Stop yelling at Bitconnect!

in #bitconnect7 years ago (edited)

2018-01-18 14_24_35-Document1 - Word.png

Before I begin, I've never invested any money in Bitconnect, so I don't have any stake in what I'm about to say.

For those of you proudly propped up on your high horse bashing Bitconnect, please take a moment to consider something about the possibilities cryptocurrencies makes possible without us even realizing. Yelling at Bitconnect for modeling what appears to be a ponzi scheme, may not be a ponzi scheme at all. Nobody knew where Bitcoin and blockchain technology would take us. Nobody knew what ideas would come out of it. We may have an idea, but there's no doubt we're going to come across those new and unique situations we never have imagined before.

In the past, old ponzi schemes got a bad reputation because there was nothing in place to control the greed that the few profited from.

Today, we have cryptocurrencies and blockchain technology making huge impacts in society and many different industries. Blockchain technology alone is a game changer itself, making so many things now possible than ever before.

My argument is this, because of cryptocurrencies and blockchain technology, Bitconnect figured out a way to take these concepts and evolved a ponzi scheme into something that is profitable for many instead of a few. Or ponzi 2.0 if you will.

I personally don't think they are to blame for their lending platform shutting down. In fact, I don't think they were doing anything wrong to begin with. We saw something that resonates as an "old ponzi scheme", people are making shit-tons of money, and then other people are afraid or don't understand bitconnect, ended up bashing and attacking it.

The dawn of cryptocurrencies is going to come in many different forms, regardless if we recognize them or not. Let's not be so quick to go on wild witch hunts. Bitconnect took an idea and made it better with technology, no different than Steem, that's it.

If they were a scam, they wouldn't refund the tokens and maintained communication with the community.

So just stop! If you wanna be mad, be mad at the government and banks. If it wasn't for them and their corruption, Satoshi Nakamoto would have NEVER created Bitcoin.

Let's learn from mistakes, improve something like this, and make it better so that nobody is hurt and everyone wins. We have the technology to do it now, which means the possibility is there within our grasp.

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Bitconnect is at fault, but not for being a Ponzi scheme. They should be punished for what they did. It wasn't a Ponzi scheme because a Ponzi scheme would imply that they are paying supposed "gains" to investors with new investor's money.

The real fault is that they guaranteed the principle of the loans against the US dollar. This was their undoing. During the DDOS attack, gains were made and loans were maturing. The problem was that their value was guaranteed to stay locked against the US dollar until which time the investor took those profits/principles and convert them at the current market price. The problem was no-one could recover them at the current market price. The market was in the midst of one of the worst corrections it has ever had. These payouts were stacking up and becoming more and more expensive to pay.

Imagine if you owed me 50 dollars and I get to choose when you pay me, but you must pay me in bitcoin. You only have so much bitcoin and I say to pay me at the moment the value of bitcoin is driven down drastically. You only have so much bitcoin to begin with. With that system multiplied with many investors, you would run out of bitcoin.

With all these payouts stacking up and the market plummeting, it got too expensive to cover the cost of these payouts. In addition, fear, bad media, cease and desist orders scared off new and returning investors. For 5 days, there were no new customers which magnified the problem.

Ultimately, they should of had some serious capital in reserve to cover the guarantee to hold payouts against the US dollar which was their fatal flaw. They were making money hand-over-fist even with the bonus program, yet they must have been spending it like there was no end. They literally didn't have enough funds to weather 5 days. There was no reserve to protect the investors. For that, they should be nailed to the cross.

Disagree. It was a ponzi scheme start to finish.
If you lost money, your only course of action is to:

  1. Accept it
  2. Learn from it.
  3. Learn to recognize them in the future.

I'm not trying to laugh at you. Trust me, I've been there too.

Bitconnect is a first time pioneer. Don't you think at some point things are gonna go south? Nothing is perfect, shit happens, and people lose money investments. Bitconnect won't be the only lending platform, I'm sure competitors are taking notes and have their own plans to do it better than Bitconnect.

It is due to fear, bad media, cease and desist orders, etc. Stop yelling at Bitconnect! Bitconnect is a great idea itself. If Bitconnect is a ponzi, Bitcoin is a ponzi, too. People need to have faith in digitalcurrency! It is all about faith!

I disagree. A scam on blockchain doesn't make it legit. Ponzi is a ponzi whether its on a blockchain or not.

Bitconnect was a scam, plain and simple. I'd consider suing them for ponzi if I'd lost a shit ton of money.

