Why Bitconnect might be a Ponzi scheme afterall

bitconnect

There are very many reasons you will want to invest in Bitconnect. The reasons are not far-farfetched. But just so you know, you might just be getting into a Ponzi scheme that you might regret getting into soon.

For many months on ending, Bitconnect has seen a surge in its value because of its promise to give any investor who buys the digital currency up to 40% return on investment. That right there is a red line that must not be crossed as far as a genuine digital currency is concerned.

Even as ‘prestigious’ as Bitcoin is to the digital currency world. no one markets Bitcoin as an investment but a digital currency that can serve as a store of value and because it is gaining more confidence within and out of the crypto-community, its value against all major fiat currencies has skyrocketed by more than 5% this year.

This feat was not achieved by any company promising anyone any return on investment. On the flip side, Bitcoin was misconstrued as an investment because of the fact that its value has in the last five years been strengthened against other currencies, so it tends to be seen as a good asset to own. However, Bitconnect with its proper blockchain ledger has in the recent time unsettled many people.

Various figures in the community have started raising an alarm that it is not different from OneCoin or even Bitpetite, two of the most scathing Ponzi schemes that has since taking away nearly billions of dollars from their investor.

The company behind Bitconnect claims to be in the business of margin lending and cryptocurrency lending for other digital currencies. So in actual fact, people are paid based on the slice of the company’s share they own and not based on the actual trading price of Bitconnect.

To really unravel why Bitconnect might not be genuine, financemagnates.com gave an analogy, see below:

“For instance, if someone invested 1 BTC when the value was $3000, on paper he might have rewards, but if he decides to withdraw his funds, he will only receive his initial investments that too in BitConnect coins. Meanwhile, BitConnect would have kept the Bitcoin whose current market value is over $7000”.

Perhaps as a sign that something might not be right, after all, the market capitalisation of the digital currency has since plummeted on Coinmarketcap due to a technical recalculation of its total outstanding token. Coinmarketcap has since stopped recognising its tokens which are recognised as loans. The market capitalisation has dropped from $2 billion to mere $582 million. This is a fact you should consider before going further.

There is a consensus that the only ‘saving grace’ Bitconnect enjoys is that it has a blockchain ledger. Despite that, its mathematically-unrealistic investment returns are not only scandalous but outrightly ridiculous.

It might interest you to know that Bitconnect is not the only digital currency that has a ‘question mark’. There are other cryptocurrencies that you will end up holding a dummy.