Bitconnect has divided opinion in the community with some loving the platform and the huge returns it offers whilst others stating it must be a scam. Whilst it undoubtedly offers very tempting returns, if you are to put your hard earned money in the platform then proceed with caution and invest only money you can afford to lose.
Ease Of Use
There has been quite a lot of hype surrounding BitConnect.co. Its proponents claim it represents an outstanding opportunity to earn real money from the cryptocurrency boom. Its opponents suggest it is looks like the brainchild of a 21st century Charles Ponzi. Let’s find out the truth about BitConnect in this review.
What is BitConnect?
It is a company in the Multi-Level Marketing (MLM) game that claims you can earn a monthly ROI of up to 40%! The entire company revolves around BitConnect Coin (BCC), which its own form of cryptocurrency. According to the site, there is 6 million BCC available right now, and the maximum limit is 28 million; this limit will be achieved via a mix of mining and minting.
The BIG problem with the site is the lack of authenticity. There is no information about the founders on the website. The domain name was registered on February 9, 2016, but you won’t find much else in the way of BitConnect information. Since it is asking you to invest money, this is a giant red flag right away.
How Does BitConnect Work?
While some sites in this niche offer different products, the only way to make money on this site is via BCC. You can lend, trade, mine or simply purchase BCC in the hope it increases in value. For the record, on November 20, 2017, each BCC was worth $288. Here is a closer look at the three ways to make a profit from BCC:
Coin Supply Channel
According to the site, an additional 2.6 million BCC will be mined at a rate of 10 BCC every two minutes. Another 20.4 million will be added via BCC Staking. The minting process will take place in six separate blocks of six months; it began in January 2017 and will end in December 2019.
The first ‘block’ of interest is 60%, and it drops to 10% by the sixth and final block. We would like to say that the site is guilty of some ‘funky’ mathematics. 10 divided by 6 is NOT 1.4! Incidentally, you only begin receiving minting blocks when you hold your BCC stake for at least 15 days; your stake weight dictates the frequency with which you receive the blocks.
Coin Demand Channel
This involves investing in the lending or staking of BCC. The lending process works as follows:
• Deposit Bitcoin into your BitConnect account after you register.
• Purchase BCC from the exchange.
• Lend it on the BitConnect dashboard.
• Earn profit each day as per volatility software interest.
When you lend BCC, you profit from its trading bot and volatility software and receive this profit on a daily basis. The amount depends on your investment option which you can see on the following screenshot from the site.
You can reinvest your returns into the lending platform again or transfer the US Dollar wallet balance and receive BCC at the current market price.
Staking involves the following:
• Deposit your Bitcoin.
• Purchase BCC from the exchange.
• Transfer your BCC to your Desktop Wallet.
• Hold it for 15 days to start gaining interest.
The interest rates are as follows:
You can end the staking process at any time and send your BCC with interest to your web wallet or the exchange platform. BitConnect claims that it is possible to earn up to 120% per annum via PoS minting.
Coin Distribution Channel
This option involves trading BCC on the website’s exchange platform. If you go to that part of the site, you’ll be greeted with a chart that looks something like this:
BitConnect & its Referral Scheme
At its heart, BitConnect is all about affiliate marketing, and you can only profit by investing in BCC yourself and by convincing others to get involved in this investment opportunity. This is where the entire ‘Ponzi Scheme’ accusation comes from because it has a very ‘Pyramid’ vibe.
The more money invested by the people you refer, the greater your bonus. The bonus scheme has changed recently. It originally consisted of 11 levels ranging from 0.01% to 7%, but now, it features just three tiers of commission: 5%, 3%, and 2%. We currently offer this 5% commission back to you if you register on Bitconnect with us as your sponsor, you can find out more here.
When you go through the rest of the site, it’s a case of ‘nothing to see here.’ There are no goods or services available, so the only thing you can do is purchase BCC and make money from affiliate membership. In general, retail sales is a must in the MLM world so if there are none on offer; it is a worrying sign.
The only way to make money is by putting Bitcoin into your account and using one of the investment options we outlined above. There is a major push towards getting customers to refer others, and you must invest an initial fee of anywhere from $100 to $100,000.
Is Bitconnect A Scam?
The last thing we wish to do is label any site as a ‘scam’ without adequate proof, so we are not going to smear BitConnect in this manner. However, we are very concerned about a lot of things we found:
• The lack of goods & services on offer.
• The suspiciously high ROI of 40% a month.
• The complete absence of any information on the founder of the company.
• The multiple instances of poor spelling, grammar, and basic mathematics skills (read the site, and you’ll know what I mean).
• The messages at the bottom of the site’s pages which look like they may have come from bots.
If you want to get involved in the cryptocurrency craze, there are a lot of legitimate platforms out there where you don’t have to invest in BCC! The trouble with exceedingly high ROI claims is that eventually, the company won’t be able to make these payments and the entire thing will fall flat.
As Bitcoin is essentially untraceable, if a collapse happens, your money is gone forever, and you won’t know who took it. Finally, BCC is worthless outside the platform as there is nowhere that transacts it outside the BitConnect site. We believe you should steer clear of BitConnect and save your money for something better.