BitConnect aimed to be an open-source online community that would deal in bitcoin and other cryptocurrencies. It also offered the prospect of multiple investment opportunities for people along with literacy regarding cryptocurrencies. It was declared unlawful and the assets of this company were frozen by U.S. courts.
What is BitConnect?
BitConnect is basically a platform that allows bitcoin lending. It had a faster transaction rate compared to the bitcoin platform. This was because of the encryption used, Scrypt, that was faster than what bitcoin employed. People invested in BitConnect believing it to be a good investment opportunity. For instance, the cryptocurrency of the BitConnect platform could be bought and sold like other cryptocurrencies. As with all cryptocurrencies, depending on prices it was bought and sold for, the user could turn a profit. But this is where it becomes a bit unclear. BitConnect offered a share of the profits the currency made and this share of the profits would accrue for anyone holding over $100 worth of BitConnect’s currency.
BitConnect was established through a company called BitConnect Limited. This company was registered in 2016 in Great Britain. They projected themselves as a community whose aim was to popularise the adoption of bitcoins. This aim was changed later with the creation and announcement of their own currency the BitConnect Coin. The initial coin offering (ICO) was in 2016, between the months of November and December.
BitConnect Coin (BCC) is the cryptocurrency associated with the BitConnect platform. It is open source. It is a peer-to-peer community driven currency. As with all cryptocurrencies, this too is decentralized. This coin was promoted as an investment that was not controlled by any government and the most attractive feature was that this investment would accrue an interest. This was novel because most cryptocurrencies do not offer an interest payment on investment. Users instead rely on day-to-day trading prices in order to make a profit or return on investment. The maximum number of BitConnect Coins that will be made available will be 28 million.
Where to buy BitConnect?
BitConnect Coin can be bought and sold either online or offline, depending on the user’s preference. The most popular method is to make use of an online cryptocurrency exchange platform which will either exchange the coin for other digital currency or fiat money.
BitConnect Coin has its own wallet known as BitConnect Coin Wallet. This wallet has to be downloaded onto the user’s system. After the wallet has been set up, it can be used to store the coins. One thing to note is that the user will have to wait for a while so that the blockchain can be downloaded before being able to use the wallet. The wallet is available for the Windows Operating System and for the MAC OS X Operating System.
Before mining the BitConnect Coin, the user needs to install the BitConnect Coin Wallet on their system. Then, using either a CPU or a GPU, people can mine the coin. There is no requirement for a special mining tool for this coin. The mining process is more energy efficient compared to mining for Bitcoin. There are two main concepts involved in the mining process—proof of work and proof of stake. The proof of stake process is what makes the mining of BitConnect Coin more energy efficient. After setting up the wallet, the user has to configure their mining software such that it points to the wallet. Whenever an entire block is mined, all the coins that are generated in the process belong to the miner. This acts as a type of reward system. But this happens only if the miner is working solo. Also, it is extremely difficult to mine as a single person. It is more advisable to mine as part of a group of people. Such a group will be known as a mining pool. A user wishing to mine as a group will first have to join a mining pool. The reward coins will be shared among the mining pool for each block that is mined.
BitConnect Coin price trends
The price trends for the BitConnect Coin are not very clear. According to the official website, the price of a BitConnect Coin as of the third week of April 2018, is $1.593. In addition to this, for the same time period, the company has mentioned that the total market cap is not applicable as is the total available supply of the coin. Reasons have not been provided. From the price trends, it is clear that there have been several fluctuations in price and trading volume. It is also clear that the volume of coins traded per day has dropped from being in the millions to the thousands within the period of a single financial year.
The historical price trends are presented here.
