The BitConnect Coin (https://bitconnectcoin.co/) is another entrant to the alternative cryptocurrency market. As a relatively young participant in the race towards market dominance and widespread practical use, this alternative investment is speeding onwards and leaving quite a few competitors back.
However, the cryptocurrency community is also looking at BitConnect Coin with quite suspicious eyes. There are accusations of the structure being similar to Ponzi scheme or a Pyramid MLM network. These serious allegations were bought about when the people behind the BitConnect Coin are not publicised.
The supporters, of which it is interesting to note that most are located in Southeast Asia, claim that it is legitimate and that they are receiving interest properly. They claim that the main attraction of BitConnect Coin and of the cryptocurrency market in general is its anonymity and trustworthiness. They claim that they those who are complaining are the naysayers and the envious ones who are mad that they are late to the party.
There are a lot of things to say and unpack about this new cryptocurrency. So many questions are being asked. How does this cryptocurrency operate? Who mines, buys or uses BitConnect Coin? Why does the symbol it uses be so near to Bitcoin and Bitcoin Cash? How does it add value to the blockchain ecosystem? Why the sudden jump in price and the aggressive marketing strategy, especially in Asia?
But before we judge BitConnect too kindly or justly, let us talk about how it came to be and what it claims to do. This is the Quick Guide to BitConnect Coin.
Introduction to BitConnect Coin
All this hullabaloo about BitConnect Coin started on January 20, 2017, when it was released with the price of .162 at the cryptocurrency market. Before that, Bitconnect was launched on November 15, 2016. Like Bitcoin, the expected maximum supply of this cryptocurrency is 28 million BitConnect Coins while total volume supplied right now, September 21, 2017, is at 7,778,710 BitConnect Coins. Current Market Cap is at $792 million.
In simpler words, BitConnect is more like Bitcoin rather than Ethereum, as it is more used as a financial instrument rather than a useful technology for execution of smart contracts or recording and validating digital assets.
BitConnect Coin is decentralized altcoin, which is open-source and works individual to individual. They claim to be the ‘Cryptocurrency revolution’ as they will help people live their dreams by making a lot of people rich enough to buy Ferraris, cruises and other expensive stuff.
One interesting thing to note, the people behind BitConnect Coin are still unknown. You will not know who are the Board of directors, executives, main developers, legal counsel and other key personnel. Imagine not knowing who are at the helm of the company, who has more than 70% of the total unmined reserve BitConnect Coins. You cannot find anyone listed individually as the owner of their website. While anonymity is one of the great attracting force, the siren song, of blockchain and cryptocurrencies, BitConnect Coin is the exception to that rule.
The reason for this is BitConnect Coin’s competitive advantage among the rest of the cryptocurrency market.
BitConnect Coin’s Specialty
Ethereum has its practical applications and focus on helping the financial market deal with the people from compliance by making data both private and public.
Neo has its dBTF technology, flexible maneuverability with its language being lower-level, meaning people who can do C++ can also use Neo. This is one of the reasons why Microsoft collaborates with them.
Bitcoin has its own perceived legitimacy and widespread use, making it the ‘fiat’ cryptocurrency where the term fiat is deemed as a heresy.
What does BitConnect Coin have?
Regarding the trading value, the highest price BitConnect Coin had been is $142.80 on September 2, 2017. That is a big jump from the opening price of $.16 on January 20, 2017.
Even before the BitConnect Coin being traded to the high heavens, the main purpose of this cryptocurrency is that it guarantees an interest rate.
This is how the loaning of BitConnect goes. If you loan them an amount between $100 to $1000, you will have your interest back after 299 days, plus have profits of up to 40% per day, depending on the volatility between the prices of Bitcoin and BitConnect Coin.
BitConnect advertises that their interest-bearing asset can give at least 120% return per year, and the more you invest, the bigger the payout.
In order to do so, you need to have some Bitcoin deposited first. You then buy Bitconnect Coin from the BitConnect Coin Exchange. You then prepare your BitConnect Wallet. After that, you start staking your BitConnect Coin in the wallet, and then have the system confirm the transaction. You can then lend or invest the BitConnect Coin. This way, your capital cannot be moved or taken out but you will get daily payouts in USD, which you can then loan again to BitConnect.
That certainly can grab anyone’s attention, although it can be with greed or with fear.
But that is not all.
BitConnect Coin also has an affiliate link program, where you get commissions on how many referrals and how much each referrals lend.
According to the website, the people you refer will give you a referral bonus, up to 7 levels!
What this means is that you will get 7% commission every time your referral lends to BitConnect. For the first downline, you get 7%, second level, which the first downline of your first downline, you get 3%. With the level 3 and level 4 downlines, you get 1%. For Level 5, you get .5%, for level 6, you get .3% and lastly for level 7, you get .2%.
Does the structure look familiar?
It really looks like a pyramid, with the ones below feeding the ones on top.
