BitConnect

Bitconnect logo

BitConnect coin (or BCC abbreviation) is a cryptocurrency, a token of the peering payment system BitConnect[1].

Contents

History

The BITCONNECT LTD Company was registered in 2016 in Great Britain[2]. The ICO was carried out from November 15th to December 31st, 2016[3]; In January 2016, the first desktop version of the wallet and the possibility to exchange BitConnect for Bitcoin appeared, and the BitConnect Android app appeared in March. It is notable that in March 2016, BitConnect held themselves as a community that aims to popularize Bitcoin[4]. However, in a few months, the information on their website was changed; BitConnect presented themselves as a company and offered their own currency.

Distribution of tokens

The number of BCC is limited to 28 million[5], as of October 15th, 2017, there were 8.2 million coins[6]. 4 million tokens were issued through the ICO. The remaining BitConnect coins are distributed via the combination of the Proof-of-Work (PoW) and Proof-of-Stake (PoS) algorithms: As soon as the number of blocks in the blockchain reaches 262 800, PoW will stop its work. On October 15th, 2017 there were 197 951 blocks. A reward of 10 BCC is given for each created block. Then the work of the blockchain will be supported by the PoS. The maximum number of coins is 20.4 million. The proof of stake has a flexible payment system: The first 6 months mean the monthly reward of 10% of the funds that are in the user’s wallet. Every 6 months thereafter, the payment will be reduced to 8%; 7%; 5%; 3% and 1.4 % correspondingly[7].

Technical characteristics

The Scrypt hashing algorithm is used. The speed of the block building makes out 2 minutes. Transactions are made between users without any middleman. Transactions are verified by the network nodes. Mining is carried out with a BitConnect wallet. The use of a video card (GPU) and a central processing unit (CPU) is possible. The protection is ensured by a hybrid algorithm consisting of a proof-of-work (PoW) and the proof-of-stake (PoS)[8]

Specifics of use

The cryptocurrency is used basically inside the community: the coins are difficult to exchange, they are accepted/supported by a relatively small number of platforms[9]. BitConnect can be used as:

  1. Long-term investment. The strategy of BCC purchasing for market speculations or investments in the coin rate growth can be met rarely.
  2. Loaning means. The design of the system creates incentives for users to keep money in electronic wallets. The creators of the currency inform the investors in their promo videos about the presence of the own trading robot of BitConnect, which trades on the inner exchange of BCC. Coins are used to let him hold tenders. It is necessary to:
  • Replenish your account with Bitcoins
  • Buy BitConnect coins, loan them to the trading robot. At that, the amount of BCC is given in US dollars.
  • The money on the account is frozen for 120-299 days
  • The interest is accrued to the amount kept in the wallet (up to 30% per month)
  • The interest can be re-invested or withdrawn [10]

Bitconnect Roadmap

Bitconnect Roadmap

BitConnect Blockchain successfully switched to PoS & Roadmap for calendar year 2018

As of Block height 262,800 on the BCC blockchain, Proof of work mining (PoW) has ended. New coin generation, as well as transaction verification on the blockchain, will be handled by Proof of Stake (PoS).

You will not be able to mine BitConnectCoin with CPU/GPU and only Stakers will be rewarded. To learn more about Staking and Staking rewards.

The 2018 Roadmap

Bitconnect’s upcoming projects Continue on the journey. One might wonder what BitConnect is planning next, and how the value of the coin will evolve over time. Some of the prominent developments completed and some waited in the Bitconnect ecosystem.

This roadmap is the highlight of BitConnect Team’s vision and development priorities. This roadmap is intended to provide an idea of when certain features are likely to become available.[11]

Perspectives

The Roadmap on the project’s website ends with November 2017[12], which is why the further plans of the developers are unknown.

The share of BCC in the volume of general trades on the cryptocurrency market makes out about 0.1%; however, the quick growth of the BitConnect popularity can be noticed:

  1. During a year of the platform’s work, it was managed to attract 50,000 users[13]
  2. In the rating of cryptocurrencies, BCC is on the 11th place[14], although it was launched less than a year ago
  3. The general capitalization of BCC makes out over 1.2 billion[15].

