Bitconnect Price Prediction December 27th
Bitconnect Price Prediction December 27th! Above is the 4 hour chart for Bitconnect showing a 4 hour spike getting major resistance at $440. On a time scale Bitcoin is on an 7 for the 4 hour. Parabolic Sar is in a uptrend look for this to be broken before any major downswing occurs. Stochastic RSI is peaking indicating strong buying. CME futures are back this might be the biggest problem for the Bitcoin price and Bitconnect. Bitconnect went up in anticipation of another bull run in Bitcoin Since they started Bitcoin hasn’t seen a green day. If the 4 hour goes red expect more selling.
There is a lot of talk on the internet about Bitconnect these days. A company offering returns averaging 1% a day?!? Add in the 3 tier referral commissions and it has to be a scam, right? A MLM Ponzi, the likes of Control Finance and Bitpetite? Well…maybe not. In this guide, I am going to document my experience and results with Bitconnect lending, provide information on why I believe their business model is sustainable and a legitimate investment, as well as provide a comprehensive, step by step guide to lending on Bitconect.
Let’s start with a basic rundown of the lending platform. Bitconnect has a trading bot, referred to as the ‘Volitility Software.’ The trading bot trades BTC against USD, as well as other major world currencies. The more volatility in the value of BTC (in any direction), the better. It’s a basic ‘buy low, sell high’ model. The beauty of having a bot doing the trading is that it takes human emotion out of the equation. There are no ‘what if’s,’ or second guesses. Data is calculated with an algorithm that dictates buy and sell positions based on market volume, current buy/sell orders and price. Interest is paid daily, and investors are able to immediately transfer profits back to Coinbase or another BTC wallet. In addition to the Volatility Software rate, there is also a guaranteed daily rate for lending tiers above $1,000. The amount of the loan also determines the term length. A loan of loan of $1010+ received a .10% guaranteed rate, and the term is 239 days. A loan of $5,010+ has a guaranteed rate of .20% per day and capital is released after 179 days. A loan of $10,010+ has a guaranteed daily rate of .25% and capital is returned after 120 days. For example, if the daily rate is 1%, the daily payout on a $5,010 loan would be 1.20%.
The main criticism that I hear about the Bitconnect lending platform is that the returns are ‘too good to be true’ and therefore this must be a scam. I submit that this is not the case. Bitconnect lending pays based on BTC performance. Over the last 12 months, BTC has increased over 900%. Is it unreasonable to receive an average of 1% a day return in that climate? I think not. The benefit to the Bitconnect platform is that it minimizes risk as opposed to standard cryptocurrency investing. Worst case scenario, you receive your daily guaranteed rate (based on deposit amount), and at the end of your term, you get your principal back.
The Business Model
In my opinion, Bitconnect lending is a fantastic and simplified way to get into cryptocurrency investing….and make money! There are multiple ways to make money on cryptocurrency. Buying and holding mid to long term, Mining PoW (Proof of Work) coins, Staking PoS (Proof of Stake) coins, trading BTC against Alt coins, or BTC against world currencies on exchanges, lending on exchanges to margin traders, or doing margin trading are all potential ways to make money in the world of cryptocurrency. The barrier to entry is simply knowledge and understanding. Investing in cryptocurrency can be confusing. In the crypto world, the price of BTC is ever changing, relative to the USD and all other world currencies. The price of BTC can be up in USD, and down in EUR, or vice versa. In addition to this, the price of BTC changes, relative to the value of Alt coins. If you are trading alt coins, you are essentially shooting at multiple moving targets….from a moving platform. Once you develop an understanding of how the markets work, the basic concept behind blockchain technology and how to track news and information that will affect cryptocurrency prices, this becomes easier. And believe me, it happens faster than you think. But in the meantime, the thought of getting in to cryptocurrency can seem daunting.
Bitconnect simplifies the process. When you invest in Bitconnect, your investment is translated to a USD value at the time you issue your loan. If the value of your investment is $15,000 when you issue the loan, regardless of the increases or decreases that BTC or BCC experiences, your investment amount stays the same. The daily payout is calculated based on this figure. And you are paid in USD. No need to track prices of BTC or other cryptocurrencies. Your mind can operate in dollars, while your investment experiences the benefits of the volatility of the cryptocurrency markets.
The reason the Bitconnect business model is so successful is largely due to the fact that they have their own, unique coin; Bitonnect Coin, or BCC. BCC has a maximum supply of 28 million coins. Bitconnect initiated their initial coin offering (ICO) in November of 2016. BCC sold for between 1000 and 1400 per BTC. The value of 1 BTC in November 2016 was about $800. This means that 1 BCC was valued between 57 and 80 cents.
