The BitConnect Experiment: $1,120 Invested my journey to 100K
Hey guys Dave here, for the new readers here, I am an investor and a part-time blogger, and my goal is to educate the masses on the rewards from passive income. I primarily invest in real estate, and frequently discuss my investments that generate money passively. I currently own 5 rental properties you can read about these investments here, here, here, and here.
Now while I do primarily talk about real estate investments, it’s important for you to know that I always keep my eyes open for the next thing. That being said today we are going to switch it up a bit. In my last post, The Bitcoin experiment, I discussed how I recently got involved investing in cryptocurrency. Just a little FYI about me, when I gain an interest in something new I DIVE IN! So after days of research, I came across something called BitConnect. BitConnect is a platform that allows you to lend BitCoin for interest payments. Upon first glance I was uninterested. I looked into peer to peer lending in the past and the returns seemed slow and like a poor use of investment money, I know people who swear by them but you have to invest in things that appeal to your inner investor. So long story short, a few days I found my way back to this site. I had been seeing stories of people making a killing with it. Under further investigation it seemed almost too good to be true people were boasting of incredibly high returns on investment.
I started researching what others were saying about this online. Overall I noticed 3 very interesting things:
- There were quite a few people with success stories, some of these people claimed to be making some crazy incomes.
- There were also quite a few people during my research phase calling BitConnect a scam. After analyzing these comments I found that all of the people seemed to be speaking from a speculative point and had not actually tried it.
- The third and maybe most important thing that I noticed is that upon heavy searching…and I’m a world class googler folks…I could not find one single person saying that they lost money. Seriously, I checked reddit and all the places people can’t wait to complain. How is it that this site has been in existence since 2016 and not one person complained.
So how does BitConnect work anyway?
I began researching and found out that this wasnt peer to peer lending at all. This was something much different. After some digging, I discovered BitConnect works by allowing user to lend their bitcoin to a lending bot for a fixed period of time. This lending bot is allegedly very good and takes advantage of the volatility involved when trading bitcoin, and uses your loan to increase buying power. While your loan is being held, you are rewarded with DAILY interest-only payments, which can be cashed out daily if you want. After your capital has been invested for the designated time you get it back and are able to cash it out or reinvest it. The period that your money is held is based on your investment, the investments have several tiers as seen below.
As you can see higher loans not only get shorter hold times, but they also as additional percentages as your tier increases.
The BitConnect Experiment
How much can you make with BitConnect?
The base percentages paid seem to vary between 0.04% – 1.9% this fluctates daily. Because of this, they implement an ROI calculator that averages the last 7 days to give you a pretty good idea of what kind of ROI you will get, I decided to figgure what kind of return I would get if I invested the bare minimum $100. In 30 days BitConnect claimed I would make $24.30 giving me a 24.30% ROI…what! That’s super high this means that it would take me less than 5 months to get my investment back, in addition to getting my capital released in 299 days. I HAD to try this.
At this point I was conflicted, we are taught to believe if something is too good to be true it probably is, I believe that…but the word probably is NOT 100%. I decided to give it a shot. The minimum investment was $100, I figured worst case scenario I lose $100.
Investing in BitConnect
The first thing I needed was bitcoin. Since I downloaded Coinbase when I started the bitcoin experiment I was good to go! SIDENOTE: Coinbase is an app/cryptocurrency exchange where you can buy bitcoin using a bank account or credit/debit card. You can Download Coinbase here and if you click this link you get an additional $10 in bitcoin when you spend $100.
Once the $100 worth of bitcoin was in my Coinbase bitcoin wallet, I then had to transfer this my BitConnect bitcoin wallet, and exchange them for $100 dollars of BitConnect tokens. I know this is a lot I’m going to try to post a tutorial on this soon. Once this done I was ready to lend. I eagerly submitted my $100 loan and received instant confirmation. My loan was locked in and I would soon find out if this was something worth being involved with.
The next day I checked my account I had been credited $0.60 not to bad, the next day had an even higher interest payment this time $1.73 this was lining up perfectly with the projection of the 24.30% ROI.
As someone who invest in real estate I can tell you this number is scary that it’s so high. Let’s look at these numbers and see what this REALLY means.
With these interest rates:
$100 = $24.30 per month in monthly interest
$1000 = $243.00 per month in monthly interest
$10,000 = $2430.00 per month in monthly interest payments
Getting excited yet….Ok one more
$100,000 = $24300.00 per MONTH in monthly interest payments….That’s NASTY BRO!
I’m from the real estate game where 100K will gross you around $1400-1600 per month my area. This above example doesn’t even factor in the additional bonuses given for investing in higher tiers.
That’s when it hit me “oh shit….this is real” I had no problem transferring these balances the interest payments were mind, but I needed more so then I started what was later dubbed the BitConnect experiment.
My goal with BitConnect:
My goal is to snowball this thing, first thing first though. I had to at least invest $1010 to get to the second tier. I ran the numbers through the calculator once more
$278.46 projected profit in 30 days off $1020…again this is insane. Notice the higher ROI due to being bumped up to the second tier.
Here is a video of me making my first $1020+ loan.
so I put my money where my mouth was and waited for the result the next day which I posted below
As you can see the profit is getting larger. With both loans, I am projected to earn close to $300 this month in passive income. I can dig that!
My BitConnect goal is to add loans in $1000 interest over the next 4 months until I have $5000 invested, at this point I should be averaging $1,250 per month in passive income, I plan to reinvest the monthly interest payments until my account reaches 100K…is this realistic….I don’t even know, but I’m gonna damn sure try and I’m gonna document the whole process for you guys to see.
I plan to do a video every 7 days to show updates and profits. I’m calling my goal the 100K challenge, and challenge you guys to go out and see how this works for you as well. I tell everyone don’t go crazy, try it with a $100 and sit back and see how you feel about it. If it works then increase your investments accordingly.
I encourage you guys to check back to follow my progress!
You guys can also check my progress on my youtube channel here!