Bitconnect (abbreviated as BCC) is an open-source and peer-reviewed decentralized cryptocurrency. It is among the latest cryptocurrencies to join the fast-growing and evolving crypto world. Unlike other cryptocurrencies that were designed to address a specific flaw in the preceding digital currencies, the main objective of Bitconnect was to create a cryptocurrency fully owned by the community. Here is a comprehensive look at the cryptocurrency to establish everything you need to know about it.
When and who founded Bitconnect?
When Bitconnect was launched earlier on in 2017, the main objective was to form a cryptocurrency that the community could fully associate with. The founders wanted to form a cryptocurrency that would also serve as a wallet for storing and investing their cryptos.
One unique thing about Bitconnect is that you can earn some interest for the coins stored in its wallet. This makes it pretty like a bank. While this model appears appealing, effort to dig about the founders casts some doubts about the entire project.
There is very little info about Bitconnect founders or the associated company. The company does not provide its address or direct contact. The only contact that users or interested parties can use is a support thread, email@example.com. This is a departure from other cryptocurrencies trends such as Zcash and Ethereum that were preceded by comprehensive white papers and their operational teams ready to even hold media interviews.
The cryptocurrency is particularly popular in the Far East especially India, Japan, Philippines, South Korea, Vietnam, Cambodia, Indonesia, and Thailand.
How Bitconnect operates
To get started on Bitconnect, you are required to download the Bitconnect client which also serves as the main wallet. Your computer will serve as a nude to help secure the network through “POW/POS” (proof of work/proof of stake) algorithm. You will also need to make some investment (between $100 and $100,000) in the network to start using Bitconnect.
The cryptocurrency uses a decentralized blockchain technology that allows users to send and receive cash directly anywhere in the world on a peer2peer basis. This means that only the sender and receiver are aware of the payment. The other nodes (users/miners) in the Bitconnect network only confirm transactions that are highly encrypted.
The design of Bitconnect is to ultimately have a total of 28 million coins released into the network. These are released through mining by people who support the network as a reward for confirming transactions. At the moment, only five million Bitconnect Coins have been released.
Key features of Bitconnect
This is a unique feature that allows users in the network to lend money to the network and get returns. After joining the network, you can opt to lend funds to the network directly from the dashboard. The money is used to acquire and run the mining hardware.
The Bitconnect affiliate program
This is a motivational program in the network that targets growing the network through referrals. Users in the network are encouraged to use their networks such as blogs, companies, and even social media to encourage other people to join the network.
This is the reward that Bitconnect miners are given for being part of the network and working hard to advance it. Just like other cryptocurrencies, the miners do the heavy lifting of securing and confirming transactions. They also store the blocks generated in the network.
This is the native asset in the Bitconnect network. You can either get the asset through direct mining, buying from the recommended exchange, or getting paid by a person who already have them. Note that whether you are buying, selling, trading, or mining, a cryptocurrency wallet will be required to hold the coins.
Pros of Bitconnect
- It provides investors with a great opportunity to invest and reap handsomely. You can lend the company cash to buy mining equipment and get your investment plus some benefit accrued in selling mining equipment.
- They have very low minimum withdrawals limits. People on the Bitconnect network can make withdrawals even if they only have 0.005 BTC.
- As a new cryptocurrency whose crypto assets are rapidly growing, Bitconnect presents users with a great opportunity for investment. For example, the value of the coin appreciated rapidly from $1.7 to $69 in only two months. Well, if you place your cash on the crypto, the chances of reaping good returns are very high.
- They have a very robust affiliate program. When you refer new users to the network, part of the profits that they make will be credited to your cryptocurrency wallet.
- Unlike Bitcoin that requires users to have the very expensive equipment to mine BTC, Bitconnect is different. This means that you can use the standard home computer to mine Bitconnect Coins and enjoy seeing the investment grow.
- Bitconnect has an app for both android and iOS devices. This allows users to remain in touch with the network and take advantage of any price changes in the exchanges to make great returns.
Cons of using Bitconnect
- There is very little information about the company or its founders. This makes it look like a Ponzi scheme. Many people might hold back their decisions to join the crypto or opt for alternatives that are more open.
- Joining the cryptocurrency network is very expensive. Unlike other cryptocurrencies that allow users to mine and build their portfolios, Bitconnect insists that interested people must make some investments of between $100 and $100,000.
- The cryptocurrency is still very young. Even if one might opt to go Bitconnect way, the fact that the cryptocurrency is very young means that most of its features are still in their early stages. It will take time to confirm their effectiveness, ability to resist threats and stability in the crypto exchanges.
The final take
As more cryptocurrencies join the bandwagon, investors are quick to spot opportunities and pick them. One of these opportunities is Bitconnect. As a fully community-owned cryptocurrency undergoing rapid appreciation, it has a great appeal. However, the fact that most of its details remain scanty has been interpreted to mean the entire project could be another type of ponzi scheme. Therefore, consider only placing some limited investment in the network or shift to a more open cryptocurrency.