|Aug 27, 2018||6,710.80||6,884.64||6,689.71||6,884.64||4,019,000,000||115,646,248,487|
|Aug 26, 2018||6,754.64||6,774.75||6,620.75||6,707.26||3,295,500,000||116,387,236,698|
|Aug 25, 2018||6,719.95||6,789.63||6,700.96||6,763.19||3,312,600,000||115,778,181,501|
|Aug 24, 2018||6,551.52||6,719.96||6,498.64||6,719.96||4,097,820,000||112,864,138,781|
|Aug 23, 2018||6,371.34||6,546.54||6,371.34||6,534.88||3,426,180,000||109,748,424,726|
|Aug 22, 2018||6,486.25||6,816.79||6,310.11||6,376.71||4,668,110,000||111,714,827,567|
|Aug 21, 2018||6,301.07||6,500.87||6,298.24||6,488.76||3,377,180,000||108,513,649,180|
|Aug 20, 2018||6,500.51||6,536.92||6,297.93||6,308.53||3,665,100,000||111,936,076,638|
|Aug 19, 2018||6,422.57||6,537.98||6,361.55||6,506.07||3,311,170,000||110,582,598,384|
|Aug 18, 2018||6,583.43||6,617.35||6,353.73||6,423.76||3,984,520,000||113,338,906,417|
|Aug 17, 2018||6,340.91||6,582.50||6,324.97||6,580.63||4,992,990,000||109,151,601,195|
|Aug 16, 2018||6,294.23||6,473.50||6,276.41||6,334.73||4,328,420,000||108,335,763,931|
|Aug 15, 2018||6,221.42||6,588.49||6,221.42||6,308.52||4,895,450,000||107,070,056,730|
|Aug 14, 2018||6,287.66||6,287.94||5,971.05||6,199.71||5,301,700,000||108,199,097,492|
|Aug 13, 2018||6,341.36||6,537.05||6,225.72||6,297.57||4,083,980,000||109,111,523,954|
|Aug 12, 2018||6,283.65||6,409.85||6,237.50||6,322.69||5,665,250,000||108,106,451,582|
|Aug 11, 2018||0.643488||0.681527||0.632094||0.679475||0||6,316,021|
|Aug 10, 2018||0.643531||0.778172||0.622547||0.644282||8,339||6,314,887|
|Aug 09, 2018||0.626457||0.678295||0.571912||0.627262||5,550||6,144,821|
|Aug 08, 2018||0.505132||0.665038||0.503624||0.625008||6,417||4,953,414|
|Aug 07, 2018||0.582968||0.746093||0.504597||0.504597||8,271||5,714,513|
|Aug 06, 2018||0.355259||0.866439||0.355259||0.657239||9,710||3,478,731|
|Aug 05, 2018||0.297529||0.424630||0.263767||0.349832||2,434||2,912,562|
|Aug 04, 2018||0.308087||0.312529||0.289360||0.297396||1,180||3,014,573|
|Aug 03, 2018||0.344262||0.351738||0.304395||0.307761||163||3,367,608|
|Aug 02, 2018||0.339106||0.376702||0.302840||0.344187||29||3,316,350|
|Aug 01, 2018||0.360630||0.368276||0.309066||0.313370||748||3,524,676|
|Jul 31, 2018||0.382648||0.382648||0.354431||0.360552||796||3,739,132|
|Jul 30, 2018||0.408938||0.410817||0.369117||0.383350||420||3,995,089|
|Jul 29, 2018||0.382418||0.413374||0.382418||0.408657||343||3,735,194|
|Jul 28, 2018||0.365074||0.441381||0.335871||0.380963||1,213||3,565,114|
|Jul 27, 2018||0.316896||0.424017||0.315371||0.364318||104||3,094,063|
|Jul 26, 2018||0.354914||0.437006||0.314397||0.317297||627||3,464,558|
|Jul 25, 2018||0.412702||0.421651||0.314359||0.355234||340||4,027,399|
|Jul 24, 2018||0.430211||0.477360||0.285737||0.420370||1,961||4,197,236|
|Jul 23, 2018||0.483559||0.485474||0.398446||0.429574||631||4,716,459|
|Jul 22, 2018||0.492547||0.493360||0.483038||0.483658||11||4,804,009|
|Jul 18, 2018||0.555848||0.573081||0.555848||0.565686||689||5,412,960|
|Jul 17, 2018||0.485318||0.560388||0.465899||0.556288||678||4,724,319|
|Jul 16, 2018||0.411804||0.491793||0.410777||0.483885||346||4,001,992|
|Jul 15, 2018||0.410715||0.428691||0.392401||0.411323||567||3,990,146|
|Jul 14, 2018||0.343941||0.410930||0.343941||0.410805||430||3,340,793|
|Jul 13, 2018||0.399301||0.420328||0.342284||0.344940||699||3,877,819|
|Jul 12, 2018||0.449459||0.449459||0.328844||0.398936||500||4,363,532|
|Jul 11, 2018||0.439175||0.449495||0.403457||0.449495||706||4,262,716|
|Jul 10, 2018||0.461729||0.462627||0.409216||0.439158||148||4,478,846|
|Jul 09, 2018||0.476696||0.478957||0.435461||0.462056||341||4,622,970|
|Jul 08, 2018||0.481414||0.482035||0.475973||0.476801||280||4,667,683|
|Jul 07, 2018||0.452120||0.483570||0.422233||0.481957||335||4,382,359|
|Jul 06, 2018||0.474595||0.474595||0.410180||0.452887||199||4,598,652|
|Jul 05, 2018||0.453592||0.527194||0.435059||0.474661||5,685||4,393,675|
|Jul 04, 2018||0.552488||0.553365||0.405840||0.452629||1,210||5,349,718|
|Jul 03, 2018||0.455228||0.560415||0.403774||0.552699||1,793||4,406,486|
|Jul 02, 2018||0.450717||0.472257||0.425673||0.457143||1,356||4,361,579|
|Jul 01, 2018||0.456801||0.459320||0.419033||0.450693||671||4,419,245|
|Jun 30, 2018||0.441708||0.460374||0.417363||0.456750||599||4,272,082|
|Jun 29, 2018||0.421328||0.448665||0.381799||0.441104||1,431||4,074,105|
|Jun 28, 2018||0.445356||0.446683||0.396658||0.421085||1,288||4,305,502|
|Jun 27, 2018||0.409655||0.445826||0.393404||0.445200||772||3,959,376|
|Jun 26, 2018||0.419585||0.457876||0.409452||0.409819||764||4,054,524|
|Jun 25, 2018||0.410011||0.427582||0.407209||0.419585||339||3,961,029|
|Jun 24, 2018||0.430453||0.436840||0.381852||0.410761||310||4,157,333|