Of course, we will not put judgement yet. The affiliate program started around August 2017 and has been gaining much traction, especially with bloggers, youtubers, and social media enthusiasts.
How would they be able to give such big interests, commissions and bounties? Is it sustainable for the long run?
What they claim to be their sustainable secret is their proprietary trading software. This trading bot will, without fail, take advantage of the volatility of bitcoin and the difference, and will also give part of the earnings of that day to those who lent their BitConnect Coins. With the BitConnect Coins locked to them, they can confirm the price and stability.
That is what they claim.
One thing is certain though BitConnect cryptocurrency can really grab the attention of the investors.
Where and How to Buy BitConnect cryptocurrency
To take advantage of their investing scheme, you will have to buy from their specific exchange. They have the BitConnect Coin Exchange, or the BCC Exchange, to do that.
Other exchanges do offer to trade BitConnect Coins, but if you are more of an investor for the long haul instead of a trader, then the only way to get BitConnect Coins that will give daily interest will be through the Exchange. That is actually a very ingenious way to control volatility. You will give incentives to those who will not take new positions. This will give BitConnect a bit more stability compared to others.
However, Bitforex and other major cryptocurrency exchanges do offer BitConnect Coin in their listing.
An important reminder though, due to them being similar, people sometimes thought that they are buying Bitcoin Cash rather than BitConnect Coin. This is due to them having similarities of the way they are named. BitConnect Coin is BCC while Bitcoin Cash is BCH. Quite a number of articles explained why, especially BitConnect Coin itself.
Some of the other exchanges that you can buy BitConnect Coin are
You can check out this video that provides the steps to purchase BitConnect Coins.
What are the wallets for BitConnect Coin?
There is really only one wallet for you, and that is the official BitConnect Coin Wallet. While other wallets might accept BitConnect Coin, it is not clearly stated what will happen if you do; some wallets will not accept those and will make you lose your altcoins!
Better to be as safe as you can and just use the BitConnect Coin wallet itself.
How to Mine for BitConnect Cryptocurrency?
Anyone can get BitConnect Coins, either by ICO, Initial Coin Offerings, and through mining it.
The last ICO was for 46 days, which began on November 15, 2016 and ended at December 31, 2016. A total of 4.8 million BitConnect Coins were offered.
As for the mining aspect, it is similar to bitcoin but also has some distinct differences.
For the proof-of-work mining system, you will need to download the wallet first. This is a very critical step and if not done, chances are you would have wasted the time and the opportunity to earn BitConnect Coins. After installing the wallet, you can go directly mine. Interesting difference from Bitcoin is that you can mine using the CPU or the GPU, unlike Bitcoin that uses an ASIC miner. You will then configure the mining application. You also have the option to pool with other miners.
For the point-of-service mining system, you still need to have the wallet installed. You then hold these BitConnect coins in the BitConnect-QT wallet. It is recommended to encrypt it with a password. You can then unlock your BitConnect-QT wallet. Once unlocked, it will start the mining status.
Anyone can do both, but one thing is absolutely necessary. The BitConnect-QT wallet must be installed. It is actually pretty simple and straightforward so there should be no problems with installing that.
How does the BitConnect Coin work?
BitConnect Coin is an interesting study about financial securities. It is traded like you would trade a stock or a share of a company.Iit is also a relatively sustainable investment that bears interest, similar to bonds. It is also at the same time very volatile and quick, very much like a money market or a repo security.
For traders, this Cryptocurrency has great volatility. This is helped by the internal ecosystem, with BitConnect making big practical demand for BitConnect by asking people to lend it back to them.
It is actually a mix of all the three, and it is doing quite well, both as a traded cryptocurrency, and as an MLM affiliate. A lot of youtubers and bloggers are doing aggressive marketing, coupled with BitConnect Coins marketing events themselves.
What is the BitConnect outlook?
There are a lot of similar questions about BitConnect Coin. How do they make their affiliate program and daily paying of interest sustainable? Do they create something out of nothing? Are they pulling a rabbit out of the magician’s hat?
If you take a look at it, without bias, the BitConnect Coin ecosystem is interesting. It looks like a snake trying to eat itself, but with the snake getting larger and larger.
Why? Because BitConnect is the one adding fuel to the fire, and it is a slow burn.
They do not give out the names of the key personnel making the decisions for BitConnect. They do not give out their trading bot to be scrutinized. Their affiliate marketing system is shaped like a pyramid. Why do you even need an affiliate marketing in the first place?
There was a cryptocurrency scam which was Ecoin Plus, where no product or service was offered, no mention of key personnel and no proof of handling funds or securities were given to the public. This sounds really familiar. What other Cryptocurrency is not transparent enough and gives differing rates that do not seem to be sustainable?
People always told me that if it is too good to be true, then it probably is.
What do you think of BitConnect Coin? Let me know in the comments section. If you liked this article, please feel free to share it on your social channel with your friends.