What is Bitconnect?
NOTE: Be wary of Bitconnect. Many users have brought up the theory that Bitconnect is a ponzi scheme due to its nature.
BitConnect is a cryptocurrency initially posted on BitcoinTalk November
- What the BitConnect service claims to do is take your Bitcoin, immediately convert that Bitcoin into Bitconnect, and then pay you interest from their earnings with their trading bot that makes automated traders. It’s important to note that the interest for users is paid back in Bitconnect, and not Bitcoin. The interest rates that Bitconnect is able to achieve is significantly higher than nearly any other service out there that pays interest. Several users have reported online that they average about 1% every day of interest from Bitconnect.
One very, very, important aspect to note is that Bitconnect has no whitepaper whatsoever, and the technical aspects of how Bitconnect works or even who or what exactly is behind Bitconnect is lacking in information. Due to this lack of information about Bitconnect, many people within the cryptocurrency community have the idea that Bitconnect is, in fact, a ponzi scheme. In order to receive interest off of Bitconnect, one must stake their coin for a minimum of 15 days. Some users have reasoned that this lockup is on purpose so that more users can go into Bitconnect, bringing in more money to allow payment of older users in the Bitconnect system. Furthermore, Bitconnect claims that the interest that it pays to its users is completely risk-free. This is highly suspect because users reporting 1% interest a day would earn 365% a year. Furthermore, Bitconnect has a referral program that incentivizes its users to bring more users to Bitconnect by giving you a higher percentage of interest daily.
According to the Bitconnect website, BitConnect is based on a Proof of Work (PoW) algorithm called scrypt. After PoW completion on 262800 blocks, the entire blockchain work based on PoS algorithm will have incentive as stake interest. Here is just some more information about Bitconnect, the time you have to stake before earning interest, etc.:
- Maximum coin supply: 28 million
- PoW blocks: 262,800
- PoS coins: 20,4 million
- Block spacing: 2 minutes
- Minimum Stake age: 15 day
- Maximum Stake Age: 90 days
- November 15, 2016: Bitconnect launches
- January 2017: Bitconnect is released as open-source software.
- October 8, 2017: Bitconnect surpasses $1 billion in marketcap