Bitcoin Forum

Tell me what you guys think of this theory:

Usually when btc goes down in dollars, alts go up in btc, and vice versa, for fairly straightforward reasons.

The crashing that has happened in the past few days was not this. It was rather a major selloff of everything to go into dollars. Btc went way down against dollars and alts went way down against btc. Btc went under 10k and almost every single alt double digit reds against btc everyday for a week almost.

It was like whales were liquidating their alt positions and their btc positions all at once.

Im thinking these whales is bitconnect cashing in on their scam.

Users of bitconnect platform convert their BTC into dollars and then loan their dollars out for 1% per day returns. Lemmings flocked to do this.

Bitconnect said they have a magical trading bot that gets 1% a day. This bot is so obviously a lie for so many reasons that we won't go into here.

In the recent bull market of crypto for the past year you have no need for a bot if you have access to tons of capital that doesn't belong to you and obviously they took all the millions of dollars that were being thrown at them by the bitconnect lemmings and they bought cryptocoins with them. Total no brainer.

The problem is when the price of crypto levels off and the quantity of new lemmings drops off, then there is no way to give people 1% a day and still make any money. So they up and got out and liquidated their position.

Imagine the sheer whale size of their position after having access to all the capital that all the bitconnect lemmings were throwing at them.

Consider the timing of their ponzi scheme implosion right after a week of hardcore btc down vs dollar AND alt down vs btc, huge exodus to dollars.

Nope, bitconnet have nothing to do with this crash. Its just shitcoin a fake one and obviously a ponzi. They colapse when they colapse. In otherway its just like yearly trend that market fall until this deep in mid jan ( see 2015 2016 and 2017 chart)

Bitconnect is just ponzi sh*tcoin and cannot cause any crash.
It's only crashing the money of gullible who gave their money there...

Many in the crypto community mentioned over and over that was a big scam. Now the true reality has been exposed, and the coin value as dropped at the speed of light.

When someone promises you a big return in a short time, stay away and run.

I guess you are wrong from the begining :) When btc goes down in dollars or up - alts go down in any case. Altcoins grow when bitcoin keep steadily on same level only.

It is not Bitconnect. The whole thing started of two half news out of South Korea and China. Some big players grab the opportunity and the fake news were born. The mass panic got it to the next level and the rest is history.

Bitconecct is worthless, but harmless.

bitconnect was going to crash like that sooner or later because it's mathematically impossible.

and it's market cap was 0.05% of the total market cap. i don't think this is what caused this crash.

I think the Market crash caused Bitconnect to collapse. No more money to payout.

Interesting really i agree what happened to Bitconnect and the truth came to reality, But this coin was solidly proven perfect, so it was bad, but a lot of people profited from that currency. Therefore we must observe the promises and the real objective of each coin.

I did think of this theory today, but came to the conclusion it wasn't bitconnect that caused the crash. It was really the new year and news coming from Asia about banning cryptocurrency trading.

As we see there is not certain cause for all of happenings. I'm trying ti read every article or post about cause of this huge drop but I can't find any logical reason for this. Looks like actually most of us have no idea what caused this. I believe it will recover soon

For my theory BCC also has a bit effect on this but it alone couldn't make this there should be another reasons. Korea and China news was around for days not only this crash days

Do real investor invested in BCC? I don't think so ::)

No, bitconnect wasn't the cause of the crash (nobody knows what was the cause), the drop in the market has been going way before the Bitconnect scandal. I dare to say that it was the massive drop in the market that caused the bitconnect scammers to finally pull out before things got out of control.
But like other people said in this thread, it was tickingtime bomb waiting to go off, so glad this scamcoin is out of the market for good.

Well, it was inevitable and will happen eventually anyways. Just feeling sorry for those naive people with hopes for free cash without doing anything - studying the market, trading, learning proper invesment paths. All these ponzi projects are holding cryptoscene from developing further on.

The issue is just about raising the bitconnect and used the benefits to earn. There is absolutely nothing to blame because that`s what some see to earn a great deal and earn more profits.

Even in theory it is impossible, because bitconnect scam founders don't have such amount of bitcoin. It is about south korea.

Well bitconnect might be one that caused the earlier crash,but Mcafee twitted its JP Morgan whos doing it to get a perfect entry to get more BTCs from the people who had panic selling today,Bitconnect is a clear ponzi from the start,people whod lose a lot of money from it knows the risk of joining it so they can blame themselves for the rest of their life.

This. The market crash was down to people finding an excuse to sell when the Korean news came out (and the move down was helped by a lot of stop losses being triggered). It effed bitconnect badly and they collapsed as a result.

It's impossible that this correction is caused by Bitconnect. At its best Bitconnect market cap was $2.6Bn. The whole downfall started with fake news and greedy investors. After that the stop loss bots got activated and the market just jump upside down. Then the panic started. 
It is the other way around. Bitconnect just got the worst of it!

I hardly think Bitconnect caused the crash of the Bitcoin. The company was a scam and has inflicted damage on many people. Good thing they're gone now.

What did the BCC crash teach us?

* Don’t invest into projects that have anonymous teams, so not information could be found to verify how legit it is
* If it sounds to good it usually is. BCC was claiming to have trading bot to create profits but never provided a proof
* Avoide cryptocurrencies with referrals. Referrals mean people shilling dodgy cryptos
* Exchange manipulation. Most of the volume for BCC was on the BCC exchange, this means the team could easily manipulate the price
* DYOR
* Legit projects will always be better. Invest into cryptos with plan, partnership, legit team and products, legit exchange projects are exceptions

I believe that bad news from China and Korea caused the dip.
It was accentuated by many newbie investors who felt the FUD and pulled out.

It definitely is one of the reasons, but we had so many other negative news in the past couple of days;
Such as China and Germany trying to make laws against cryptos.

I think the same. Bitconnect crash made an important impact on the price. Bitcoin price was not increasing for weeks and it was stead waiting for an up or down movement. There was not so much news in the market -except short Korean fud- and Bitcoin crash was the one that pulled the trigger. Experienced community had no investment on it however an important amount of inexperienced users had invested in Bitconnect and that made a panic and negative effect on price of Bitcoin. I am sure it will recover soon, correction was necessary in the end.

I think the two are connected to some degree.

Someone posted yesterday that Bitconnect started cashing out their -- I mean other people's -- bitcoin deposits on Tuesday.  I don't know if that is true or not, I've been looking for confirmation but I can't find it.

But I think the real reason why Bitconnect finally cracked is because people were trying to get out of the market for the downturn, and attempting to withdraw their BTCs from Bitconnect.  They simply did not have enough Bitcoin to cover the amount of withdrawals requested -- which is the textbook signal that the Ponzi scheme is done and it's time for the scammer to cash out.  

Their exit strategy was already in play for days/weeks:

1. The fake DDoS started before the market crash.
2. The second part of their scam (BitConnectX) was announced earlier this month.
3. BCC was pumped from $220 to $420 on December 26th.

Why is the pump significant? It cut in half the amount of BCC needed to "pay out" the dollar denominated loans. Didn't they already have a huge amount of premined BCC? Yes, but apparently not enough to cover all the loans at the lower price. You might notice on CMC that the circulating supply of BCC has jumped up to close to the total supply. It is now in the 9 millions when previously CMC reported something in the 6 millions. Why would they care about distributing BCC - couldn't they just leave "dollars" locked in lending accounts? Circulating BCC is needed for the second part of their scam.