One of the downsides of having an online Bitclub Network presence is the number of questions (or complaints) I receive about Bitclub’s mining pool earnings– especially recently. Not a day goes by that I don’t get calls or emails asking me to explain the mining earnings, and in particular, why they are so low. Despite me telling me telling them that I am merely a member (just as they are), and that I am NO Bitcoin mining expert, I find myself explaining that low mining earnings are not so much the fault of Bitclub but of the Bitcoin mining industry per se.
Not that this relieves the unhappiness and disappointment of those who are in possession of Bitclub mining shares. Fact is, Bitclub Network’s mining earnings ARE low and have been for a while now.
When I first joined Bitclub Network in South Africa back in 2015 (I’m a Master Builder and have been for some time), the mining earnings were very good – averaging between 3 and 5% per month. Over the last year or so, the returns have been less than 1%. This is a MAJOR drop and it’s absolutely understandable that people are upset.
The sad reality is that the $599 (almost R8 500) price of a Pool 1 share is a lot of money to a lot of people in South Africa and to reward them with a pitiful monthly return after getting their hopes up upon joining is disappointing.
Not that it’s the fault of BitClub Network. It’s not.
Bitcoin mining has just not been profitable for a while now, and all Bitcoin mining operations have been delivering sub-par returns (if indeed they are still operating). Many Bitcoin miners have shut down and the members of those mining operations subsequently lost everything. At least Bitclub Network is still around, and still mining!
It’s latest update (posted earlier this month) explains the current situation. (I have removed sections of the update as the update is really for the eyes of Bitclub Network members only).
Bitcoin Mining Pool Update
Over the past 12 months Bitcoin mining has been very tough to earn a profit. There were several months where the profit was zero and even approached negative territory but we pressed on mining and keeping the machines running because of our power contracts and commitments to pay out (no matter how small this daily profit became). We pushed through the bottom of this market and we survived it! However, in doing so we lost some key facilities and partners along the way. We had to renegotiate power contracts that were either expiring or just not profitable to keep running. This put us in a really tough position overall and we are doing everything we can right now to keep machines running and our pool growing. During the last 90 days we have actually added a lot of new power the pool, however we’ve been forced to shut down some machines that are no longer profitable and we have stopped some of the replacement maintenance on machines that are dying on us. The net effect has been very minimal on the pool but it has allowed us to make more profit by shifting things around. At this time we still have around 600 PH that is either sitting cold or has never been deployed due to poor market conditions. We are hoping we can get these back into good situations over the next few months and continue expanding up from there. Also, with the BTC price moving up it should increase the per share value of each mining share and increase the daily payouts. This will be seen in a few weeks after we pay the June power bills and begin mining in a better situation. We have to pay all of our bills up front to secure power for the month so there will be a lag, plus the normal 10 day lag that we have on the share payouts…..We have always said form the beginning that once mining is no longer profitable we will stop selling new mining contracts and all the existing contracts would continue on as long as there was profit to be made. Don’t worry we are not at this point, but we wanted to let you know that turning over these machines for the newer chips may push us to the edge and require us to stop selling…we wanted to let you know the situation because we are all in the same boat. Our members have proven to be resilient and we faced this same issue in late 2015 when mining was declared dead and our contracts were very unprofitable. We don’t know what will happen this time around but it seems very familiar and just know that all of us on the corporate side will do everything we can to keep mining for as long as we can….
What comes through for me though is the honesty of this company. It has always been honest and this is an attribute that I’ve always appreciated about Bitclub Network. Of course, honesty doesn’t pay the bills and the explanation will not make the “complainers” happy. (Believe me, I’m one of them!).
As I’ve mentioned in previous blog articles I’ve written, I cannot recommend the purchasing of a Bitclub Network mining pool to anyone whilst the mining earnings are as they are. It just does not make sense of an investment. Not to me anyway.
The only instance in which I would advise people to join Bitclub currently is IF they are fully aware of, and OK with, the low mining earnings as they are and IF they intend to introduce others and build a big team, so as to take advantage of Bitclub Network’s generous compensation plan. Anyone wanting to just MINE Bitcoin would be better advised to put their money elsewhere….and look at buying a mining pool share in the future when HOPEFULLY the Bitcoin price is a lot higher and the Bitcoin mining share payouts have increased to a point where they make sense.
When that may be, nobody can say…
In the meantime, I’m focused on a totally different (and extremely exciting) cryptocurrency project…one that fortunately DOESN’T involve the mining of Bitcoin!
Gerard Kavonic was amongst the first people to join Bitclub Network South Africa in 2015. He has the rank of Master Builder. He has two websites: www.bitclub.co.za and www.bitclubblog.com. Anyone wanting to join BitClub Network as a paid member must register as a free member first. If you’ve already been introduced to BitClub, you should register under that person, assuming that he or she has a good understanding of the business. If you don’t have anyone to register under, you’re welcome to join under username GERARD or on the following link: https://bitclubnetwork.com/gerard/signup.html Gerard can be reached on +27 83 444 9888 and on email@example.com and firstname.lastname@example.org