bitcoin terms.
This will crash at some point and will seriously damage the public perception of crypto when it does!
I forgot to mention that simple maths demonstrates how unfeasible it’s interest rates are. I saw a post (which I can’t find now) that showed that if you invested $10010 and the interest rate averaged1% and you reinvested all payments (perfectly feasible) you would be a trillionaire within 5 years! Does that sound realistic?