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RE: Major BitConnect Shock – Is this your last chance to get out?
They still have issues with the site. Even if it's legit, it will be difficult to come back from this. Although people's greed
They still have issues with the site. Even if it's legit, it will be difficult to come back from this. Although people's greed
Maybe they are real issues, but it's an easy excuse to make having "web site issues" or "we've been hacked". How many times have we seen these cover stories before?
Sometimes peoples greed is only exceeded by peoples stupidity.
I read an article on why its not a scam and I can see how it can work. Its all to do with the hoops they make you jump through, buying BCC, the fact that they control the supply from the pre mine and the fact that btc keeps going up (at present).
For example, I made a loan which has already returned 50% of the dollar value, but when you convert to btc I am nowhere near 50% and if I had of just held the btc, I would have been more than 50% up already.
Possibly not a scam but not the amazing investment it was billed as either.
Can you send me the link to the article?
I think if the scheme is dependent on BTC going up....then what happens when BTC goes down? If it is effectively leveraged on the BTC price then are losses magnified?
Hi mate, Here is the link:
https://bitconnectexplained.wordpress.com/2017/07/26/bitconnect-explained/
This explains what he thinks is going on and I am starting to believe this. There is also a youtube video that is similar. Ill try and find that.
Recent events do support this.
If investors invest in btc and the bot trades in btc, why do they need the BCC complication in the middle? It makes no sense unless its to control the whole scheme.
Additionally, if the bot truly does trade on btc volatility, why have the last 3 days (since the alleged hack) been so low. These returns should be independent of any hack.
I personally invested 40 days ago (give or take) and if I was fully repaid what I invested (in dollars), plus all interest etc I would be $200 down due to btc increases. I would have been better off just holding btc.
You could argue it is a hedge against btc dropping in value, but that's only true if they continue to pay!
It's creative accounting smoke and mirrors. A clever piece of writing that, sounding like he's a skeptic but after figuring it all out he's a convert! With a referral code no less....
Here's an example of the logic :-
But...what if the BCC price goes down? They have to pay you more coins to make the promised ROI right? What if it goes down so much the mined coins won't cover it? Yeh....he doesn't cover that does he?
At the end of the day, any product needs a value proposition to create wealth. All the fancy accounting tricks like mining coins (which inflate the money supply and dilute holders) don't add wealth to the system. The wealth has to come from somewhere and it's either got to be the trading bot, experienced traders (who can generate 1% profit a day - not easy without taking risks)....or it comes from the wealth of new investors buying in, which makes it a ponzi.
Sorry, the more I look into it the more convinced I am it's the latter. Good luck to you if you're still invested.
I completely agree with most of your points but having reread this I feel that it could be onto something. It may not be a traditional ponzi but something more complex, using the POS to control supply and demand and hence prices. Iam not saying this makes it a good thing or even legit, just that it may be different.
I still think it will unravel but I have no idea when. Time will tell I suppose.
I'll find the link. Basically, they make fees on transfers plus staking their own coin at 8% per month (due to massive premine) plus increase in value of BCC which they control (supply controlled due to premise) plus possible increase in btc price.