This program has STOPPED paying! Do not invest there!

Analysis of Investment Plans — Part 2

In Part 1 of this review we started to analyze the BitCy investment plans.  We got though four of them and found that, in general, they offered invest rates that might be hard for the program to sustain.  One plan, in particular, offered an interest rate that was “off the chart.”  In this part of our review of BitCy, we’ll take a look at the remaining four investment plans that the company offers.

They all have a few things in common:

  • Your principal is included in your earnings
  • You are not paid your earnings until the plan is over
  • The term of the plan is counted in business days

As I indicated in Part 1 of the review,

There seems to be no reason for ending the last five plans in the program plans on the basis of the number of business days that have elapsed.  If earnings were being paid on a day by day basis, it might make some sense to do this.  However, since all your earnings are paid at the end of the investment term, there is no logic to this at all.  The only reason I can come up with is that, by giving the number of BUSINESS days, it obscures the fact that the corresponding number of CALENDAR days (which is when you receive your money!) is much much more.

So, to begin with, the first thing we should do with these four plans is to determine how many calendar days you will have to wait before you will receive your earnings.

Here is the information on each of the four plans as it is given in the BitCy website:

Deluxe
155% after 15 business days
0.250 – 1.25 BTC

Professional
1,200% after 60 business days
1.00 – 10.00 BTC

VIP
550% after 20 business days
5.0 – 12.5 BTC

Luxury
1,700% after 40 business days
2.50 – 10.0 BTC

Looking at the Deluxe plan, to convert 15 business days to calendar days, you first must recall that there are around 22 business days per month.  So, dividing 15 by 22, we find that 15 business days equals around 0.68 months.  Multiplying this by 30 days per month, you get that the term of this plan is around 21 calendar days long (three weeks).  If you do the same arithmetic for the other three investment plans, you get the following numbers of calendar days for each of them:

Deluxe:  21
Professional:  82
VIP:  28
Luxury:  55

So, the shortest term is for the Deluxe plan and it’s around three weeks long.  That’s probably the only plan that will be of interest to the online investor as the other three plans all have minimum investments of one Bitcoin or higher.  That’s in excess of $7,000 right now!  Few, if any online investors will sink that much money into a single investment program.  Even the Deluxe plan with a minimum deposit of 0.25 BTC will be beyond the reach of most investors.

Let’s look at the profitability of this investment plan.  To do that, we determine the daily net interest rate — or DNI — for the plan as this term includes both the effects of interest rate and length of the plan.  The Deluxe plan pays 155% total gross interest after 21 calendar days.  Subtracting 100% from this because it includes your original investment, you get a total net interest of 55%.  Dividing this by 21 days, you get a DNI of 2.62%.  Like the first three investment plans that we analyzed in Part 1 of this review, this DNI is a bit too high to expect it to be sustainable by the program in the long term.  As indicated in Part 1, we suggest that programs having investment plans with DNIs higher than around 2% might be in trouble when it comes to long term survival.

We can do the same arithmetic for the last three investment plans in the program (even though their minimum investments are probably prohibitively high) to come up with the following DNIs for each of them:

Deluxe:  2.62%
Professional:  13.4%
VIP:  16.1%
Luxury:  29.1%

Well, the DNIs of the last three investment plans are obscenely high, although not quite as bad as the 51% DNI for the Premium plan analyzed in Part 1 of the review.  To put this in perspective, assume an investment of one Bitcoin in the Professional plan.  Every day you will earn 13.4% of this.  That comes to 0.134 BTC per calendar day.  After the 82-calendar day period, this comes to a total of 11 BTC.  Of course, this is the 1,100% net profit that you expect.  But, the big hang-up is that you won’t see a penny of this money until the END of the investment plan — until 82 days after you make your deposit.  That’s close to three months.  How many HYIPs survive for three months?

Everything considered, an investor might still want to try his luck with the Deluxe plan.  While somewhat high, the DNI for this plan is not obscenely so.  Also, the term of the plan is short enough so that it is possible that the program might survive for one full investment cycle of the plan.  And, owing to the high minimum investments required, the last three plans will probably not be used.  This, in turn, will help the survivability of the overall program and, therefore, the Deluxe plan.

Other Features of the Program.

All transactions with BityCy are by means of Bitcoin.  The minimum deposit required takes place in the Casual plan and is 0.005 BTC, around $30 or $40.  The minimum withdrawal is 0.0005 BTC, around $3 or $4.  Deposits are automatic after three confirmations while withdrawals will be available in the investor’s account within 72 hours (three days) under normal circumstances.

BitCy has a decent affiliate program that pays you 7% of deposits made in the first level of your downline and 2% of deposits on the second.  You do not have to have an active deposit yourself in order to participate in the affiliate program.  BitCy also has a very nice Regional Representative program that ups these commissions to 10%, 2%, and 1% on deposits in the first three levels of the investor’s downline.  An active deposit of 0.125 BTC — around $1.000 — is required in order to become a Rep.  A nice feature of the website is a listing of Reps by the country in which they are located.  Both Skype and email contact information is given as well as a registration button that takes the viewer to the Rep’s replicated website so that he will get the sign-up as one of his own personal referrals.

Support from BitCy is good and consists of an email address, the standard support form, and most important, live chat.

In closing, I must acknowledge that I have been hard on BitCy in this review because of the high interest rates offered by some of its investment programs.  It’s unfortunately true that it will be hard for the company to survive if, indeed, investors make deposits in the investment plans that offer these rates.  If investment activity is confined to the investment plans having DNIs in the neighborhood of 2%, even though by our standards these interests are a  bit high, there might be a chance for the program to survive for a decent length of time.  So, with this thought in mind, the investor might want to consider making a deposit with BitCy in one of its lower interest plans that also have a relatively short term.  Any investment in an HYIP is risky.  This program might be even a little more so.  However, if you are the adventuresome type of investor, this may be your cup of tea.  However, please don’t put all your eggs in one basket and never invest more than you can afford to lose.  Good Luck!

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