BitConnect is one of the most debated cryptocurrencies of the last quarter.
Bet, you also heard about it or even planned to give it a try…
On the one hand, it is palatable option for investment, on the other it is a chance to get ripped off…
I believe that blindly tagging BitConnect neither a Ponzi scheme nor a legit business won’t clear things up.
So I decided to analyze all the open access information about BitConnect as detailed as possible. Also I’m constantly updating this guide, so if you’re looking for timely info on BCC –
look no further!
I do hope this information will be helpful for you, so let’s do it!
- Company websites
- Social network profiles
- BitConnect Coin
- Is it a Ponzi scheme?
1. Company websites
First, let’s look through the available information about the company BitConnect and its websites.
snapshot from web.archive.org
Whether the owners reprofiled to blockchain developers, or it is a simple coincidence – will remain a mystery. One way or another the website as we know it appeared in 2016:
screenshot from bitconnect.com
Besides, the company owns a number of other websites.
Their domain bitconnect.co was registered on 2013-12-29, i.e. it exists almost 4 years. Nevertheless, web.archive.org shows that the website is active only from the end of 2016. This allows to suppose that it took 3 years to prepare the project before release.
screenshot from bitconnect.co
Whois data of this and other company’s websites is protected. On the one hand, it can show that the company tries to avoid legal liability, on the other NameCheap helps to hide whois data for free and most of the users take advantage of it. All in all we don’t exactly know who is Satoshi Nakamoto, but it didn’t stop the market cap of Bitcoin to reach the 90+ bln dollars mark!
There is a separate BitConnect website and local communities for BitConnect, which exist approximately over a year:
- https://bitconnectvn.com/ – Vietnam
- https://bcckorea.co/ – Korea
- https://bitconnect.in/ – India
- https://bccindonesia.co/ – Indonesia
Although, based on the site footer they plan to launch sites for Japan, Thailand, Cambodia and Philippines, what indicates the tight roadmap of the company.
bitconnect.co coming soon sites
2. Social Network Profiles
My logic is simple: if BitConnect has thousands of investors and $1.5+ bn capitalization, it simply can’t have zero followers! That’s why let us look at their social media profiles:
Twitter – 11K followers
YouTube – 3.8K followers
Facebook – 1,148 followers
The data shows, that BitConnect has a sufficiently large community. What should be taken into account is that the majority of users don’t follow such channels as a rule. On the contrary, nobody has cancelled the opportunity to cheating with bot subscribers.
- Mobile applications were developed for both iOS and Android.
- There are wallets for Mac, Windows and Linux.
This is why I don’t care about poor grammar on site: development is hundredfold costly comparing to text proofreading.
The company invests in development, what indicates medium- and long-term intentions.
Looks decent for me.
4. BitConnect Coin
At the time of writing capitalization of the currency reaches $1 600 000 000.
BitConnect Coin is one of the top 10 cryptocurrencies by market cap.
Needless to say that the capitalization growth resulted in BitConnect Coin deflation.
Current price for 1BCC is 196$. Since April 2017 the price went up 10x!
BCC price and capitalization chart from coinmarketcap.com
Here’s a current BCC data taken from CoinMarketCap
Such capitalization and price gain of the BitConnect Coin is a supporting point, that it is not a scam.
Also BitConnect Coin can be traded on trusted cryptocurrency exchange sites: livecoin.net , novaexchange.com and coinexchange.io which is a clear trust indicator for me.
BitConnect market cap has sufficiently dropped on November, 2. This fact along with rumors about BitConnect closing by UK authorities resulted in BCC price drop. But currently BCC price is stable and keeps growing.
I’ll keep you updated, but at the moment everything is stable and system keeps bringing profits.
If you look at BitConnect’s interest chart on Google Trends, you can see a clear correlation between interest in currency and its price/capitalization.
Google search interest chart of “BitConnect” via Google Trends
…and here’s a correlation itself:
You don’t have to be a market technical analyst to see a clear connection: the more people see it’s working, the more are willing to join..
It is also interesting to trace the trend of the “BitConnect scam” request.
Again, the clear correlation with the main request is obvious. Peaks of popularity of the given request align not with news about the system failure, but with the popularity peaks or the main request. Everything is quite simple: the more frequently people explore the system, the more frequently they suspect and question it.
People trust but verify.
No signs of scam here.
6. Financial Pyramid or Not?
BitConnect offers a lending investment opportunity, which is a hot-button issue on the net: if it is a Ponzi scheme or not.
Let’s recall, what Ponzi scheme is (SEC.gov):
red flags of a Ponzi scheme from sec.gov
And now let’s write out pros and cons.
|Ponzi scheme||Not a Ponzi scheme|
|Every cryptocurrency can turn out to be a pyramid.||Starting price is only $100, while the first indication of a pyramid is high down payment.|
|They promise up to + 40% return per month, what sounds too good to be truth.||There is no guaranteed income rate. In practice it floats from 0% to 1% per day.|
There is a referral program – strong indicator of any pyramid.
There are many grammar mistakes on the website. In addition, the fact, that the system is popular in such countries as Vietnam or Cambodia is no excuse.
Payments can be received without any referral program. Affiliate program brings only bonus points, which can be withdrawn with a single click.
There is a great amount of websites, applications and plans on development of new BitConnect communities.
The most important pro
Cryptocurrencies are a new trend. While they bring fundamental benefits, they also compose a poorly studied branch. That is why you can lose everything while pumping into cryptocurrency. Even one of the oldest and the most safe funds satoshi.fund was hacked.
The most important con
The size of the starting investment is very low only 100$. You can easily withdraw profits to your BCC wallet starting from the next day after initial investment.You get quick and transparent results.
Always remember about risk-return tradeoff:
The higher profitability is, the higher the risks are!
That’s why you should treat BitConnect like any other asset and take an unbiased look at your own capabilities and limitations.
If you want to invest your last money in BitConnect, I will slap you on the wrist, because it is a great risk!
But if you understand all the risks and want to add a high-performing asset to your portfolio, then BitConnect is a good alternative.
I believe that with clear thinking you can make a decent buck investing in BitConnect.