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Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 25/08/2017, 23:24:07 UTC

That article first appeared on BitConnect's website where other media has quoted its content, crediting BitConnect when doing such.

To be fair, I see how you could not [bit]connect the dots on your own because ... wait for it ... you're a retard!

To be fair, BitConnect started out as a social media/news aggregation site, so they print tons of press releases anyone sent them. Not sure that's an actual connection there. Maybe, but I'm thinking probably not.

indeed at the bottom the page you can read this:
Quote
The published press release on this page should not be viewed as an endorsement by us. The website or company may be unsafe, untrustworthy, or illegal in your jurisdiction. You should do your own research before investing money in any company or website.
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Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 25/08/2017, 22:02:26 UTC
The official explanation is there: https://bitconnect.co/system-news/72/bitconnect-accessibility-update-glitch-in-the-websites-service/

This a reasonable explanation to why the market crashed on the exchanges last night (it had nothing to do with this thread).

I'm not sure Gleb Gamow's doxing proves anything concrete... or at least it's not obvious.
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Topic
Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 25/08/2017, 07:45:19 UTC
The silence on their twitter account is compelling: https://twitter.com/bitconnect?lang=en
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Topic
Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 24/08/2017, 19:35:32 UTC
What happened a few days ago with their android app is kind of weird: they apparently removed it from the Play Store due to logo issues. Now if you try to open the app it tells you to update to the new "ABC" version redirecting you to an inexistant play store id... You can't use the app anymore. Why couldn't they just push an update without the logo instead of disabling the app? Very strange... or was their app removed for some other reason?
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Topic
Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 24/08/2017, 08:15:50 UTC
I'd just like to point a few claimed "facts" to keep this thread from going into too many divergent conjectures (of course we don't have any proof) :

1. Their trading bot is supposed to be trading BTC against USD and USD against other FIAT and doesn't operate on their own exchange as is stated on their trading bot announcement page:
            https://bitconnect.co/system-news/21/good-news-for-bitcoiners-who-loves-the-profit-the-bitconnect-price-volatility-software-in-place

2. They have a built-in anti-crisis protection system (volatility based circuit breaker):
            https://bitconnect.co/bitcoin-information/27/what-is-volatility-based-circuit-breaker

3. The crazy compound interest calculations often forget to take into account that:
- Each reinvestment is a new one (it doesn't add to the previous one)
- Each reinvestment is locked down for a predetermined numbers of day so that most of the wealth remains mostly virtual and the only "guaranty" is a variable daily interest earning based on your total investment.

Most Ponzi are only revealed in major crisis situations when too many people start selling at the same time but as long as this doesn't happen the Ponzi is a very successful operation that can last for many years...
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Topic
Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 15/08/2017, 17:25:07 UTC

There is a huge mistake in the first link: Bitconnect trading bot IS NOT trading bitconnect coins but BTC with USD and USD with other currencies... as is said on their "Volatility Software" announcement page. However there is still no proof of the existence of this bot.

Here is an extract of the page I just linked:

Quote
The software will auto calculate the lending interest and is based on volatility of BTC against USD and the volatility of USD against major world currencies. The higher the volatility, the more uncertainty is attached to the expected return on your investment. You can also calculate expected return on an asset by Bitconnect interest calculator, uses previous 7 and 30 days average to calculate return on your investment.
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Topic
Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 14/08/2017, 20:03:06 UTC
When Bitconnect gonna distribute BCH to there users? Are they planning to distribute when the coin is at $1? With the current price at $300 a piece they need to Pull a Rabbit out of the hat from thin Air with a coin on their neck  Grin

Apparently they're supposed to have done it already (can anyone confirm?). Contrary to what I said earlier BCH deposit AND withdrawal is possible. These options only appear in the main Dahsboard and not at the top of the exchange.

About their lending platform and the compound interests, there are a few points to note:
- Each time you reinvest, the invested amount is also locked down for quite a long time especially if the reinvested amount is below $1010 (in that case it's locked each time for 299 days)
- each re-investment is used separately (you can't reach the interest bonuses by reinvesting subsequent small amounts)
- So even if you seem to earn a lot, it's over a long period of time, most of the earned money remains virtual until it's released (one needs to make sure their website will live for that long...)
- The more money you put in there, the faster you can break even or the more you can reinvest:
  I've calculated that to break even on a $1010 investment with a 0.8%+0.1%(bonus) as the average rate it would take about 112 days (it would take only 96 days on a $10010 one due to the bonus interest increase)

One of the most concerning things about bitconnect.co is the absence of any major exchange for trading BCC. If bitconnect.co dies so does BCC. That's very dangerous.

These big interest rates are probably the reason why they favor recruiting small investors, they have much less to pay on a daily basis while holding the investors' money for quite a longer time...

As a precaution I would do the following :
- Invest an amount I can afford to lose
- Transfer the earned $ every day to BCC (so as to benefit from the coin price increase)
- Exchange the BCC for BTC regularly (every week) and transfer them out of bitconnect
- Do this until I break even
- From then on reinvest what I earn every day.

This approach transforms bitconnect into a kind of mining contract for BCC and/or BTC...
If the system proves to be sustainable over time it won't be too late to invest more later.
If it's a scam then I'll still have 'mined' some BTC...

