This review of Bitconnect reveals the true nature of one of the biggest cryptocurrencies in the world.
What is Bitconnect
The main reason why it gets so much interest is that it offers up to 40% monthly return on investment, 27.6% in average for the last six months.
These numbers are big, but even more impressive is the value of BCC, which has gone from $0.12 to $200 in about nine months, which mean 166,600%. BCC is now the 8th biggest cryptocurrency in the world, worth $1.4 billion.
So, what is the true nature of Bitconnect?
Bitconnect is a scam
Like it or not, 27.6% monthly that Bitconnect has been paying in average is a number that is impossible with any legit business doing whatever with cryptos. In the long term. Not to mention that Bitconnect adds referral percantages to this number.
It is true that Bitcoin has been rising quickly this year, but even reinvesting at the beginning of each month would not bring you this number.
And it is important to say that this year is exceptional and you can be sure that the value of Bitcoin will not rise that quickly for too long.
Bitcoin is in our opinion overvalued, because transactions are slow and expensive. Once people realize that a lot of other cryptos do the same things as Bitcoin cheaper and faster, who knows what happens…
Why BCC price is so high
The Bitconnect scam uses a clever trick. You can invest with Bitconnect only with its own currency, the Bitconnect coin (BCC). Which you have to buy using Bitcoins. So this is driving up the demand for BCC and its price.
People who want to participate in the Bitconnect Ponzi scheme have to first buy Bitcoins and then buy Bitconnect coins.
Illegal investment scheme
And finally you should also realize that Bitconnect is collecting money from the public and paying interests. It means that it is providing financial/investment services, which is a regulated activity in most countries and it requires a licence.
But Bitconnect is totally anonymous, they don’t provide any information about the entity that is running it, no contact information, no regulation, nothing.
And you pay them in Bitcoins, so they will remain anonymous even after Bitconnect collapses.
Bitconnect is a Ponzi scheme that will collapse sooner or later. The returns it is paying are unsustainable in the long term.
If you want to see what profits are real in cryptocurrency trading, try a free demo account with a regulated broker.
You will see how difficult it is and that you need a proper strategy to achieve real profits.