Is Vertcoin VTC Mining A Ponzi Scheme

Vertcoin One-Click Miner Mining and Wallet setup. Worth 0$ if there's no other people interested in VTC and buy from you. Ponzi Scheme is what it is. Vertcoin (VTC) Ripple (XRP). Is BitConnect a Scam? – Read This Before You Invest. They keep mentioning bringing family on a referral as most ponzi scheme. [VTC] Retweeted Vertcoin. @officialmcafee mining farm. I prefer #Vertcoin #DigiByte. Is a scam and a Ponzi scheme why is the Government. In under 24H the Vertcoin community has donated over 2K VTC to help Bryan Goodson! 96 22 comments 22,060 Vertans, 1,500 upvoted post, bringing the masses from r/all. In under 24H the Vertcoin community has donated over 2K VTC to help Bryan Goodson! 96 22 comments 22,060 Vertans, 1,500 upvoted post, bringing the masses from r/all.

One thing cryptocurrencies are associated with are scams and that is very unfortunate. It’s not unfortunate that people are calling it out but more so that people are actually doing it.

However, with all bad things we get good ones too. In this case, we are finding ways to combat and one of the major ways to combat scams is by China and other big countries deciding to regulate how ICO’s are done. If you are looking to do an ICO, you definitely need to follow the rules of your country. We have been approached by many of our readers about BitConnect and they are wonder if it’s too good to be true. BitConnect as a coin and service that just might end up being a scam.

BitConnect and BitConnect Coin are two different aspects but are shared on the same platform. The difference is the Bitconnect is the lending side of things and BitConnect Coin (BCC) is the value token or the coin itself. What is BitConnect According to their website, BitConnect is an open source peer to peer model cryptocurrency that is community driven crypto. Just like Bitcoin, it is a place to store and invest your wealth in non-fiat assets. However, if you’re holding (or hodling) your BCC, you are rewarded interest on the balance and this is done to help maintain the security of the coin. This is done to prevent a mass sell-off which can drive the price down. The very first block was mined on the 24 th of December in 2016 and recently hit a billion-dollar market cap.

It has a total of 28 million maximum supply and it’s mining algorithm is a scrypt. BitConnect allows you to be your own bank in a way by lending out bitcoin. You cannot trade fiat for BCC so you must purchase Bitcoin and exchange that for BitConnect. BitConnect will start giving you a specific rate of return.

BitConnect uses both Proof of Work and Proof of Stake which not many cryptos do. The Proof of Work aspect is the ability to mine to validate and earn more coins. The Proof of Stake part is that the owners of the BitConnect Coin will receive more coins as they hold onto their coins over time. How to Make Money from BitConnect? Owning BitConnect In order for you to start making money with BCC, you need to first get some coins. To do this, you need to have bitcoins in your BitConnect account.

Send your bitcoins to your bitcoin deposit address. Exchange it for BCC and that’s it. Make sure to keep it on the BitConnect Desktop Wallet.

To start staking interest your BitConnect Coin, hold it for at least 15 days. Lending BitCoin Once you have invested in buying BitConnect Coin from the BCC exchange, you can go to the dashboard on the main platform to lend or invest them. The company promises you are going to earn daily profits as their trading bot and volatility software make trades for you. In order to do this, you must lock your investment in for a specific period of time. Mining Like most cryptocoins, you can mine BCC and generate new BCC. The mining can be done with GPU and CPU. You do not need an ASIC miner.

Referral Service The referral service BitConnect has is more like an MLM referral method because of the pyramid shape it falls under. It starts with the main person up on top and as you refer more people who refer more people, you start getting a portion of their investments. It goes all the way down to 7 levels of referral bonus. Why it’s Considered a Scam? Coin Pupil is definitely not the first one to be worried about BCC, matter of fact we are probably the last but we wanted to give our guidance and opinions on what BitConnect. The following is why we think it’s all a scam.