Soon (according to their road map) they are going to implement minting directly in the web wallet (this is strange as this will deter people from running the client to expand and secure the network). This will be yet another way to discourage people from cashing out to btc...
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Topic
Board Announcements (Altcoins)
Re: [ANN][BCC] Bitconnect Coin - Decentralized Cryptocurrency
by
2072
on 13/08/2017, 23:45:15 UTC
So after reading the 90 pages of this thread for the last 2 days (yes I'm a bit crazy), so I could forge myself an informed opinion before deciding if this coin is really worth something or not, I can sum-up the facts, good and bad as follow:

   - The devs are unknown (but so were Bitcoin's at its beginning)
   - They didn't provide any whitepaper (Bitcoin's original whitepaper was very simple itself and didn't go into details)
   - The GitHub source page is a joke (only a few cosmetic commits and no activity/update)
   - However a lot of private dev has been going on (wallet clients for all major consumer platforms, very functional exchange with top security, smartphone applications for Android and iPhone, mining pool…).
   - They claim to be an open source platform but much of is completely closed…
   - The privately developed software is of high quality.
   - The main dev call himself Satao Nakamoto (no comment)
   - Devs acted unethically when they switched their lending platform abruptly from BTC to BCC to force people to invest in their new coin (it was in December 2016 if I remember well).
   - They do have a public blockchain.
   - You can find many "news" article about bitconnect but they are all sponsored press releases.
   - It looks like a Ponzi scheme, it smells like an MLM, and act as get rich quick scheme…
   - OP doesn't reply to scam accusation anymore (they did in the beginning but gave little proof to alleviate these accusations).
   - The coin is only sustainable if there is indeed a huge trading bot investing all the funds stored on their main exchange in btc/usd trading.
   - When asked how this bot was not taking any loss days after days, the OP answered that they save on past earnings to compensate for those bad days and distribute interest nonetheless saying that they do plan on improving their bot algorithm.
   - There is no proof of the existence of this "volatility software" but as a dev myself I can imagine it to be perfectly plausible, given the volatility of bitcoin and the amount of btc they have gathered it's totally possible to generate the income necessary to support BCC economy model without using new investors' funds directly to pay the old ones (this [promotional] video explains it).
   - They're listed only on 5 small exchanges (CoinExchange.io, Crypto DAO, Livecoin, Novaexchange, TradeSatoshi) besides their own that encompass 90% of the volume exchange.
   - When you invest on their platform you have to buy bcc using btc and then buy a lending plan in $ using the current market price of bcc on their exchange. The bigger the loan the bigger the bonus and the shorter the invested money is locked down.
   - After the lock-down period is over you get your deposit back in $, you can reinvest it directly or you can convert them back to bcc at the current market value.
   - When investing you get paid daily in $ that you can convert without fee to bcc at the market price as soon as you have $1. (The daily paid amount strictly follows the volatility software interest rate + any bonus obtained from the amount being loaned) .
   - You can reinvest what you earn daily as soon as you have $100 thus benefiting from huge compound interests over time.
   - The lowest withdrawal limit is 0.005 btc + 0.0007 fee
   - They still don't allow withdrawal of BCH (but allow deposits(!) - unless the withdrawal option only appears when one does have BCH to withdraw…)
   - They have a roadmap and achieved every milestone of it on time so far delivering new features and causing scam accusators to disappear from this thread one after another (but this doesn't prove much).
   - The value of the coin has increased steadily over the past 8 months.
   - People are getting paid so far so they do deliver (this doesn't exclude a Ponzi).
   - They have implemented an anti-panic system on their exchange ("volatility based circuit breaker") which was actually never mentioned in those 90 pages. (this is maybe why they avoid big exchanges…). This is quite innovative in my opinion and add self-regulation to the market preventing human emotions from destroying the currency.
   - Their ad campaign are very aggressive and they plan to do more according to their roadmap (this support the Ponzi accusations)
   - You can't buy anything real with this coin yet but they have been talking about a smart card and coming partnership with undisclosed companies. (so for now it's only speculation)
   - They have made it so that one would want to keep their BCC instead of cashing them out in btc, in many subtle and clever ways…
   - They seem to target small investors mainly (MLM campaign, very low investment entry possibilities, very low limits in withdrawals and transfers). Is it because it's easy to scam new investors or because they want to turn the table around? (Are the people behind it truly there for betterment of mankind and not to get rich themselves?)
   - From what I understand they want people to use this coin as a way to pay for their daily needs but keep the majority of their shares in the system for as long as possible. They designed this as a long term investment with supposedly guaranteed daily returns.
   - If bitconnect is not a scam the math tell that it would destroy standard economy as we know it… (taking all the money from the poor, investing it automatically and redistribute it evenly, in the long run money wouldn't be worth anything - is that possible? I might just be dreaming here…)

So in the end it all comes down to one real question: Is this trading bot real or not? This is what decides whether this is a scam or not… So this thread should focus on finding ways to answer this question. All other shady facts are not playing in their favor but apparently they clearly don't need to defend themselves given the coin current success so why would they bother? Maybe they just think that history will prove them right so they don't care.
What's clear though is that the people behind bitconnect.co are very clever in many ways…

I invested $100 to see how it goes (it was 7 days ago) and bought 3.5 BCC not currently invested. I still haven't decided if I want to risk more. But what I can tell from my short experience of their system is that they do have talented developers working for them so maybe this trading bot does exist but we should really focus on a way to prove that.