Quote from: sebo81 on November 16, 2017, 12:01:35 AM

Quote from: MPulse on November 13, 2017, 03:41:05 PM

This is just hopefully another warning to those people who are falling for this scam. How could anyone believe that if you invest $1000 and the company gives you 1% interest compounded daily would make your investment worth $50 million+ in 3 years. Do you honestly believe that is sustainable?

No one believes that you can make $50 million with an initial investment of $1000 compounding at 1% daily. This quote was erroneously mentioned in some article bagging Bitconnect...check any compound interest calculator and let me know when you find one which will produce that figure.

In terms of sustainability, no I don't believe Bitconnect is sustainable in the long-term - this is due not because of its model necessarily, but mainly because of inevitable government intervention/regulation. This won't necessarily be leveraged at Bitconnect but crypto as a whole will be reigned in at some point.

In the meantime and despite my nervousness about how Bitconnect operates, I have taken a reasonably large position in it. My plan is to withdraw all interest until I break even, and then re-invest as well as taking out any future returns. I realise that my capital is at the whim of Bitconnect and bitconnect only at this stage. When ('if'...*gulp*...) I break even, then I wont be happy if the whole system fails, but I will be far more comfortable losing whatever is invested knowing that I have already returned it to myself.

Some bullet points on what people don't seem to understand (or say they do, but still dismiss) about Bitconnect, as well as my own observations:

* The daily interest is not guaranteed. 1% is NOT guaranteed. The term returns are NOT guaranteed. Through the average volatility of BTC, the returns to-date have been pretty spectacular.

* If you don't re-invest, then in many cases you would have made the equivalent (or more) on merely holding BTC. This is critical to understanding how the Bitconnect system works. You lock in a set amount, and the equivalent value of BTC goes up or down. Bitconnect buys and sells BTC during your loan term. BTC has more than doubled since mid-september. Go figure.

* The model says it uses trading bots/algorithms, but I think it is far more simplistic than that. The volatility in BTC is at a heightened scale to say, sharemarkets. Almost any mug could make money based on candle-stick analysis for intra-day trading. I truly believe that the Bitconnect model is a bunch of analysts leveraging the 'loaned' bitconnect coins in the BTC market. On most days, far larger profits than 1% could be achieved and the cream from this is how they operate. The accepted residual interest is what is passed onto investors.

* In light of the above, why doesn't everyone just trade BTC themselves if it's so easy? Well I myself definitely do not have the time to sit in front of my computer all day - I'm leaving it to a bunch of other people (sorry, I mean 'bots'...). I also keep some directly in BTC.

* Apart from rapid government intervention, I cannot see a similarly 'rapid' demise of bitconnect...it would require SUSTAINED depression (or stability) of the BTC price (and hence sustained 0% daily interest) before any significant investor withdrawal. I for one only put in $10k loans or above at any one time meaning that if the writing is on the wall, I will be one of the first ones to start taking my capital out upon respective maturity dates. People who are putting in low amounts will be the last ones to salvage their investment.

* With regards to the referral scheme - this is the one aspect I despise about Bitconnect. I have no referrals on my account and am not actively trying to recruit. This is the one part of it that does unfortunately scream 'ponzi', and as others have mentioned the diagram on the Bitconnect page is a picture of a pyramid itself. Surely they are taking the piss here? My only comfort is that the referral scheme is slowly but surely dying out. The returns and levels of referral are decreasing which hopefully is an indication that Bitconnect are trying to establish a level of certainty and transparency for new investors. I hope they get rid of the whole scheme eventually and revoke all existing referral payments for members.

Overall, is it guaranteed? Hell no. I have risked capital for a comparatively short term and hopefully I come out on the other side. If not, I'm not going to lose my house but I am willing to accept whatever losses I sustain.

Thank you. Finally someone that breaks it down and actually provides the negative points, but with reason. Someone who freaking gets it. Its not all rainbows and fairies. The risk part is real, but lots of scared money commenting on the platform before even trying it. I wish you and I the best. I'm about a week or two from breaking even and then I'm on House/Bitconnect money. So yes if it all got brought down, i wouldn't be in a bad position, but if BCC continues to follow Bitcoin's uptrend then I honestly don't know how this isn't sustainable. As far as the Government interaction, I wouldn't underestimate the Blockchain technology that this platform uses to secure it. Bitconnect follows the same principles as Bitcoin as far as decentralization which is why you don't know who the creator of Bitconnect is either. It doesn't seem to bother Bitcoin folks much that they don't know who the creator is, but with Bitconnect not revealing the creator either; Somehow this gets taken as a red flag, but why isn't it a red flag for Bitcoin?

Also instead of reinvesting, have you tried just reinvesting in BCC by transferring it over? Its kind of like your putting in a buy for BCC coins. I've been playing the uptrend on Bitcoin/BCC's bounce after the Bitcoin cash attack this weekend. I'm liking my returns and I also like that I have control of the coin and can switch it to Bitcoin and get it out of Bitconnect very easily. Something to try if your worried about selling your soul too high w/ the lending program. lol