Fraud cases

Formally, there were no fraud cases with BitConnect detected as of January 2018. However, for a number of reasons it can be assumed that this cryptocurrency might be a financial pyramid scheme:

1. The owners of the BitConnect website promise a yearly income of 120% [16].

  • The income stability is hardly probable: the market fluctuations are difficult to predict[17], as the cryptocurrency has a great volatility[18].
  • An income of 120% is an exceptionally high rate for an investment[19].

2. The website of the BitConnect Company doesn’t provide the cryptocurrency buyers with the necessary technical information:

  • No information about the cryptocurrency creators.
  • No whitepaper.

3. Low liquidity of BitСonnect: more than half of the market of this cryptocurrency is exchanged for Okcoin[20].

Legal issue

In January 2018, BitConnect announced that it’s going to shut down its exchange and lending operation after cases against it. On January 31, 2018, the U.S. District Court, Western District of Kentucky, granted a temporary restraining order freezing Bitconnect’s assets and “to disclose cryptocurrency wallet and trading account addresses, as well as the identities of anyone to whom Bitconnect has sent digital currencies within the last 90 days.”

A former investor and promoter of the BitConnect cryptocurrency project, Trevon James, said that agents of the US Federal Bureau of Investigation questioned him in connection with his involvement in the company’s activities.

The largest YouTube video portal was included in the list of defendants in the class action against the cryptocurrency pyramid BitConnect.

In August 2018, at the airport in Delhi, the police arrested a suspect in the cryptocurrency pyramid Bitconnect Diyasha Darji. He was the head of the Indian division of the acclaimed scam project. According to law enforcement, employees of the office of Bitconnect in the city of Surat confirmed that the organizers of the Ponzi scheme appropriated tens of millions of Indian rupees of investors.

See Also on BitcoinWiki

Reference

  1. ↑ https://bitconnectcoin.co/what-is-bitconnect-coin#Features
  2. ↑ https://www.dropbox.com/s/yqyuiihkg2uko9k/BitConnect%20LTD%20Incorporation.pdf?dl=0
  3. ↑ https://en.wikipedia.org/wiki/Bitconnect_coin
  4. ↑ http://ethanvanderbuilt.com/2017/09/05/bitconnect-scam-yes-it-is-in-my-opinion/
  5. ↑ https://bitconnectcoin.co/what-is-bitconnect-coin#Features
  6. ↑ https://www.cryptocompare.com/coins/bccoin/overview/BTC
  7. ↑ https://github.com/bitconnectcoin/bitconnectcoin/blob/master/README.md
  8. ↑ https://www.cryptodetails.com/bitconnect.php
  9. ↑ https://www.finder.com/bitconnect
  10. ↑ https://steemit.com/bitconnect/@bola/bitconnect-s-not-to-good-lending-platform
  11. ↑ Bitconnect Roadmap
  12. ↑ https://bitconnectcoin.co/roadmap
  13. ↑ https://www.prnewswire.com/news-releases/cryptocurrency-bitconnect-breaks-records-in-value-and-market-cap-300429781.html
  14. ↑ https://coinmarketcap.com/currencies/bitconnect/
  15. ↑ http://fx-wiki.ru/wiki/BitConnect
  16. ↑ https://bitconnectcoin.co/what-is-bitconnect-coin#Features
  17. ↑ Whitty M. T. There’s a scam out there for everyone: an examination of the scammers’ tricks employed in two types of mass-marketing frauds-work at home and romance scams. 2016
  18. ↑ https://www.forbes.com/sites/johnwasik/2017/04/26/how-to-spot-a-bitcoin-scam/#66152fed5897
  19. ↑ Kelleher J. C., MacCormack J. J. Internal rate of return: A cautionary tale //The McKinsey Quarterly. – 2004. – Т. 20. – С. 2004.
  20. ↑ https://www.coingecko.com/en/coins/bitconnect/trading_exchanges

External links