Is BitConnect a Ponzi Scheme? Check Out 7 Obvious Red Flags!

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Is BitConnect a Ponzi Scheme? Check Out 7 Obvious Red Flags!

The value of BitConnect has been over $2 billion. Thousands of people are promoting it online. Everybody is talking about it.

There’s a huge buzz around BitConnect at the moment. Nobody knows how long will it last and many people are asking, “Is BitConnect a Ponzi Scheme?”

In this article, you will get a brutally honest answer to your question. I am you will find this helpful and valuable. You shouldn’t invest a single BitConnect until you have gone through this texts.


Is BitConnect Legit? – Video Review

I know that some of you prefer watching a video rather than reading a text. I created a BitConnect video review so you can take a look at it below. I’m sure you’ll find it helpful and valuable.


BitConnect Review

Name: BitConnect

Launched: 2017

Type: Systems That Look Like Ponzi Schemes

Short Review: My advice is to stay far away from BitConnect and tell all your friends to stay away as well. There are tons of red flags that why the system seems extremely suspicious.

Take a look at My #1 Recommendation for making money online. That method has worked for +15 years and it’s a proven way to make money online. It also helped me to become a full-time online entrepreneur.


Bitconnect Homepage

Bitconnect Homepage

What Is BitConnect?

BitConnect company tells that it is “an open source all-in-one bitcoin and cryptocurrency community platform that provides multiple investment opportunities and education.” That sounds pretty good at first.

But as you probably know, tons of experts and online entrepreneurs are saying it’s a Ponzi scheme and a scam. Let me show you 7 red flags of BitConnect.

1.Huge Promises – “If It’s Too Good to Be True…”

The old wisdom says, “If it’s too good to be true it probably is.” That’s accurate in most cases. I don’t it’s always true because I have found some opportunities in my life that were much better than what I expected. Still, in 95% of cases that wisdom is accurate.

Especially, if somebody promises you lots of money/high returns without risks or without working hard. In 99,99% of cases, it’s just a lie.

Take a look at what they promise on BitConnect. I’ll explain then what it means.

is bitconnect a ponzi scheme

In BitConnect you are supposed to lend money to the company because their trading program will make more money and pay you big dividends. They say that you’ll get returns up to 40% per month (+ daily bonuses). They have also claimed that the bot can make even 1% profit per day on average.

1% doesn’t sound a lot but it makes 365% profit per year so you’ll start to realize how huge thing they are promising to you. That sounds like an outright lie. I’ll explain later why it’s pretty obvious why that it can’t be true.

2.BitConnect Pyramid Scheme-ish System

BitConnect has also a referral system up to 4 tiers. It means that members of BitConnect earn money by inviting more people to the system. They also earn money from the people that their referrals’ referrals invest.

Let’s say that you invite Jack and he invests money to BitConnect. You earn a little commission. Then Jack invites Jay and he also invests money. You earn a little commission again. Jay invites his friend James and he also puts some money to BitConnect. You still earn some commissions.

This model is probably familiar to you from multi-level marketing programs. There’s nothing illegal about it but as we know, it creates a pyramid and people who are on the top earn the most money.

This also gives a big incentive for current members to invite new people to the system. They make money for that. I could, for example, join BitConnect and start promoting it on this site. I get tens of thousands of eyeballs every moment to my site and all of them are interested in making money online. You can quickly imagine how much money I would make by promoting BitConnect. 😉

But I don’t promoting anything that’s shady even it would make me tons of money. Integrity and honesty are always more important than money.

bitconnect Pyramid Scheme

People who recommend BitConnect for you, are looking for profits. They try to take advantage of you!

3.How Does Bitconnect Bot Work?

So, their bot makes up to 40% profit per month, right? Now I would be interested in hearing how it works. Because if you could create such a bot, you would quickly become the richest person on planet Earth.

One famous person actually promised publicly to give $100,000 right away to a person who explains to him how BitConnect bot works. That would be just a small amount of money for that kind of bot. This person clearly knows that it’s impossible to create a bot that would consistently make 1% profit per day in the long run.

It’s interesting that Bitconnect uses so much time on marketing, advertising, explaining the referral system and to all other stuff but they don’t bother explaining how their bot works. Of course, they wouldn’t need to tell details but at least some principles would be necessary.

Okay, let’s imagine that they have such a bot and it would be legitimate. The next chapter explains why that idea is impossible.

4.Is Bitconnect Legit? If It Would Be Then…

They wouldn’t give it to you.

Imagine that you created a bot that makes 1% profit per day. Would you try to make it public, collect money from small investors who can invest $100 per person and so on?

If you really have a bot that makes 1% profit per day, you would go to a bank, to a rich investor and ask for a big loan. They would give you a loan for 100% sure if you really have a bot that makes so good profits. I would invest all my money to such a bot because I would know that I would get big returns fast.

Let’s say that creator would find a couple of rich people and they would invest $1 billion in total to this bot. They would make their money back in a short while so the investment would be great for them and for the creators as well.

