There are few Altcoins which have made an impact like BitConnect has in such a short period of time. Its proponents claim it is a worthwhile form of investment that offers significant upside thanks to unique components like the ability to lend BitConnect and also earn interest on held coins. Its critics believe it is little more than a cleverly disguised Ponzi scheme. Regardless of what you may or may not know about BitConnect, it has consistently outperformed other Altcoins since it made a debut in November 2016.
The History of BitConnect
The ICO (Initial Coin Offering for BitConnect) occurred in November 2016. In that time, the coin has risen from a starting value of just $0.20 to often being valued at more than $100. There can be little doubt that the popularity of Bitcoin has been a major factor in the success of BitConnect. This UK-based cryptocurrency is inspired in many ways by the older digital coin.
Like Bitcoin, the identity of BitConnect’s developer is somewhat shrouded in secrecy. It is likely that the platform is the work of a group of developers. At its heart, BitConnect Coin (BCC on the cryptocurrency exchanges) is simply a decentralized cryptocurrency that is community driven. What makes this digital asset unique is that holders of the coin are rewarded with interest for helping to maintain the security of the network.
There is another aspect to the BitConnect Platform which has created a little bit of controversy. The developers have instituted a multi-level marketing compensation plan that is designed to deliver daily profits to those who invest in the currency. For example, an investment of $100 will get the investor a 40% monthly return for a period of 299 days. It all sounds good but some people are scared away by the idea of MLM principles being applied to cryptocurrencies. These programs just don’t work out to well for most people.
What is known for sure is that BitConnect owners are allowed to participate in a program that rewards them for signing up other to invest. Coin holders can earn as much as 7% of what someone invests through their link. That has also made some people skeptical of BitConnect as a valid investment, and it doesn’t help that most of the information available online about BitConnect at this time is provided by investors who are trying to entice more people to buy in.
This cryptocurrency is very popular in the Asian market. South Korea, Vietnam, Japan, and Thailand all have many investors in the coin. Somewhat disconcerting about the company behind BitConnect is that there is so little information to be found online. It’s one thing to take anonymity with cryptocurrencies seriously but this company seems to go out of its way to hide its location and the identity of its developers.
One area in which the developers do a better job of explaining themselves is the mining of BitConnect. There is substantial information available on the BitConnect website about mining the coin. A hallmark of BitConnect is that it can be mined with either a CPU or GPU. This makes it more feasible for the solo individual who wishes to earn a few coins.
The first step of the process is to download a BitConnect wallet and the mining software from the BitConnect website. Once the software is installed an individual can begin mining coins. The method in which BitConnect coins are mined is similar to that of Bitcoin and based on a Proof of Work (POW) system that involves solving complex mathematical problems. Miners are rewarded for solving these equations with newly “minted” BitConnect coins.
BitConnect is somewhat unique among cryptocurrencies because it also offers individuals an opportunity to participate in a mining pool. It should be noted that the current reviews on this opportunity are mixed. Some have claimed that they receive very little in the way of rewards for their efforts while others proclaim that the BitConnect mining pool is an outright scam.
What individuals might want to consider is a more reputable mining pool like the one offered by Genesis Mining. This company has mining farms in secure locations all over the world. They maintain the equipment and conduct all of the mining operations. Participants purchase hash power in the form of contracts and share the rewards of the mining operation. They can also receive additional hash power when they refer others to sign up.
BitConnect Use and Acceptance
BitConnect is currently a coin that is surrounded by controversy. There have been multiple reports that the whole platform is a big scam similar to MLM scams. Yet, despite these reports, the value of the digital asset continues to grow on the cryptocurrency exchanges. In fact, it is one of the fastest rising Altcoins in terms of market value.
Whether it is the newness of the platform or the scam reports, there aren’t many retailers who are yet on board to accept the BitConnect coin. Those who wish to explore this asset will find that it is more suitable as an investment. The coin can be purchased on a number of cryptocurrency exchanges. Individuals can also trade other currencies like Bitcoin for BitConnect coins.