Before we get started, let’s first define these terms in the title. According to the Merriam-Webster dictionary, a scam is ‘a fraudulent or deceptive act or operation’. A Ponzi scheme is defined as ‘an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks’, while a pyramid scheme is, and I quote, ‘a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants’.
We face these deceptive practices regularly, through, for example, email, web advertising, stock offerings, ICOs, and even governments (The Social Security pyramid? Hmmm?!)
What motivates people to fall for these schemes is greed, pure and simple. If we can make a disgusting amount of money with no more effort than exhaling, we’re in. Like buying a ticket for the half-a-billion-dollar lotto, we pay for the dream, and walk away a little poorer. Sometimes, a lot poorer. Thus, after getting burned a time or two, we become cynical and suspicious of anything resembling these schemes.
Now, let’s take a careful look at BitConnect, the system I’m promoting on this site. On social media, there have been a slew of negative comments declaring this a scam, a Ponzi, and a pyramid scheme. After all, anywhere you invest and receive a guaranteed payout of nearly 1% a day, doubling your money in a few months certainly sounds unbelievable…kinda like brie on a mousetrap. So, let’s see if any of these terms apply.
A scam…is BitConnect fraudulent? No. It has continued to pay out virtually everyday for the last year; people have receive both their profits and original investments back as stated; and the method BitConnect utilizes, that of a volatility-based algorithm tied to Bitcoin and currencies is a feasible process for generating high profits.
It is deceptive? No. The process, requirements, and results are clearly spelled out on their website.
Is BitConnect a Ponzi scheme? No. A Ponzi requires profits to be generated by new investors coming into the business whose funds are paid to the early investors. BitConnect profits are generated outside of the pack of investors, and are paid based on investor funds that are lent to the ‘bot’…the more funds invested by a given investor, the higher the return. Early and late investors benefit equally.
Is it a pyramid scheme? No. This requires heavy promotion and the need for each investor to introduce new investors to the business. BitConnect does not require any investor to ‘build their downline’ (though there are financial incentives to introduce others who sign up under you as a sponsor.) You will still fully benefit from your individual investment, and its growth is not hindered in any way.
There is still mystery based on very strong privacy matters that surround BitConnect, its system, and its employees which may raise doubt in the minds of some. However, because of its stable track record to date, benefiting their investors with consistent profits, sponsored gala functions, and additional financial incentives, BitConnect is a worthy business to invest in, in the opinion of this writer.