Mining Bitcoin, Trusting Bitcoin

Bitconnect

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Bitcoin. The name is looks like cash right? It’s worth $15,000 now. I don’t know how much it will cost you if you were to pluck from any of your favorite exchange as you read this. What if I decide to use the free press behind Bitcoin and create something close. Say, Bitcoin Cash or BitConnect. Sounds familiar? It does sound familiar and that’s why you should familiarize yourself with this new distributed technology.

Bitcoin rose from 2010-2014 ashes and is now riding high like a kite. It is the value behind it. Bitcoin is something worth investing in and why not? The coin is in demand and if you decide to lend it out in a platform that guarantees security of your asset through block chain then be sure of regular revenue stream.

BitConnect core business

BitConnect achieves this by utilizing its platform to decentralize and self-regulate the lending of BTC. This means that lenders are sure to gain interest since this is a peer to peer platform with BitConnect doing the market mix matching and lending out the coins themselves. All you have to do is send them yourBitcoins and sit back.

In the BitConnect platform, there are two important distinctions you should know. The first is the platform itself. It describes itself as a lending arena and to power the platform, their BitConnect Coins-BCC shall be in use. The maximum supply of this alt coin is set at 28M BCC. While at it, BitConnect utilize the proof of work which is a staple in Bitcoin legacy network and Proof of Stake for validation purposes.

Proof of Work and Proof of Stake?

The reason they use both of these protocols is simple. In the Proof of stake system, Bitcoin lenders will be rewarded with more BCC value tokens depending on the amount they already have in the BitConnect wallet. If ordinary citizens see seasoned investors getting rewarded by buying and holding onto BCC then they would be no doubt that they system is working and might even end up lending their valuable Bitcoins. This is purely psychological and a smart way of marketing their platform.

The use of Proof of Work is same. Verification of blocks needs to be competitive and to make this competitive and easy for miners, they use a different algorithm called Scrypt. Decrypting blocks using this algorithm is easy for miners and it is no wonder transacting on BitConnect platform is instantaneous.

This ease of transaction makes BCC tokens suitable for users who prefer shopping online. However, most BCC holders refer them as assets and looking for an opportunity to benefit from token’s capital gains and or interest.

A simple Disclaimer

Word of caution:

BitConnect has been flagged by UK authorities who seem this platform as a scam. They need the owners to come forward and provide the much needed legitimacy all because of their too good to be true rate of return. In fact on November 7, 2017 the UK government threatened to dissolve this Bitcoin lending platform within 2 months.

Many users in the block chain community tend to agree with the government assertions. Check this out and make your own decisions.

I just extracted one for reference purposes:

All affiliates who invest between $10K and $100K shall receive a ROI of up to 40% for the first 120 days and this shall be topped up with a further 30% bonus on ROI.

Why investment decision depends on you

When analyzed, that is a 1% ROI per day. There are no companies who offer such and this automatically fails the logic test. But’s it’s all on you.

The best time to invest on BCC tokens is after some form of clarification has been submitted to the UK government and authenticity confirmed.

Before then, explore other revenue generating options out there.

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