Ethereum mac mismatch45 comments
Gemeos e aries combinam no amor
From my last video, I was especially surprised at the number of people on YouTube and Steemit who are still on the fence with bitconnect. Some people, who are heavily invested are defending it. I think it is hard to have a clear head about it unless we have something concrete to look at besides subjective evidences. To this point, I will do math and analysis of the BitConnect system. This is 69 days, with an average percentage paid of 1.
This is data, pulled from the system, without using reinvesting or referrals. A lot of critics of BitConnect, I will say you have not done your research and are ignorant. BitConnect's popularity is that this ponzi permits you to withdraw that money. When you go on and on about how only people who do referrals are making money with the system, while this is partially true, I have no doubt that there are pure lenders with no referrals who are sitting in the green, especially if they started in early May.
Arguing from ignorance does not help convince people. So then, what is wrong with BitConnect? Let's do the math on the data above.
A lot of people say BitConnect pays 0. The hard data above taken from their system proves otherwise. However, that loan was above 1k, which adds another 0. Many loans in the system are paying an additional 0.
Due to this, for the sake of this analysis I will just use a flat 1. Let's get to the numbers then:. There are 1, billionaires in the world , but lookout world, the infinite money machine BitConnect was invented!!! Here come thousands of people into your ranks! BitConnect then will be the system to create the world's first trillionaires in just 6 year's time Now there are days where you would not be able to compound due to the low payout on some days. Therefore, I will compound interest every 2 days for this analysis.
I anticipate a bought of hyperinflation due to the BitConnect wealth creating system! This part of the post is conjecture, but it is good conjecture because often the best solution to a problem is the easiest answer. If we want to know how BitConnect has kept this amazing ponzi operational, and how it may continue to operate going forward, this is my proposal on how the system operates. This picture shows the basic mechanic of the ponzi: The dirty little secret of BitConnect's system is that they likely never exchange your BCC tokens for dollars.
They just keep hanging onto the BCC token. This would create 2 expensive transactions for them. Furthermore, it is in their advantage never to do this exchange back into Bitcoin or fiat. If you buy 10 BCC tokens, give them to the lending bot ponzi, and the lending bot ponzi sells those 10 BCC tokens for Bitcoin, the net market affect is very minimal to the upside, but basically neutral. In math terms, we might say: This is the key to their ponzi. If only some of those tokens are sold by the lending bot, this creates a net drain of BCC tokens on the market.
People who understand economics, and the supply and demand curve, we know that if you reduce supply of something, this generally favors increasing prices. This is especially the case if the underlying asset has true demand. Demand for BCC tokens for their lending system, combined with ever decreasing supply, favors an increase in price for BCC tokens. Unlike many other cryptos that operate on boom and bust cycles, BCC has not operated in this manner.
Now I will use my original loan example, but rather than describing it in terms of USD which the BitConnect system never uses, I will describe what occurred in terms of BCC tokens which describes the reality of the situation actually happening. Now certainly, the earnings could have been withdrawn sooner, but had they been left in the lending wallet, this would be the actual situation as of today.
This means, by limiting BCC coin supply while driving more and more people to the system, this creates a drastic net-demand with ever reducing supply of BCC tokens, forcing the price of the token higher.
What this mechanism does, is that it delays the inevitable, and keeps the ponzi going far longer than it otherwise could operate if they truly held USD fiat in the lending wallet. As long as the net token supply is reduced, the BitConnect operators are content to drain some of those funds to pay affiliates and pay themselves.
Meaning, for every token invested, a certain percentage of those tokens are never resold but sit accumulating in the BitConnect system, continually reducing the supply. This gives the operators much power in terms of decision making, and legitimate traditional models of trading and manipulation of markets.
For example, it may be they have procedures on how to assist the market in going higher. If they move their bar higher, eventually people will have to pay those higher prices to get their BCC tokens into the lending system.
It could also be that they are willing to use outside pools of bitcoin to prop up prices at key moments in trading, it probably is not needed, but it is certainly doable. As an ingenious as this ponzi system is, for making it look like we are getting rich when in fact it is all due to the limiting supply of a token, there comes a breaking point in this model. There comes a juncture where compounding interest overwhelms price appreciation of the BCC token.
We need to add the initial investment to this as well. To invest 10k today, we would deposit BCC tokens. However, it would need to do better than that simply because of referrals and other payouts BitConnect internally takes. This would be needed to repay holders if everyone invested according to this behavior.
That said, if investments are compounded as many people have started doing, the situation for BCC becomes dire. Such withdrawals would be spread out over the course of another days. Therefore in the 1 year plus the days of divestment, the price of the BitConnect token would need to be: Within 7 years time then, the market capitalization of BitConnect needs to reach trillion for there to be any hope of recouping funds invested.
From this sort of analysis, we can create a financial model, to model the prices BitConnect aught to reach to have any hope of maintaining eco-system sustainability. It needs to continue this level of expansion going forward and overtake all other cryptocurrencies to be a long-term sustainable ponzi.
The growth continues on into absolute absurdity where BCC token surpasses the US housing market in 4 years. All investments entail risk.
All investments have thresholds of capital limitations. The point here is, maybe an amazing bot could produce a solid daily return. Then as it gets more and more millions fed into it, that bot will produce a lower and lower return. Then people would sell against its order, and the bot would be sitting on losses. When you invest a small amount, big things are possible, as you invest millions, your possibilities of what you can do dwindle greatly.
Orders take longer to fill, you do not get to be as nimble with your money as day-traders are. You become the wale, instead of trading off the waves the whales make. If BitConnect's bot was real, it would have started producing diminished returns due to this phenomena in trading. Rather, if anything, returns have increased, combine this factor with zero risk which a real bot does not have and we see the problem. It violates economic laws. This has occurred so their model has been sustainable.
Money invested will not be available to divest, since the BCC tokens divested will be insufficient to pay the balances of the compounded interest in the lending wallets. BCC existing does not bother me too much. The people lying about hard facts is what bothers me. There is nothing to be deceived about, math is math. US foreign ambassador for teamaustralia. Supporting teamaustralia with my upvote!
One of the best articles regarding bitconnect. The problem is people lose their judgment when it comes to earning money. Greed is very powerful. Soon a lot of people with 6 digit accounts will realize how fast money can dissapear. They are paying old people who invested in k plan before by the people who are investing now. Else they print more money to pay them.
I use bitconnect and I know it is a ponzi scheme. It was clear when I started;by now I almost got my investment back, havent compounded at all. From next week I wont even care if they go bust or not and that will be the moment I will start compounding. Anyway, if theyre going to achieve their roadmap objectives this month it will give them another boost; it is unsustainable though. Although I use it, I do not promote it at all, I dont feel comfortable with that, it's one thing to gamble my money, different thing alltogether to tell a friend to put their money in; so I am at 0 refferals.
Thanks for the math. Too bad I havent held on to the bcc I initially purchased, that would have worked out way better for me. Yeah I just realised it's way profitable to transfer all your earnings to bcc, and price is soaring now. I'm also going to stop in investing anything once my profit reaches the original investment. But I still have a month to go I'm almost there with getting my investment back; for about a week now I stopped taking the interest out as BTC and just kept it in BCC and with the soaring price that made quite a bit of difference.
I have to be honest, the site being unavailable most of the day today made me feel a bit uneasy: And no one even mention it on twitter or blog.