YouTube Videos There are SO many videos on YouTube about random people who don’t seem to know much about cryptocurrency saying they are making a bunch of money off BitConnect. Many of them don’t even talk about the technical aspects of cryptocurrency. It’s almost like they magically woke up and heard about it then took a vacation that was paid by BitConnect. Most of those YouTubers don’t even talk about cryptos but rather about the lavish lifestyle they live because of their investment.

They also seem like they just got into cryptocurrency because they don’t mention bitcoin much. It’s almost unheard of to have people just jump into this space without knowing/owning about bitcoin first. Scammy Tactics In order for you to get your promised returns, you must keep your BCC locked in for 4 to 10 months. This stops you from selling your coins when the price goes down. What if the price does start going down 10-20%?

What are you going to do? Is your investment from daily returns going to make your money back in time for you to get your coins back 4 months to a year later and still make money? BitConnect claims they have trade bots that have state of the art technology to be able to trade so well that they can guarantee those returns. Trade bots are not illegal but it feels odd that they only have mentioned the bots once and haven’t really shown or gotten more in-depth into it. Improper Spelling and Grammar When you have a company that is worth hundreds of millions of dollars and you have incorrect spelling or grammar on your website, that is a pretty clear red flag. With all the team members, not one person caught the error?

This leads me to believe that this whole site was made by one person. Guaranteed Returns If anyone or anything EVER guarantees you something relating to investments or finance, run away.

Guaranteeing returns is actually illegal in the USA because you can never tell. It’s all speculation if you think you know. Minecraft BURST Mining. BitConnect claims they will give you.10% daily returns for investing $1010 to $5k and.25% daily returns if you invest over $10,010.

That comes out to be about 91.25% return per year. If thats the case, all hedge fund managers will be jobless.

MLM Style Referral Service Their referral service is an MLM type business model where you’re referring someone will bring you a certain percent of their investments and their referrals will get you smaller percentage of their investment. They even built the design based on a pyramid. The referral program guarantees you to get 7% of every investment your referrals investment. If they refer someone, that gets you 3% of that referrals and their referral gets 1%. The 5th level gets.5%, 6th level gets.3% and the 7th level which is the last one gets you.2%.

They had the pyramid go down to 10 levels but many YouTube videos came out speaking against it so they shortened it. They keep mentioning bringing family on a referral as most ponzi scheme with MLM’s do. Not many people could get past the 1st level so family is the easiest to reach. In order to participate, you must be an active lender into BitConnect to earn Bitcoins. They also reserve the right to change the commission rate to meet continued operations.

This is for best practices but still interesting to notice this. Exchanging Bitcoin for BCC There seems to be something fishy about needing to exchange the strongest cryptocurrency for your own coin. Why not be able to have it bought directly with fiat? You buy their own currency and go from decentralized to centralized to no coins after you give it away to get a return on your money when you don’t know if you will end up getting your original investment back. This feels like they don’t even believe or have faith in their own technology. Ponzi Scheme-esque A ponzi scheme is a type of fraud where the creators know that the investment won’t stick around because it relies on the first lump of investors. It usually consists of taking profits and giving them back to early investors until you have enough people giving you continuous money.

You then take the money and run off with whatever is left. In this case, the investors can’t touch their investment so they have full control of your BCC. It will not be hard for them to convert all of them that are on their exchange (centralized) to Bitcoin, sell all that into fiat and run off. ***UPDATE (11/3/17): Coin Market Cap has officially taken down BitConnect off their site where it was in the top 10 positions. This comes at a time where the community has pushed for this to happen along with Vitalik Buterin calling this a ponzi.*** Our Thoughts Our job here is not to call BitConnect a ponzi scheme but we did want to give our opinion on them. You can be using their service for 3 years without anything happening.

It may or it may not but it is always good to know what’s going on before you put money into something. To be fair, this article was about the BitConnect platform rather than the coin itself. However, if you want to be risky, you’re better off spending your money on an up and coming altcoin that you believe in. They have a better chance at skyrocketing your investments.

It has returned over 3,000% to initial investors from day 1 so the coin itself might be onto something. Posted in,, Post navigation.