Bitconnect - What is the most popular Vietnamese keyword search on Google?

The amount of people looking for the phrase "Bitconnect" on Google today suddenly skyrocketed, what is the cause?

What is Bitconnect?

Bitconnect is a technology application finance model provided by a company named Bitconnect LTD established in 2016 in the United Kingdom.

It works similarly to financial trusts, that is, you invest money in your fund to do business for others and after a certain amount of time (commitment between the two parties) you will take interest or withdraw all of the My about.

However, Bitconnect offers a very high interest rate (over 30% per month), much higher than the interest rate of normal financial trust funds (10-15% per month) as well as deposit interest rates. Bank savings (5-8% / year). This makes many people believe that Bitconnect is a shady model.

Bitconnect sounds more like a gamble than an investment?

Bitconnect is also the name of an algorithmic currency (symbol: BCC). It was created at the time of the famous cryptocurrency algorithm , forming a fever called cryptocurrency - a general pre-algorithm.

This has attracted many people to invest in Bitconnect. They bought the Bitconnect algorithm and deposited the money for the major issuer, Bitconnect LTD, to keep and run a profitable business.

But the difference here is that all algorithmic currencies are born with a clear purpose, to solve the problems of life, while Bitconnect is born only to unreasonably generate profits for investors. private. In addition, when referring a new investor to Bitconnect, the referral will receive a commission. This once again proves that Bitconnect is a shady model and the same name algorithm currency is also a worthless currency.

Bitconnect is the most searched keyword on Google yesterday.

Why can Bitconnect pay users so high interest rates?

Bitconnect does not create any real value. That is why it cannot generate profits for platforms to pay investors every month. So where does this money come from?

The first is from the value of Bitcoin. When participating in Bitconnect, investors will have to transfer Bitcoin and buy Bitconnect contracts. The dealer will keep the investor's Bitcoin and the value of Bitcoin increases very rapidly in 2017. In fact, the amount of interest that investors receive is only part of the value of Bitcoin growth.

Followed by investors coming later. The dealer will take the investor's money later to pay interest to the previous investor. So, this model is maintained when there are continuously more members participating. That is also the reason when introducing a new investor to Bitconnect, the referral will receive a commission. This multi-level factor will help pull more new investors into the market, forming a pyramid model.

So what happens when the value of Bitcoin does not grow exponentially and Bitconnect does not attract more members?

Bitconnect suddenly disappeared

This morning 17/1, Bitconnect LTD suddenly announced to investors that the company officially stopped accepting new investments and temporarily closed the internal trading floor, making old investors cannot withdraw money.

This information immediately shocked the world and everyone thought that Bitconnect LTD had embraced money from investors to escape. The value of the Bitconnect algorithm currency is also so steep that it is not going to brake, from 400 USD to just 30 USD a dong.

By the afternoon of the same day, the website synthesized information on the cryptocurrency market, the most prominent of which was Coinmarketcap.com, which removed this algorithm currency from the listing list.

Many people have seriously questioned that Bitconnect is a fraud model!

Bitconnect's announcement yesterday.

Many Vietnamese participate in Bitconnect and similar models

Although there are no specific statistics, in Vietnam the number of participants investing in Bitconnect analog models is huge. Evidence is that the Facebook groups discussing Bitconnect have tens of thousands of participants. Therefore, when this model collapsed, many Vietnamese people suffered serious consequences.

Bitconnect's collapse is a warning for similar models.It is the metaphor of a multi-level business model in today's technology era, the time of Bitcoin and cryptic algorithmic currencies.

The image is tinged with multi-level smell on Bitconnect's website.

After the Bitconnect incident, after reading this article, hope that you will understand the nature of this model and draw your own lesson.