If you would like to explain what a Ponzi is , in your eyes, I will point out how Bitconnect doesn't fit that description at all.. sadly misinformed people, who have never looked at how Bitconnect funded itself, are part of the reason, they had to shut the doors.. but They did so before they ran out of money, so Ponzi scheme it wasn't... Bitconnect will be back as an exchange, and those who hold their coins will gain a lot if not all of their money back. and who knows even profits? time to snap up some cheap BCC coins..

Wow so way off base. First off, the coins are not sustainable as there is nothing driving them. Bitconnect will need new investors to be sustainable and who will have any confidence in them? Yes they are a classic Ponzi. Ponzis always have good intentions, Ponzis have incredible returns like Bitconnect. Ponzis thrive under good market conditions because new money keeps flowing in, like Bitconnect, Ponzis, have no real logic or numbers behind them, they feed off of good economic opportunities, such as the price of Bitcoin going up. The only way into Bitconnect was by investing with Bitcoin. As long as Bitcoin kept going up, they were sustainable. As soon as the market crashed, Bitconnect had nothing, no trading bot, no true sustainability so they closed their doors. If they were not a Ponzi, they would have paid back in fiat or Bitcoin, but they chose to pay in BCC, a crypto they knew was worthless. Typical Ponzi. T

Thank you. I guess it will take some time for some to just accept the facts. Until then "bitconnect wasn't a ponzi even when they promised huge interests for lenders that were not sustainable, like at all, and then they ran off with everyones btc"

I guess these defenders are part of the team, or close to it and just don't want people to get ideas like sueing. The main chiefs deserve jail time. Why else defend a obvious scam? What a world we live in.

Hmm, would you agree that it was scam if not ponzi then? Just wondering what is your stance on correct terminology here. Or would criminal activity be the best fit?

guys i loved bitconnect but i loss more then $400. it just make me said

We knew the end of BitConnect was inevitable and it was going to come to a sad goodbye. Therefore, people who invested in their platform, like myself, had to accept the loss of the money they have risked. I said goodbye to my money soon as I deposited into their account. These schemes don’t last very long and yes you could make money if you invested with them right at the start. The problem is people’s greed where nothing is enough. Everyone wanted to reinvest their money to grow their revenue exponentially. When the market started taking a correction lots of people tried to withdraw their money at the same time out of panic and that pretty much put a dot at the end of the line. BitConnect was not able to pay out all that cash at the same time so they offered to refund everyone with their currency that had no value to it at all. Of course the price of BCC crashed like a burning plane but that didn’t cost BitConnect a dime cause they were giving you something that had no intrinsic value. So they really didn’t loose anything and still looked somewhat fair in investors eyes. People say, well at least they didn’t just disappear when in fact they did but the smart way.

Its not only Bitconnect's Fault, Everyone who followed a ponzi/ Pyramid without even thinking sensible needs to be blamed as well. If you want to fall in the hole knowing its a 'shithole' cant scream foul. Bitconnect never made their managment public, nobody knows who was running that company. No Roadmap whatsoever. People wanted to gain quick money. Rate of interset of 1% per day is too lucrative to passon. Some made money were all at the Top... who knew this was coming.. and alll at the bottom are blaming bitconnect on anywhere possible.

Bitconeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeact 🤣😂 bbbitconeeeeeeeeeeeeeeeeeeeeect😂🤣 E0BD97FA-F84D-4347-AC45-586D84D39CB8.jpeg

They said they had ddos attack for days among other reasons.They caused their own lies and cover up.They obviously had a plan that we didnt know about.They got theirs and took ours.We got slaughtered.I lost 40 grand 2 days before they closed.I read everything there was to read and understand the consequences of a market.I signed up on a lending platform with a capital release date.It wasn't just buying coins.There was no warning no rhyme or reason just bad business.I own several coins but they are not lended in a system.There is a difference..They should have opened a gofundme or something to build their business.If I wanted to hold coins I would have held these coins.Im not gonna go play with them in my wallet.That's not what I signed up for.Plain and simple.

TL; DR -
Bitconnect in a nutshell:

Thank you for your thoughts. I agree whole-heartily. It was probably a tough decision, but one that gave more support to them then to the whole group.

Very good understanding and presentation of what happened. I hope they do the right thing and give back our $

People need to stop the hatred. The whole world is a ponzi. Everything is a scam. School, work, insurance, banks, Christmas. It's all one big charade.

The blockchain may be the solution to all of this. Real freedom is in sight.

That's right... All fiat is a huge ponzi. When a bank loans you $100 at 8% interest.. you have to pay them back $108.. so where does that $8 come from??