The battle most altcoins experience after their ICO, is getting people to see enough value (or speculative value) in their coin to buy it and either hold or use/trade it. By developing a trading bot and an exchange, Bitconnect created a demand for their coin. In order to participate in the lending platform, one must purchase BCC to make their initital investment. In order to transfer out the earnings from a loan, one must move the USD value of the earnings to BCC, and then to BTC. This has created a demand for the coin. Since the maximum supply of coins in circulation will never increase beyond 28 million, the value of the coin increases with an increased demand. As more people use the lending platform, the demand for BCC will further increase. The current value of BCC is $271. That is a 47,000% increase in one year. Yeah, you read that right. But why does this matter to Bitconnect? They hold approximately 1.7 million BCC. This translates to $460 million, based on current exchange rates. The reason they hold these coins is because the ICO offered 6 million BCC. The terms outlined in the roadmap stated that the remaining coins not sold in the ICO would be held by BCC and used for company operations, development, etc. They have grown their company’s capital holdings to nearly half billion dollars in 12 months.
Regardless of the amount of money in the bank account of a business, they must continue to make money. This comes by way of the BCC exchange. Each transaction has a fee. The minimum fee is about 10 cents, and is relative to the size of the transaction. When lenders move their investments into the platform, they must transfer between BTC and BCC. When lenders move their profits, and returned capital out of the platform, they must transfer between BTC and BCC. This is how Bitconnect generates income. In addition to this, although it is not clearly outlined in the information regarding the trading bot, I am certain that the company is also making profits from the volatility software. I just can’t say for certain how much.
The other aspect of this platform that comes under scrutiny is the multi-tier referral program. For each direct referral, 5% is paid to the sponsor. The 2nd level referrals generate 3% and 3rd level generates 2%. I see this as a two-fold benefit for the company. First, the company is generating customers without having to advertise. The members do the advertising. Second, this alleviates the need for a large support staff. I speak from experience when I say that I spend a lot of time with the people that have signed up under me. I have helped members set up Coinbase accounts, learn the basics of transferring BTC and exchanging BCC, initiate loans, transfer profits, etc. It creates a personal connection and comradery among teams, as well as helps to increase loyalty to the Bitconnect platform.
I am very pleased with the results I have experienced with my own Bitconnect lending account. I issued my first loan in July 2017 an the amount of $14,000. After 2 weeks of witnessing amazing returns, I invested another $12,000, for a total of $26,000. As of 11/6/2017, I have earned nearly $29,898 on my investment. On November 19th, my principal on my first loan will be returned, which I plan to reinvest. The average daily interest rate has been just over 1%. Since my loans are both over $10,000, I receive an additional .25%. Total average daily payouts have equated to about 1.25%. Throughout my term, I transferred my interest out of the Bitconnect system and back to my Coinbase wallet on a daily basis on most occasions.
How to Lend with Bitconnect
First, set up an account on Bitconnect. Message me and I will send you a link.
Now you must transfer it to your Bitconnect BTC wallet. Simply log in to your Bitconnect account and retrieve your BTC deposit address (make sure you are getting your BTC (Bitcoin) deposit address, NOT your BCC (Bitconnect Coin) deposit address). To do this, from your Bitconnect dashboard, scroll down to ‘Bitcoin Wallet.’ Click ‘Deposit’ and copy your BTC deposit address from the pop up window. Now log in to your Coinbase account and click on the ‘Accounts’ tab. Under your BTC wallet, click send. Enter the amount you wish to transfer and paste your Bitconnect BTC deposit address. Your BTC is now on its way. It may take up to an hour for your transaction to be fully processed and confirmed. Once your BTC has successfully transferred to your BTC wallet on the Bitconnect site, you will need to exchange for Bitconnect Coin (BCC) in order to issue a loan. From the dashboard, click the ‘Exchange’ tab. Scroll to ‘Buy BCC,’ and enter the amount you wish to purchase. This will create a purchase order that will be submitted to the peer-to-peer exchange. It may take a few minutes for your order to be fulfilled, as there are hundreds of orders being created every minute. You can track your order in the queue in the ‘Live Orders’ section of the exchange page.
You are now lending on Bitconnect! Your daily payments will begin exactly 24 hours from the time your loan is issued.
Message me or leave a comment if you have any questions or need any help. If you are interested in joining Bitconnect, message me and I will send you a link.