BitConnect is the $900,000,000 Crypto Ponzi Scheme

What's up you guys? It's Graham here. So, as you can see in the background, I just started furnishing the duplex and it's looking pretty dope right now. I promised you guys another update video in the next like week or so as I get a little bit more work done, because I've done a lot to this place since the last update video a few weeks ago.

But today I want to talk about Bitconnect, and I literally just started seeing ads on my videos now promoting Bitconnect. I'm also seeing a ton of people promoting this right now on social media, with how much money they're making every single day and how you're missing out if you're not making the money every single day. This just seems absurd to me, and I hate to see people fall victim to this crap because it screams pyramid scheme. It blows my mind to see this is the 13th biggest cryptocurrency right now, with a market cap of almost 900 million dollars. When Bitconnect busts, it's gonna be a huge detriment to all the legitimate cryptocurrencies that were gaining a lot of credibility over the last few years.

So, let's start here. If you're not already aware, Bitconnect is a cryptocurrency known as BCC, and they promise some pretty incredible risk-free guaranteed returns that are pretty substantial. The way this allegedly works is that they have this trading software algorithm that trades the swings of Bitcoin and makes little profits throughout the day. Because these profits are so big, what they want you to do is invest in them. So basically, when you go and lend them the money, they use this to invest with their secret algorithm bot that goes and makes them money. But in return for you lending them money, they're gonna give you back some of their profits. Just like any good pyramid scheme, the more you invest, the more money you make.

All their website says is that if you want a stake return, they guarantee that you're gonna be making 10% per month for the first six months, guaranteed. Then, if you invest in Bitcoin lending, if you invest under $1,000, you can make up to 40% per month. Oh, but you also have to agree to lock up your investment for 299 days. That sounds just a little sketchy to me. But it gets better. If you invest over $10,000, you'll receive 0.25% daily interest plus up to 40% per month from their trading bot, and you'll get your money back in 120 days. So already, this is sounding really crazy, but let's keep going.

But the real magic here is actually through the referral system. You have your own special referral link, and if someone else signs up using your link, you get 7% of whatever money they invest. Then if that person refers someone, you get 3% of that person's investment. And then if that person refers someone, you get 1% of that person's investment, and you just keep going. Guys, like this is literally the definition of what a pyramid scheme does. This is like multi-level marketing on steroids right now!

So basically, you're going and getting one person to fund someone else's return, and then that person's gonna fund someone else's return, and then that person is gonna refer it out to fund someone else's return. It's just gonna keep going. You basically just have to continue to funnel people back into Bitconnect to pay off more returns. This type of growth is absolutely unsustainable when you can't get any more people to buy into it to pay out these crazy returns, or when people all want to cash out around the same time, or if Bitcoin drops in price, or if the owners just decide one day that they've made enough profit, they want to cash out and leave. When that happens, all the money you worked so hard for is just gonna be gone.

So if that isn't enough, let's talk about more of the red flags I see here. The first one is that they want you to buy Bitcoin to then buy BCC. You can't just buy BCC directly; you have to do it with Bitcoin. But okay, let's give them that one. Let's give them the benefit of the doubt on that. Fine. The next one is you also buy it directly from the developer. But okay, let's give them that one too. So you have to buy Bitcoin with it, and you have to buy it directly from them.

Okay, so let's let both of those slide. Their referral system is also extremely sketchy with their payout system, and the fact that it's literally a pyramid. It's the fact that you literally have to get more people to sign up and more people to sign up and more people to sign up to pay out the people on top. The other thing that's a little bit sketchy is that I see a lot of the people that promote Bitconnect use terms like financial freedom, work from home, quit your job, travel the world.

Guys, honestly, anytime you hear someone say that or claim these things, your antenna should go up like immediately. God, honestly guys, there's nothing that's ever gonna be that easy where you just like invest in this one little thing and your life is set forever. This also doesn't take into account that BCC doesn't really do anything besides promise these crazy returns and offer you even more money for having more people referred back into the system. You also have no idea where your money goes, and you have your money locked up.

All the incentives they give you with crazy returns for referring other people back into Bitconnect, I mean, from my perspective here, it's pretty obvious it's a pyramid scheme, and it's just unsustainable. It will at some point go bust, and a lot of people are gonna lose a lot of money. So for everybody doing this, just be careful and at least understand what it is you're getting into and what risks you're taking by investing in Bitconnect. If you end up being too greedy and holding on to it a little bit too long, and whenever the cryptocurrency just can't sustain itself, you could potentially be out a lot of money.

As long as you just understand the risks, fine, I’m cool with people doing whatever they want to do, but just at least know what you’re getting into. So let's be honest here. This might really benefit the people that get in early on something like this and the people that cash out early. It's basically just a game of risk and reward. So if you see somebody promoting this, at least just understand what you're getting yourself into.

So I'm gonna end this video on this note: If something sounds too good to be true, it probably is. From my experience, usually your intuition is almost always right about these sorts of things. If something seems a little bit off or fishy, or something just doesn't totally add up, or maybe you don't completely understand what it does, usually your intuition is correct. I don't believe there's any sort of thing as a get-rich-quick scheme you can do or some guaranteed way to make money, because the truth is, anytime you make money, the more money you make, usually the more risk you take on.

It's important to understand this and go into it at least understand it completely: what you're getting yourself into and what risks are associated with that. Because I promise you, there is nothing ever a completely guaranteed risk-free with that crazy of a high return. So like I said, at least go into it knowing the risks and what's associated with that. If this video even helps one person from investing in something they didn't completely understand the risks of, then I think this video is completely worth it.

So I hope you guys enjoyed this. I hope this video helps you guys out the next time you see someone pitching Bitconnect or putting like a referral link, or telling you how much money they're making and how you're missing out. Just think of this. So, as always, you guys, thank you so much for watching. I really hope you enjoyed this. If you haven't already, make sure to click subscribe and smash that notification bell so you know when I upload videos. Also, feel free to add me on Snapchat and Instagram because I post there pretty much daily. So if you want to be a part of it there, I'll put them right here. Feel free to add me there. Thank you again for watching, and until next time.