This has to be one of the dumbest answers I´ve ever read online !! Of course fiat is bs but your comment is way more =D
Cmon guys this is standard economics not some rocket science crazy shit.. tztztz
btw my first post and directly something like this lol

Very try most things are just a scam. We just accept most as "Thats life"

I'm glad I never got involved with Bitconnect. Knew it was going to close one day, and could smell the dirtiness from a mile away!

I agree it’s not an old school ponzi. It’s a very clever new style of ponzi. They took people’s btc and then paid them back in worthless bcc. That was fine whilst the price of bcc was going up due to but pressure. But as soon as they announced they were paying out in bcc and closing there was an obvious rush for the exit and the price of bcc crashed. They controlled bcc entirely due to the massive premine.
If they were genuine they would have paid out in USD (as they did on loans normally). The price of bcc would then be irrelevant.
I don’t understand how people can defend this obvious scam. The only people who benefitted were the organisers and shameless individuals who dragged more people in to benefit from referrals.

Yeah that should be the right thing to do release it in dollar and let you do the exchange to bcc and then bitcoin. So they could have their coin. And everyone is happy. If the coin goes down it doesnt matter. Your dollar stays the same and also their coin isnt going down also everyone is happy. I think they arent botting all of our money because then the daily payout should be higher. That was allways my story when something goes wrong you get your dollar back and you exchange it back if the bitcoin goes down to 1 dollar it doesnt mind you get more bitcoin then. Or their coin. That is what i allways believed not o here is your capital back but we exchanged it for you here at 363 just before it closed i did a convert from bcc to bitconnect x for 257 or something Like that.

That’s the point. BCC serves no purpose, other than allowing them to keep all the btc and pay out in worthless BCC. This worked fine while people wanted to buy BCC, but when it ended everyone ran for the exits and the founders ran off with all the btc!

Your kidding right? Tell me your kidding. I also had nothing in bitconnect but don't you feel some compassion for those countless people - fellow human beings who lost everything? It seems a scam to me when a small number of people, Youtubers and the creators or those closely connected with the founders are the ones getting rich at the expense of others. It seems perfectly normal to want to yell or have feelings of loss or be in a state of temporary anger and depression. Maybe I am wrong.

I got in late on bitconnect my only regret is i did not get in sooner never did they not pay, even when my interest was .03 i keep going i had 10 referrals all who invested what i did 100 bucks we all got all our money back in the end no ponzi just a unique business model and whats sad is y'all bash cause you afraid to try and mad you aint getting what everyone who was not afraid did and for the youtubers who educated us on there journey just like a teacher gets paid so should the promoters #gokillyourself if you dont want to invest dont but dont bash a good business model that did not scam like may before has done v-one hexabot laser and many others who ran off with tons of people money at least bitconnect was honest and still building

By refusing to admit that it was a ponzi scheme, you're setting yourself up to get cheated again. Just because you got your money out does not change the fact that it was a scam.

Recognize it for what it was or get taken again in the future!

Agree. You won’t see a clearer scam. It’s a unique business model because it’s illegal, which is why the promoters and founders are currently being sued. The model was to pay out original investors using money from new ones. A clear ponzi. I can’t bekiebe people still won’t accept it was a scam destined to fail. I personally thought it would last a little longer but they obviously saw the writing on the wall as the cease and desist letters game flooding and decided to scarper with the loot!

I admit I invested and acted of my own free will and accord knowing the risk of my invest "HYIP", reaping the benefits or otherwise failure if that was the case. I risked what I could afford and therefor I am happy with the results. By doing this I take ownership of my actions and refuse to blame a entity for any sub actions associated with my original actions. Thus being said I'm good how bout dat'

My fellow human beings are responsible for their own actions. Everyone has the choice to make their own decisions. Call it what you want, people still made shit-tons of money, can't deny that. Bitconnect might have been the first to pioneer lending platforms, but they sure won't be the last. Lending platforms aren't going anywhere. You say it seems like a scam, well how about you try it out for yourself.

Of course, fellow humans are responsible for their own actions. Then one day some guy spilt hot coffee on themselves. And they sued the shit out of McDonald's. And won.

So it will be interesting if "this is not financial advice" was said in EVERY video and if any lawyers were affected by a financial loss. Welcome to the sue-happy nation.

That’s just it. It wasn’t a lending platform. It didn’t lend anything to anyone. There was no trading bot. It simply took your investment and used it to pay off those higher up, giving the impression of making returns!

