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:

  1. There were quite a few people with success stories, some of these people claimed to be making some crazy incomes.
  2. 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.
  3. 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.

bitconnect interest tiers

BitConnect interest tiers

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.

the bitconnect experiment

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

the bitconnect experiment

$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.

You can sign up at BitConnect here. Its free to sign up and if you use this link I get a referral bonus so that would be super cool 🙂

I encourage you guys to check back to follow my progress!

You guys can also check my progress on my youtube channel here!

How To Make Money With Bitcoins

the bitcoin experiment

Hey guys Dave here…I know, I know its been forever since my last post but what can I say life is BUSYYYYYYY! For those of you that are new, I am all about passive income. Aside from being a great idea, passive income has grown into hobby of mine. I mainly invest in rental properties, you can read about them here, here, and here, today, however, we are going to be discussing bitcoin.

What are Bitcoins?

Bitcoin is one of those things you wish you had a time machine to go back and invest from the bottom. Bitcoin is a new currency that was created in 2009 by a mysterious person under the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name.

How the heck do you make money with Bitcoins?

Buy and sell them like a stock trader!

Well think of bitcoins like a stock on the NASDAQ, the price vs the USD is ever changing. Meaning you can potentially make money by buying low and selling high. The best thing about bitcoins is that lately,they have skyrocketed in value. When first introduced in 2013 bitcoins maintained a value of around $20 each, as of today October 8, 2017 the bitcoin has a value of approximately $4600 dollars. Let’s think about that for a second. If someone would have purchased 100 bitcoins at $20 each they would have invested 20K which at todays value would now be worth $460K in just 3 years. But since hindsight is 20/20 and we don’t have access to time machines, we can only move forward. Check out the current price of Bitcoin for today here!

Make your own bitcoins.

how to make money with bitcoins

Yea you read that right you can make your own. I mentioned this a while back in my previous post on 25 side hustles you can start today. The processed is called mining. The mining process requires the use of specialized computers that solve complex equations on the bitcoin blockchain extremely fast. You are rewarded by this with fragments of bitcoin. This process can take a while and is power intensive meaning that one of the biggest expenses after purchasing this hardware is going to be electricity. Most people who invest in this hardware and electricity consumption are usually able to turn a decent profit by mining and then selling their bitcoins. I will go more in depth with this process in a later post as it can get complicated. Here is an example of a mining rig on the right! If you set up a few of these, it can be a nice source of passive income.

Buying Bitcoins

Where do you buy bitcoins? Well before you can buy bitcoins you need a program or app called a bitcoin wallet. A bitcoin wallet is how you save your bitcoins or other cryptocurrency. There are many out there but I use Coinbase. It was the highest rated app in the app store and works well on my phone. The cool thing about Coinbase is that you can also purchase bitcoins directly through the app at market price. I know what your thinking…But Dave, didnt you just say bitcoins cost about $4600? Well heres the beauty of bitcoin, you do not have to buy a full bitcoin. exchange any amount of dollars for its value in bitcoin.

Think of bitcoin like a large pizza, lets say you have $2300 you want to invest, you simply type in the dollar amount and then you are given the equivalent slice of the pie. In this example you would be getting half or 0.5 bitcoins.
If you sign up at Coinbase here you can get $10 worth of bitcoin FREE, and then they give me $10 for referring you so hook me up 🙂

The Bitcoin Experiment

the bitcoin experiment

I bought myself some bitcoin 🙂

I’m not gonna lie..I’ve known about bitcoins for quite some while but had never taken time to really understand it until recently. After much research, I believe that the bitcoin is going to continue to raise in value. Some analyst think that the price will reach a million dollars usd. While I’m not sure about that I definitely feel like its the wave of the future and as of the last few

While I’m not sure about that I definitely feel like its the wave of the future and as of the last few months the price has made some fantastic gains. That said, I’ve put my money where my mouth is and have invested a small $500 investment into bitcoin. I am going to let this sit for 365 days. At the time of writing this I am 1 day into this challenge because bitcoin prices are changing 24/7, even though i purchased these on a saturday the price has already increased $10 higher than my initial investment. I challenge you if you can afford it to also invest $500 into bitcoin. I suggest checking out price charts like this and buying when the price dips.

Final Thoughts

I personally feel super confidently about this investment and I don’t like to throw my money at investments with low probablity of success. That being said, this is an investment so its possible to lose money. Never invest more than you can afford to lose. Not only here this is just a good life principal when it comes to investing. I will keep you guys updated on my journey.