I’ve never been attracted to Bitconnect for the simple reason it brings interest into the cryptocurrency world. It feels to me like fractional reserve banking all over again.
So what have they done wrong that could cause their demise? Well firstly, starting anything to do with Bitcoin in the USA is a bit of a crazy idea. If there’s one place you are going to be “regulated” out of business it will be a country like the USA. They failed to register in the state of Texas (you know, the death penalty and all that), they are being sued for fraud (this will be interesting to prove because you first have to prove that Bitcoin is even real). thirdly they failed to disclose minimum risk, which you have to do. (there are other things, but I won’t bore you with them).
So Bitconnect promises a HUGE 120% ROI, wow. For me, that starts the bells ringing, but I know some people who are achieving these returns.
So what would I do if I was Bitconnect?
Firstly – move the servers to Costa Rica,
Secondly – move me to Costa Rica.
Thirdly – tell Texas we don’t operate from the USA anymore so, you know, see you later!
But it may already be too late for them, in my view, if you have anything in there it may be time to withdraw at least until this case is over.
Seriously though, I hope in the future we will learn with Cryptocurrency to walk away from debt and interest. After all the currencies are actually real, there are only so many Bitcoins and there will be only so many.
Do I think Bitconnect is a scam, no, but the Texans may have a different view. I do actually like their website and what they offer, but on principle, I will not get involved, let’s leave debt to the banks.