But as we see, the creators of a bot (if it even exists) didn’t do like that. Now they go to find people from all over the world. Then need to find 10,000,000 people who invest $100 to get the same $1 billion. That doesn’t make sense if they really would have a bot that makes good profits.

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5.Reliable Cryptocurrency Experts Say It’s a Scam

There are (roughly) three kinds of “experts” and online entrepreneurs on the Internet:

  1. People who really provide good value and information.
  2. Fraudsters who just promote their own programs to maximize their own profits.
  3. People who just know what they are talking about.

When we are talking about BitConnect there are lots of people who promote it on their YouTube channels, Facebook accounts, Snapchat and so on. However, those are the people who are usually known for other pyramid schemes and suspicious systems.

I heard about BitConnect for the first time from a lady who has been (and is still) promoting several suspicious “make money online” systems. I know that some companies that she is promoting are pyramid schemes.

When you listen to opinions from honest online entrepreneurs and cryptocurrency experts ALL of them say it’s a scam or something similar. What kind of message does this give to you?

6.”It Can’t Be a Ponzi Scheme Because It’s Already $1 Billion!”

bitconnect ponzi scheme Bernie Madoff

This person’s Ponzi scheme was worth over $65 billion.

Do you know who is the person in the picture above? He is Bernie Madoff. The creator of the probably the biggest Ponzi schemes ever. It was worth over $65 billion and collapsed in 2008.

Bitconnect is already worth $1 billion but it doesn’t mean that it would be legit. There are several reasons why people still would invest money on Bitconnect even though it was a Ponzi scheme. Here are the most typical reasons:

  1. Some people are so greedy that they want to invest in it even though they know it’s a Ponzi scheme. They know that the value will keep on rising for a while until it collapses. They invest, take the profits and run to the hills without any moral.
  2. Some people don’t make enough research and they don’t really understand where they are investing in. Maybe some of their friends introduced the system to them and it sounds nice.

7.How Long Has BitConnect Been Around?

BitConnect was launched in January 2017 just before a huge cryptocurrency boom that took place in the Spring.

As we know, Ponzi schemes will always collapse sooner or later when new individuals stop coming in. When the owners can’t pay high returns for the old members, the system just crashes. Then everybody realizes, at last, it was a Ponzi scheme. However, sometimes it can take time if more and more people keep on coming in.

If BitConnect would be an old company with decades of experience, we could probably say that it’s not a Ponzi scheme. I don’t know any Ponzi that would have lasted for decades. But BitConnect is still a very recent thing. That fact doesn’t build trust in my eyes.

You probably remember Madoff’s fraud. It lasted for quite a long time until it finally went down. The same can happen to BitConnect. It can be there for a while but if it’s a Ponzi scheme, eventually the system will just collapse.

bitconnect ponzi scheme graph

Ponzi schemes go usually rapidly up in value until they finally collapse.

+ Bonus Reason!

Where is the white paper, the information about the board of directors or all other important details? More reliable cryptocurrencies like Ripple, Ethereum and Dash show clearly teams on their websites. They show who is behind the team and developing the currency.

However, when it comes to BitConnect, things are completely different. They are hiding information from you and me.

bitconnect scam is hiding information

BitConnect is obviously hiding some information.

Conclusion – Is BitConnect a Scam?

Have you heard of a duck test? It helps you to define whether an animal is a duck or not. You can use it like this, “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.”

Let’s apply this duck test to BitConnect: “If it looks like a Ponzi scheme, works like a Ponzi scheme, and quacks like a Ponzi scheme, then it probably is a Ponzi scheme.”

Personally, I highly recommend staying away from this system. Even if you could make some money from (Ponzi scheme) Bitconnect, you would make something bad to your reputation as a person and to your conscience.

Clean conscience, integrity, and honesty are far more important than money. That’s why I want to underline: Stay away from BitConnect!

There are tons of honest ways to make good money online so it doesn’t make sense to waste time with systems that look like Ponzi schemes. You can take a look at my #1 recommendation for making money online.

You can also grab $10 worth of free Bitcoins here or take a look at other scam-free online jobs.


What do you think about the future of BitConnect? Is it a Ponzi scheme and when will it collapse?

Are you interested in making money online, in general?

Let’s discuss in the comments below! 🙂

BitConnect

BitConnect
0.5

Overall Ranking

0.5/10

Pros

  • Hard to Find Any

Cons

  • Tons of Red Flags
  • Reliable Entrepreneurs Say It's a Scam
  • Information Is Hidden
  • The System Is New
By | 2017-12-03T00:35:43+00:00 December 1st, 2017|Categories: Bitcoins, Scam Products|12 Comments

About the Author:

Roope is the founder and creator of YourOnlineRevenue.com. He has created this website in 2015 to help you to create a successful online business.

If you have any questions, don’t hesitate to contact us by leaving a comment below! We hope you enjoy!

12 Comments

  1. Adesuwa08 December 13, 2017 at 8:08 pm - Reply

    Bitconnect is most definitely a scam. I’ve hear about it in the past , not just heard about it but a friend of mine who got into it is now regretting every bit of it.

