With all the controversy surrounding Bitconnect and allegations of it being a massive Ponzi scheme, there is no wonder that BitconnectX is getting a lot of negative opinions thrown at it. There is a lot of talk going around that this is just going to be a scam on top of an existing scam. But is it really? Is BitconnectX a scam? Or could this be a great investment opportunity?
In this review of BitconnectX I’ll be going over what it is, whats different about it from the old Bitconnect, and some concerns that I have with it.
BitconnectX is Bitconnect’s newest cryptocurrency release. Basically the coin is just your pretty typical cryptocurrency. It doesn’t claim to do anything fancy, it doesn’t claim to save the word…. its just a cryptocurrency that is to be used as a symbol of value, just like the almighty Bitcoin.
BitconnectX is a decentralized open-source crytpocurrency that is blockchain based and can be used for peer to peer transactions.
One thing new that BitconnectX brings to the table is that it supports proof of work (POW) along with proof of stake (POS). This means that you will be able to both mine the coin and hold the coin, earning transaction fees and securing the network by doing both.
The regular old BitConnect was based around proof of stake, where there was no mining.
In total there will be a 49 million coin supply, which is a pretty good number in my opinion. Bitcoin, for example, has a 21 million supply cap. So if things go according to plan and BitconnectX is adopted by the masses, then this really could skyrocket in price. But the big question is will it ever see this kind of adoption?
Overall there is still not a lot of information on everything on it. For example, some other things that I found they claim include that BitconnectX will have super fast transaction times and the lowest transaction fees, but they don’t give you any numbers to go off of. They mentioned both of these multiple times on their site yet offered no details about either.
The Core of BitconnectX
So besides BitconnectX supposedly being really fast with low transaction fees, which is what every cryptocurrency wants to be, the BitconnectX itself will be an exchange, which is maybe what the “x” in BitconnectX stands for.
I don’t know what all cryptocurrencies you will be able to exchange here because they really don’t give you much information. Basically all they say is that it will include and exchange of multiple cryptocurrencies. So my guess is that it will include all the big names that are out there but I really can’t imagine it becoming anywhere close to as big as Bittrex, Binance, GDAX, etc.
Some Serious Concerns
There are a lot of concerns that BitconnectX is just an addition to the alleged Bitconnect scam. Many people claim Bitconnect to be a Ponzi scheme and I don’t blame them. This whole operation resembles a ponzi in many ways from its pyramid-like recruitment structure. Even a lot of the bit time earners in Bitconnect aren’t exactly sure what the heck it is and are suspicious that it may be a ponzi… but they are still making money which is why they are still in it.
And now with the cease & desist letters that are being issued by state governments, such as Texas & North Carolina (Texas State Securities Board letter to Bitconnect Here), there is just more uncertainty added to the equation.
What is BitconnectX really? Many people are alleging that it is nothing more than a way to raise more funds to help keep the Bitconnect ponzi afloat. Because like we all know… ponzi’s are guaranteed to collapse in the long run.. and when they do collapse the majority of investors end up losing money rather than making money. They rely off of new investors buying in and when they stop flowing in at a fast enough pace things go downhill fast.
My Final Thoughts On It All
BitconnectX really isn’t bringing anything new to the table overall. I mean its different than Bitconnect but when you compare it to other cryptos out there it is nothing special by any means. At this point its just another cryptocurrency that is hyped with big claims but offers no real proof of some of them being true.
At this point the only real thing that I see going for BitconnectX is that there were a ton of people that made money with the regular Bitconnect… which would entice them along with newcomers to buy in. Other than that I don’t really see why there would be much adoption for this new cryptocurrency.
Anyways… that’s my little rant on it all. I don’t really know if its a scam or not and this is partly because they are not very transparent with what they are doing, which is another area of concern. They don’t really give you much info on anything.
My final piece of advice is to invest if you wish to but do not invest more than you are willing to lose. The entire crypto market is very volatile and and there are lots of likely ponzi’s out there like BTC Global & CryptoGain. If the many allegations are true… and this really is all just a fundraising method to keep the alleged Bitconnect ponzi afloat… then this is going to get bad fast.
Before you leave… what are your thoughts on it all? There is so much that is unknown about Bitconnect and BitconnectX that I would love to hear your thoughts on the whole thing. You can leave them in the comment section below.