|Jun 23, 2018||0.423424||0.483507||0.392754||0.474093||1,561||4,088,254|
|Jun 22, 2018||0.535611||0.536520||0.395117||0.422998||437||5,169,272|
|Jun 21, 2018||0.519201||0.550394||0.460556||0.536118||1,493||5,008,731|
|Jun 20, 2018||0.474341||0.552665||0.423177||0.519080||1,480||4,574,902|
|Jun 19, 2018||0.511845||0.513180||0.419176||0.474045||237||4,935,709|
|Jun 18, 2018||0.491618||0.516980||0.401183||0.512098||1,709||4,739,694|
|Jun 17, 2018||0.502879||0.511840||0.459362||0.493551||498||4,847,011|
|Jun 16, 2018||0.506729||0.512382||0.455112||0.501637||412||4,883,009|
|Jun 15, 2018||0.529144||0.529773||0.397412||0.508566||2,073||5,097,884|
|Jun 14, 2018||0.500364||0.534526||0.469558||0.529983||867||4,819,391|
|Jun 13, 2018||0.499108||0.525366||0.475584||0.500590||824||4,805,592|
|Jun 12, 2018||0.520915||0.586737||0.468832||0.497802||518||5,013,374|
|Jun 11, 2018||0.589455||0.597377||0.450005||0.521193||650||5,671,873|
|Jun 10, 2018||0.591233||0.615757||0.546809||0.588614||407||5,688,354|
|Jun 09, 2018||0.570903||0.624063||0.354609||0.590502||2,178||5,491,892|
|Jun 08, 2018||0.679129||0.680585||0.571280||0.571280||1,225||6,531,934|
|Jun 07, 2018||0.830835||0.840747||0.616191||0.678702||3,974||7,989,765|
|Jun 06, 2018||0.762750||0.835753||0.696506||0.830071||870||7,333,852|
|Jun 05, 2018||0.731079||0.804899||0.677321||0.762935||2,036||7,027,459|
|Jun 04, 2018||0.793459||0.939977||0.694818||0.730730||2,389||7,624,986|
|Jun 03, 2018||0.747375||0.794714||0.685911||0.791445||1,143||7,179,913|
|Jun 02, 2018||0.612431||0.749761||0.609002||0.747173||1,557||5,878,902|
|Jun 01, 2018||0.695214||0.698047||0.603599||0.612693||1,017||6,671,447|
|May 31, 2018||0.600181||0.705017||0.597376||0.694703||493||5,757,599|
|May 30, 2018||0.689493||0.720064||0.588264||0.600335||570||6,612,610|
|May 29, 2018||0.620972||0.690753||0.549301||0.689051||4,093||5,953,776|
|May 28, 2018||0.720338||0.752333||0.609616||0.621146||208||6,904,234|
|May 27, 2018||0.735011||0.735011||0.626289||0.720167||1,238||7,042,384|
|May 26, 2018||0.705844||0.820007||0.695970||0.734757||1,433||6,760,211|
|May 25, 2018||0.627561||0.706726||0.616894||0.706726||283||6,009,738|
|May 24, 2018||0.606562||0.658811||0.587580||0.626626||263||5,807,826|
Risks associated with BitConnect Coins
With regard to BitConnect Coins, the company promised a monthly reward for every user. This reward was to be a percentage of the funds that were available in the user’s wallet. The plan was to reward the user with 10% for the first six months and then reduce the rewards for every six months thereafter. The people who run the BitConnect website mentioned an annual return on investment that could be as much as 120%. This is a risky proposition and every person who tries to acquire BitConnect Coins should be aware of the risks. Investments that have an extremely high rate of return can be classified as risky. In addition to this, there is no whitepaper regarding the currency or the platform. This is one of the signs that neither was developed in an orderly fashion. This are signs that there could be some element of fraud or risk involved. From the historical price trends, it can be gleaned that the trading volume for every 24 hours that the currency was on the market fluctuated wildly. Also, there was a huge drop in the volume in 2018. The creators of the coin are not known. This is another factor that investors should take into account before investing in this coin.
In addition to the points mentioned before, there has been widespread suspicion that this cryptocurrency is just an elaborate Ponzi Scheme, meaning investors are at risk of losing their money. The currency also employs a multi-level marketing structure which is also cause for concern. Courts have also issued orders against this currency, including one that was a cease and desist order. The company responded by mentioning that they would shut down their operations. There was also at least one instance during which the assets of the company were frozen by order of a Court.
Thus, it can be seen that investing in BitConnect can be an extremely risky business. In addition to governments cracking down on cryptocurrencies, the company itself has not always inspired confidence. This goes on to show that an investor would be better served making use of traditional investment platforms that are well known. It is suggested that potential investors try to invest in mutual funds instead of cryptocurrency for better returns. It is also to be noted that any kind of investment is to be made after extensive research.
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