That just explains the rather obvious of "if BitConnect can make a profit of x, they can distribute money to everyone" as opposed to answering how they make x, which is typically the scam.

The pyramid structure is just how they can gather more money into the scheme. Dodgy YouTube videos like this don't really help: https://www.youtube.com/watch?v=CCXFK7DVaWA

BitConnect has almost the exact same opaque structure as many financial frauds (referral fees, opaque trading platform promising high returns): https://en.wikipedia.org/wiki/WinCapita

Apparently it is quite a big scheme already, as some youtube videos seem to suggest: https://www.youtube.com/watch?v=7MeREnecIFw