4 ms·

Most investors knew Madoff was cheating some how, they just all assumed they would get out in time.

bonestamp2 9y ago
Was bitconnect cheating though? I totally thought it was possible that they were a ponzi scheme until I ran my own bitcoin trading bot. But, don't take my word for... if you look at bitcoin trading bots that you can run yourself (many example on youtube of people running their own), bitconnect's return rate was significantly lower than typical bitcoin trading bots. So, if bitconnect was getting typical returns (and it's safe to say they should be getting at least 2%, which only puts them in the top ~60% of bitcoin bot operators), they could have been taking more than 1% for themselves and still returning their "high" level of returns -- without running any sort of ponzi scheme! Seeing my own bitcoin trading bot in action led me down the path of investigating stock trading bots and high speed trading within banks. The more I learned, the more I realized the real ponzi schemes are the national banks. That sounds crazy until you realize that with fractional reserve banking, they can take (for example) $1000 that you deposit and lend out 90% of it -- they only have to keep 10% of deposits deposits in reserve! Yet, most of them pay you less than 1%/year in interest. If I can make 4%/day on $1000 in my basement, how much do you think giant banks can make with your $1000? I would highly recommend running your own bitcoin trading bot if you've got $1000 to spare. I'll refrain from recommending a specific one for fear of sounding biased, but it will completely change your outlook on what bitconnect could be. More importantly, it'll probably make you a decent chunk of change that you can cash in at anytime (unlike bitconnect's CD model).
- teknologist 9y ago
  This is new to me. What does a Bitcoin trading bot do exactly? Do they trade alt-coins through exchanges?
  - bonestamp2 9y ago
    Yes, exactly. Bitconnect claimed to be running a trading bot but everyone said they were just running a ponzi scheme because the returns were about 1%/day... even though they refunded everyone's coins when they stopped the lending bot program. I've never heard of a ponzi scheme that can return everyone's money when it closes up. Not to mention, I think it's completely possible they were actually running a real trading bot because you can run your own trading bot and earn more than 1%/day very easily. People here really don't like to hear facts because it's easier to go with your gut feeling about some paradigm you've never heard of than doing the research, so they downvote any comment that says bitconnect was anything other than a ponzi scheme (or they'll call it a pyramid scheme if they really want to prove they don't know what they're talking about). The trading bot uses BTC, ETH or USDT as a base currency and then buys alt coins with the base currency then sells them back to the base currency of your choice using an exchange. If it's configured right, it will make dozens of trades a day for small profits, which add up through the day (and night). I personally run the bot called "Profit Trailer" and use it with the exchange "Binance". I use Binance because you can buy their coin and get lower fee trading by using their coin to pay for the fees.

Was bitconnect cheating though? I totally thought it was possible that they were a ponzi scheme until I ran my own bitcoin trading bot. But, don't take my word for... if you look at bitcoin trading bots that you can run yourself (many example on youtube of people running their own), bitconnect's return rate was significantly lower than typical bitcoin trading bots. So, if bitconnect was getting typical returns (and it's safe to say they should be getting at least 2%, which only puts them in the top ~60% of bitcoin bot operators), they could have been taking more than 1% for themselves and still returning their "high" level of returns -- without running any sort of ponzi scheme! Seeing my own bitcoin trading bot in action led me down the path of investigating stock trading bots and high speed trading within banks. The more I learned, the more I realized the real ponzi schemes are the national banks. That sounds crazy until you realize that with fractional reserve banking, they can take (for example) $1000 that you deposit and lend out 90% of it -- they only have to keep 10% of deposits deposits in reserve! Yet, most of them pay you less than 1%/year in interest. If I can make 4%/day on $1000 in my basement, how much do you think giant banks can make with your $1000? I would highly recommend running your own bitcoin trading bot if you've got $1000 to spare. I'll refrain from recommending a specific one for fear of sounding biased, but it will completely change your outlook on what bitconnect could be. More importantly, it'll probably make you a decent chunk of change that you can cash in at anytime (unlike bitconnect's CD model).

teknologist 9y ago
This is new to me. What does a Bitcoin trading bot do exactly? Do they trade alt-coins through exchanges?
- bonestamp2 9y ago
  Yes, exactly. Bitconnect claimed to be running a trading bot but everyone said they were just running a ponzi scheme because the returns were about 1%/day... even though they refunded everyone's coins when they stopped the lending bot program. I've never heard of a ponzi scheme that can return everyone's money when it closes up. Not to mention, I think it's completely possible they were actually running a real trading bot because you can run your own trading bot and earn more than 1%/day very easily. People here really don't like to hear facts because it's easier to go with your gut feeling about some paradigm you've never heard of than doing the research, so they downvote any comment that says bitconnect was anything other than a ponzi scheme (or they'll call it a pyramid scheme if they really want to prove they don't know what they're talking about). The trading bot uses BTC, ETH or USDT as a base currency and then buys alt coins with the base currency then sells them back to the base currency of your choice using an exchange. If it's configured right, it will make dozens of trades a day for small profits, which add up through the day (and night). I personally run the bot called "Profit Trailer" and use it with the exchange "Binance". I use Binance because you can buy their coin and get lower fee trading by using their coin to pay for the fees.