    It’s really heartbreaking knowing that people put in a lot of effort just to scam others. I mean, what happened to just going legal and doing things the right way?

    I haven’t tried bitconnect and I definitely won’t recommended it to someone. If you’re looking to invest in something really legal, genuine and worth the time, effort and patience, then I suggest you go with Roope’s recommendation, Wealthy Affiliate.

    • Roope Kiuttu December 14, 2017 at 12:39 pm - Reply

      Yeah, it’s sad that there are still Ponzi schemes around. Fortunately, most cryptocurrencies and make money online opportunities, in general, are legitimate. Still, there are some that are shady like BitConnect but nowadays it’s quite easy for me to spot them because I’ve researched more than 350 MMO opportunities.

      I’m glad I didn’t fall into scams but I found Wealthy Affiliate early on my online business journey.

  2. Rumu December 10, 2017 at 2:03 am - Reply

    As funny as it may sound, a friend of mine is into bitconnect and claims to making something out of it every now and then. I really dont know if it’s true or not. Or maybe his just say in it to convince me into it. Thanks to your review I now know quiet a little about it, and I don’t think I’ll be indulging my friend any time soon.

    • Roope Kiuttu December 10, 2017 at 9:57 pm - Reply

      As I said in my article, people who are involved in the Ponzi schemes do make money for a while. That makes them very appealing. So probably your friend is talking true but he is just deceived.

      I hope he gets away fast before BitConnect finally crashes.

  3. xobe December 3, 2017 at 8:18 am - Reply

    One of my friend tried to convince me regarding this Bitconnect because of its profits. He said that I just need to lend money in a form of Bitcoin and it will gain interests once it returns. Nowadays Bitcoin is trending and the value of every coin varies everyday. It gets my attention not joining that platform because one of my co-worker said that its a black market and very risky.

    • Roope Kiuttu December 4, 2017 at 12:16 am - Reply

      Great to hear that you didn’t join BitConnect. It’s true that people are momentarily making big money with BitConnect system at the moment. That’s how it goes with any Ponzi scheme. People make big money because more and more people keep on joining the program. However, eventually the system collapses and we wonder why did they join at all.

      I have invested in Bitcoin and to many other cryptocurrencies. I would like to hear what your co-worker means when he said that it’s a “black market and very risky”?

  4. Jan Zac December 1, 2017 at 11:17 pm - Reply

    Hello ,

    I saw your tweets and thought I will check your website. Have to say it looks very good!
    I’m also interested in this topic and have recently started my journey as young entrepreneur.

    I’m also looking for the ways on how to promote my website. I have tried AdSense and Facebok Ads, however it is getting very expensive. Was thinking about starting using analytics. Do you recommend it?
    Can you recommend something what works best for you?

    Would appreciate, if you can have a quick look at my website and give me an advice what I should change: http://janzac.com/

    I have subscribed to your newsletter. 🙂

    Hope to hear from you soon.

    P.S.
    Maybe I will add link to your website on my website and you will add link to my website on your website? It will improve SEO of our websites, right? What do you think?

    Regards
    Jan Zac
    http://janzac.com/

    • Roope Kiuttu December 2, 2017 at 11:47 am - Reply

      Hi Jan,

      Thanks for your message! Do you mean Google Analytics? I certainly recommend using it.

      My favorite way to drive traffic so far has been organic SEO. So, getting traffic from Google and other search engines. It takes time but once you get the ball rolling the traffic grows exponentially and it’s pretty amazing. I have learned the SEO skills on Wealthy Affiliate and I can recommend their training for you as well.

      Check out these 10 tips that I wrote about getting ranked on Google. They’ll help you for sure to drive traffic to your website if you put them into action.

      Thank you for subscribing to my newsletter.

      Well, now you got two links to your site from your comment. 😉 I haven’t concentrated on backlinks almost at all but I’m still getting great results with SEO. Yet I know they are beneficial but not the most important factor with rankings.

      All the best Jan!

      Cheers,
      Roope

  5. Catty December 1, 2017 at 11:17 pm - Reply

    Hi, great article. Could you maybe make one about Bitcoin or Ethereum? Thanks!

  6. Dictator20 December 1, 2017 at 6:24 pm - Reply

    Does bitconnect is different from bitcoin? How does the bit connect work? does it work same as the bit coin where you should reply to those forums? I am finding an extra income right now to provide my tuition fees I hope someone can help me to find a great side line. (The good paying one please) and legit at the same time. Can you please give me a proof?

    • Roope Kiuttu December 1, 2017 at 9:16 pm - Reply

      I answer your questions one by one.

      1.BitConnect is not a croptucurrency like Bitcoin or other ones.
      2.Based on my research and what people are saying it’s a platform/community that takes money from new investors and pays it to those who joined the program earlier.
      3.No, it doesn’t work that way.

      4.There are tons of ways how you can make money online. For beginners I recommend Wealthy Affiliate. You’ll find several proofs in my full Wealthy Affiliate review.

      You can also check out other online jobs here.

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