Is BitConnect a scam? Let us find out

Is BitConnect a scam? Let us find out

Almost everyone is talking about cryptocurrencies nowadays. You must have read about people investing in BitConnect and getting high returns. There are videos on YouTube advising people how to use it to earn handsomely. You have probably heard of many people called BitConnect a scam. This has made people get skeptical about cryptocurrencies and some of them are refraining from it.

BitConnect — things you should know

Many people are eager to know whether BitConnect is safe and really generates a good return. Let us go over BitConnect and its business proposition so that you can make an informed decision.

First, let us differentiate between BitConnect and the BitConnect Coin or BCC. By BitConnect we mean the lending side and BCC, it is the coin or the value token.

BitConnect is similar to Bitcoin. Like Bitcoin, it is an open source peer-to-peer based model that deals with cryptocurrency. However, you cannot trade with BCC. You have to purchase Bitcoin and use it to get BitConnect in exchange. You are eligible to lend out Bitcoin and act as your own bank.

BitConnect conforms to Proof of Work and Proof of Stake, unlike many cryptos. This makes it safer and reliable for people.

Making money from BitConnect

The most interesting aspect of BitConnect is earning money from it. As we have mentioned earlier, you have to buy Bitcoin and exchange it to get BitConnect coins. You are also eligible to lend and invest your coins and the company promises you daily profits. Mining is also possible with BCC. The referral service looks like an MLM method due to its pyramid structure.



Is BitConnect a scam?

Now comes the most vital part. Most people are worried about it being a scam and there are definite reasons behind their doubt. Here is our take on it so that you can be careful about investing in it.

Wwith a lot of spelling and grammatical mistakes, the site looks very unprofessional. At least it did until they realized many people online were pointing out their websites faults. You must agree that all companies should take care of the content published on their sites. Badly written English doesn’t speak well about the intentions of a business.

The videos don’t give true information — In most of the videos, the people are eager to share how they are earning from BitConnect without revealing the method. They simply highlight their lavish lifestyle to entice others to join BitConnect.

Shady tactics to earn money — It is required to keep your BCC confined for at least 4 to 10 months. Although BitConnect assures that its trade bots ensure a high return on the investment even in case the prices drop, there is no guarantee for that.

Guaranteed returns sound fishy — Investment are a volatile field and no one can guarantee a return here. However, the way BitConnect promises the high return sounds fishy. The SEC has also taken the time to write about guaranteed investments and how you should be wary of them.

Exchanging BCC with Bitcoin — You cannot buy BitConnect directly with your fiat currency. You have to get Bitcoins and exchange them to get BCC. You have to give away the BCC to get a return. What if you do not get the original amount back? This system shows that they don’t have confidence in their own currency.

The Ponzi-style of operation — BitConnect operates like a Ponzi system. In case the company closes down, you cannot claim your BCC which is locked in trading.

Keeping all these factors in mind, we would request all to check meticulously before investing their money.

Read the original article here.

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