I don't think Bitconnect is a ponzi, it is only a lending platform pioneer, a real martyr, being killed by those who are jealous of its huge success.
https://steemit.com/bitconnect/@ginafraser/to-our-beloved-bcc

Stockholm syndrome. Let reality slap you in the face. Acknowledge that all Bitconnect investor were nothing but tools to these people so they could fund their next venture (Bitconnect X). Lear your lessons. Come out of this experience stronger and wiser. Take care

Yep, the replies here are just sad. Really sad. People defending ponzi after collapse? The most popular reasoning looks to be that some people actually got more money out of it than they put in. Hurray! Great for those few. Are you kidding me?

Another one is that "everyone" knew it was going to collapse before hand, sure mate. Sure. None of these bloggers pushing for it talked about collapsing. It's hard to accept the harsh cold truth.

I agree. Stockholm syndrome. Sad candidates for a Darwin award.

Sou you agree with me, yet you only upvoted the reply to my comment :-(

Sometimes you get unlucky.....just hit the wrong guy sometimes.

bitconnect was a well crafted scam if you noticed they only paid back their tokens that lost huge amount of value , if they wanted yo really pay back peoples money they should have paid them in bitcoin

U say true words. This blogger is a troll.

nice article from an unbiased BCC spectator...

Thank you, I appreciate that!

Hopefully bcc will rise alot in price soon so everyone can stop trying to say its your fault when yoy was just showing them your strategy. You didnt make them put there money into bitconnect they did it themself as they are responsible for there own money and just want someone to blame but they should be looking at themself not trevon.

Although I feel like I lost almost $1500 bucks on BitConnect, I am not mad at them. They changed the lives of so many people and they sustained for a long time in my eyes. People were told repeatedly to only invest what you are willing to lose. You could say the same for pretty much all of the crypto world. These waters are uncharted and the path to the future was never promised to be easy. Some will win and some will lose. This the way in nature so what makes us believe that us humans are exempt??

BTW: I'm still holding these cheap BCC tokens. You only lose when you sell...

that is a very nice comment Chris, about the common sense and openness that shows the truce in the situation.

I converted most of it to bitconnectx the last bunch i couldnt i wanted to mint them in a wallet but in the stress i lost the password of the wallet what would be worth like 500 dollar is just now worth 10 dollar 😂😂😂😂 so i buy new tokens and gonna mint them. I bought them back for the dollar price of my family who i introdused to bitconnect so i lost big but not my face and integrity. I believed and still believe in bitconnect.

I feel sorry for your loss. Next time, research before investing.

This coin will get back to $200 based on coin scarcity, community and its long-running blockchain alone. "Halt to lending" and refunding of money in coin value doesn't in any damn way sound like a ponzi scheme. All these made up "lost it all" stories dont even add up. Only people who lost are those who panic sold.
The only thing i feel bitconnect did wrong was over promote. EVERY other instance has been handled very honorable.

If the Bitconnect is a ponzi scheme, then the Bitcoin is also the same.

False. No other exchange requires me to lock up my base investment for a minimum amount of time. The red flags for me were the fact that I couldn't move my money at any time for any reason, and they GUARANTEED at least 1% profit per day.....and anyone with enough experience can tell you that's impossible.

Slight correction needed 1% a day was never guaranteed there were some days when the payout was 0%
Locking up your investment for a minimum period is not unique and happens in the fiat money world as well

365% comparing to 2000% for bitcoin in a year is nothing.

There's a difference between something that you can buy and sell at whenever you want at market value (wich can go up 1000% or 50% down) and a centralized platform that PROMISED you a given return. Specially if it is this high. People see "blockchain" on it and thinks that is "just like bitcoin". BCC is not like BTC. Ripple is not like BTC. TRX is not like BTC. Take care of your money, even when you risk it

You're not considering everything with this comment. Yes, BTC went up 2000% in a year. But not EVERY DAY in that year was a green one. Getting profits on those days should've been the great big red flag being waved in your face.

Just stop. Put the keyboard away.

I'm not quite sure of the logic behind this belief, which multiple people seem to have. I'm no expert, but, from what I could tell, BitConnect was something quite different than simply Bitcoin; for one, the latter didn't lend money to people. Either wy, I actually don't think Bitconnect, can really be blamed for anything really. Yes, I "feel bad" for anyone who lost money --by the way, I DID invest a very very small sum into BCC, and then promptly withdrew it, this was all only about a week before the crash...--if only not for the fact that I know how that feels. BUT, it's no different than if I were to have lost it all on the blackjack table. I knew it was a bad idea, but I did it anyway... The casino didn't call me to come play.