Looking at the cryptocurrency market at the time of this writing is a very scary thing. At the time of this writing, the only top 100 cryptocurrency that isn’t in the red is Tether (USDT).
Is the dream dead? Are those of us that invested in crypto doomed to lose it all?
News of the South Korean government threatening to crack down on cryptocurrency trading, along with China banning BitCoin mining has caused a fear, uncertainty, and doom (FUD). There is also a possibility that the market is undergoing a correction after the unreal ascent of prices in the last quarter of 2017. The upcoming Spring Festival and Lunar New Year festivities are also causing hits in the market. If we take profits in the West due to Christmas, you can guarantee that they are taking profits during one of the biggest holidays in the Far East.
Well, if you played it smart, investing in a combination of stable coins and affordable coins with future use cases, you will probably win in the end. The market will likely bounce back over time, with the current bleeding being a buying opportunity for those that missed the spike last year.
However, there is one platform that investors will be hurting from…
That Platform Is BitConnect
BitConnect was designed as a lending platform and promised immense gains if users locked in their BitCoin to be traded by a trading bot. Interest, which supposedly averaged 1% per day, would be paid on the loan in BitConnect Coin (BCC). Honestly, for many of us, the entire crypto market can seem “too good to be true,” but BitConnect screamed it.
Given my prior experience in a pyramid scheme, BitConnect was something that I absolutely did not want to enter. The now infamous videos of BitConnect seminars reminded me way too much of WFG conventions. This was enough to steer me away from the platform.
Maybe some people made profits. That is great for them. Sadly, most people probably took huge losses, with the BTC that was lended being paid back to users in BCC, which has been dumped almost 90% to $29.43 at the time of this writing. The coin is still on the market, and this may be yet another buying opportunity if the BitConnect team continues to offer a use case for the coin, but the ponzi-scheme-esque lending platform’s days are over.
The sad thing about BitConnect’s fall is that it will cause even more lack of confidence in the market. Government involvement in the cryptospace may also be unhealthy for the market, with the entire cryptospace being harmed just like the Second Amendment coming under attack due to the actions of a few lunatics.
Risk and Reward
Investing in anything is a risk, whether it be real estate, stocks, or cryptocurrency. Do your homework on where you put your money, and weigh the pros and cons. If you lost in BitConnect, hopefully you did not bet your life’s fortune on the platform. I honestly hope that you diversified into other investment vehicles.
Only invest what you can afford to lose, and remember that the journey to the moon will likely be a series of baby steps, with some faltering, not one massive leap.
Disclaimer: I am not a financial advisor. Please take everything that I say with a grain of salt. You are responsible for your own decisions in the market.