The Bitcoin Interest Misconception: We Are Not Like Bitconnect
We have had countless accusations that we are just another “Scam” like Bitconnect. I want to use this article to clear up this misconception about us.
The only similarity Bitcoin Interest has to Bitconnect is that it offers up interest payments to its users, but that’s where the similarities end. To participate in the Bitconnect platform users had to “lend” Bitconnect their coins, which means the second they sent their coins to Bitconnect they lost all control of their holdings, they put all their trust in a centralized system. A centralized system that promised large returns on their money lent which right from the start sounds unsustainable.
As you would have guessed, Bitconnect turned out to be a classic Ponzi scheme. They would use the money from new users coming in to pay out the old users. So the moment new money stopped coming in the jig was up, they could not keep up with returning money to their users as there was no mechanism to generate income from the lent money they had received.
Traditional interest bearing saving accounts can pay interest on your saved money because they have a way to generate income from your money. They use it for business loans, mortgages, and other investments. Bitconnect had no real mechanism for generating income to pay out these interest payments besides relying on new users to lend more money to the platform.
How is Bitcoin Interest Different from Bitconnect?
Bitcoin Interest has created a completely decentralized interest payments system that allows users to earn payments on coin holdings right from their wallets. Users will never have to send their coin holdings outside of their wallets to participate in receiving Interest Payments from Bitcoin Interest. This creates an opportunity for users to earn interest on their coin holdings with absolutely no risk to them!
What Mechanism Does Bitcoin Interest Use To Generate Coins For Their Interest Payments?
Unlike Bitconnect who had no real mechanism or way of proving how they were generating a return on lent money. Bitcoin Interest has created a double reward mechanism that can be verified and generates interest rewards for participants who parked their BCI coins in their wallets for a set period of time. Every time a block is solved on the Bitcoin Interest network, the miners are rewarded 12.5 BCI coins, and an additional reward of 1 BCI coins is generated and added to the ‘interest pool’ which will later be distributed to the participants at the end of the active interest round.
As you can see Bitcoin Interest has a real sustainable mechanism to reward users for saving their coin holdings and stabilizing the BCI markets from volatility.
The Conclusion
To make it very clear for our readers, Bitcoin Interest allows you to earn Interest Payments on your coin holdings that are in your wallet. You never have to trust us, or anyone else with your holdings to participate! This is why Bitcoin Interest is so different then Bitconnect. You don’t have to risk your coin holdings, we don’t promise unsustainable interest rates, and we have a real verifiable mechanism to generate rewards to facilitate the interest payments for our participants!
Thank you for taking the time to read our article, we hope you continue to support the Bitcoin Interest project. Stay tuned for more news and updates coming soon!
