You know, some of the foul play in the crypto space is so bad that a new taxonomy is almost needed to describe the various actors, designs and perpetrators.
Here goes:
Bitconnect takes your Bitcoin and gives you its "currency" called BCC. It attracts bitcoin from new members by offering a good rate of return which its "trading bot" achieves because of "bitcoin volatility". It offers massive referral fees to those who convince others to obtain these returns too. Is the picture taking shape? They have your bitcoin and you have their BCC which you can trade with others (on their Bitconnect exchange only) who perceive its value to be massive on the basis of the significant returns .
Do you know what a ponzi scheme is?
A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
Ring a bell?
Now to that taxonomy
Evil genius
The creators obviously. Hallmarks: no transparency, no witnesses, no integrity. Ask yourself ... on the "downside" who is holding your bitcoin?
Sociopathic pimp
There are so many people right now, and will be so many more prepared to make significant money onboarding you and I to this scam. But its not a scam, is it? Who can say until it collapses? Maybe the trading bot is doing what no one has previously been able to do - consistently win against a volatile market. Or maybe he is Bernie Madoff trading from his cell (at least we wont have to hear of a trading bots penchant for $600 masseuses in the fall out of this one ... or will we ... maybe there is some virtual equivalent for bots).
Jolly colluder
I think that many are using Bitconnect knowing full well that it is a scam. They make money out of BCC's valuation, referral fees and interest payments. They are making hay!
At best this is gambling. Imagine a game where you could double your money on each toss of a coin (simple example). At any time you can loose all your money but while on the way up you are thrilled and happy. The trick is to get out before you loose. Bitconnect is like this except imagine a dice with "1" on five sides and "0" on one side and you loose when you roll a "0". While the dynamics of the ponzi are in full swing and the underlying markets are buoyant there is not much risk that you will loose out.
But ethically, you are part of a scam that is actively breaking the law and will ultimately unravel taking many many people's money.
Gormless participant
Amazed by the wonders of "trustless systems", "the blockchain" and the generally anarchistic crypto space rhetoric these people can simply see no wrong. And when the money starts rolling in they can see even less wrong. Its amazing to watch Bitconnect explode, but the question really is what is the event that will bring the pack of cards tumbling down? A bitcoin fork ... when will that happen?
Actively gormless participant
Whether knowing in their gut that Bitconnect is a scam or just blinded through desperation, these participants don't really care if it is a maliciously conceived and dangerous scam. It feels a bit like climate denial. Although faced with insurmountable evidence, a few people sowing seeds of doubt (in Bitconnect's case they are paid to say "its real!") seem able to stave off action that could prevent annihilation.
Invest and make money in a ponzi scheme, or do something more constructive with you crypto currencies. You know what to do. Like, pump and whatever this steemit post if you want to encourage others to stay on the right side of plain old right and wrong.