Bitconnect, Important points
There are many arguments for and against Bitconnect, for instance some attribute the Recent downfall of the Bitconnect Cryptocurrency has further indicators that the firm was what is known as a Ponzi scheme, a position taken in which the firm in question takes money from investors, then pays it back with money from further investors and does this by enticing prospective entrepreneurs via "too good to be true" promises.
For instance the first argument that had investors concerned about the legitimacy of Bitconnect was its questionable promised ROI. Standing at an average of 1% per day it was expected to far outperform the likes of the S&P 500 and the Dow Jones, and while Bitcoin has of course beaten this average, the kicker is it was meant to be "Risk-Free", a statement that ultimately bolted the nail in the coffin as to offer risk-free returns is in itself a deception, for the fact that the returns only average 1% and not ALWAYS 1% per day meant that already the statement was being purported.
Extended arguments included the necessity of depositing Bitcoin to invest, causing further suspicion, but in this piece I would like to have a look at the other side, what arguments have been put forward to support Bitconnect.
There is only one argument so far that brings it home.
As Carlos Martos, Chief Financial Officer at Bitconnect argues at the 2016 Bit-connect Conference:
"The world is not the way it used to be, no no no,BITCONNNNNNNNNNNNNNNEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEET."
A compelling statement by the CFO, at the end of the day I cannot speak for everyone and while the world is changing rapidly it is important to make sure that the responses to these changes are appropriate, so yes, I would question whether Bitconnect is the correct reaction to such changes. I agree with the statement that the world is not the way it used to be, but that in itself is not enough in my analysis to justify significant investment. I would recommend ensuring that further attempts at compliance to current laws is pushed, assuming of course they are legitimate as you know the answer if they are truly just a Ponzi.
When you are doing your research it is always necessary to diversify your portfolio and ensure that all perspectives are accounted for. Only then can you go about building your assets. And for further ventures similar to BC you must do the same, there is no such thing as Risk-Free in the cryptoworld
Daymond Goulder-Horobin
NB: There may be Sarcasm in this article.
References
Bitconnect guy - Why Bitconnect is the future
I doubt he is the CFO.... the real criminals kept their identity well and truly hidden. However, several “innocent” promoters who took commissions (e.g. via affiliate links) will potentially face jail for “selling” securites without a license.
That explains why so many youtubers have taken down their promotional videos.
By the time the prosecuters have sat through watching thousands of hours of watching youtube drivel, they will latch on to anything - a word, a phrase, a sentence, that could justify them making a case.
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Hes Probably not the CFO, was really just making a point that you should properly do your research before committing money to things like this, for instance the "Risk-Free" part is crucial because the fact that returns can be different from 1% in itself makes it not risk-free.
CFO was Sarcasm.
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