I must be honest: the last few weeks have been pretty stressful on the Bitclub Network front. With the Bitclub website being down and with Bitclub no longer appearing on the Blockchain hashrate distribution pie chart…(you’ll find the piechart showing all the major and most popular Bitcoin mining operations on www.blockchain.com) negative thoughts start going through your mind. Which are made worse fielding calls or receiving emails from Bitclub Network members asking whether Bitclub is a scam, or whether Bitclub is a pyramid scheme or ponzi scheme, and how the business is managing to pay commissions when they are no longer mining…and whether we as members are now at risk of losing all our money..etc
Since 2015, I have been a hardworking and loyal member of Bitclub in South Africa, but even I have been having doubts over the recent past.
As a regular blogger, I receive quite a bit of feedback from members, and one recent response in particular unnerved me a bit. Why? Because the gentleman concerned raised some pertinent points, as you’ll see below:
“What a coincidence that when Bitclub network disappeared from the Blockchain pie they happen to have a server problem? My assumption is that since there has been a decline in member sign ups there hasn’t been any more money to run the business or to pay withdrawals as many has since been pending! Because it has been a pyramid scheme or ponzi scheme. And the fact that no one is claiming to be the founder but a group of investors and marketers it’s clear that we dont have anyone who can take accountability for all of this! It hurt to see how some have taken out their children saving to invest in this and to never get a single penny out! I checked on google the bitcoin network hashrate and Bitclub seem to show on even if I dont know what it means! But its generated on the 10th of September 2019”
Here’s how I responded:
“This is an interesting take on things. I have never considered Bitclub to be a ponzi scheme, but there is no doubt that there are question marks over its current state of being – and how they are managing to pay commissions. That said, I am only a member as you are, and I can only go on what I see. There is an updated notice on the Bitclub website so you may want to check it out”.
That said, I’m happy to report that after seeing that the Bitclub Network website is finally back – and that we are back on the hashrate distribution piechart – my belief in the company has been (partially) restored. I say “partially” because my major gripe with Bitclub over the last few months has been over its extremely low btc mining earnings. Once these are restored to what they used to be when I first joined Bitclub a few years back, then I’d be happy to proclaim that my belief has been FULLY restored….
Here’s a copy and paste of the latest update – edited and shortened in places due to the fact that these updates are for the eyes of Bitclub Network members only, and are NOT for general consumption:
September 13th – Back Online! Important Updates
Included in this update…
- Reconciled Balances
- New Sign ups Disabled
- Mining Pool Update
As you have seen from the message on our homepage we experienced multiple drive failures and a complete meltdown of our database. Luckily, we were able to restore most of the information from back ups but there is some data that is lost forever and cannot be recovered.
One of the potential causes of this failure was the size of our database. Due to all of the commission records and partial share repurchases our database grew to over 2.5TB in size, which is HUGE for a database on our infrastructure. Every time we ran payment scripts or made changes to anything it would almost crash the server and you may have noticed the site crawling for days at a time.
While the website was down our team was busy optimizing the database and doing a much needed clean up effort on older data that was clogging things up. We also had the time to verify transactions and write scripts that reconciled all account data. This was a much needed effort that could only happen when the website was offline for an extended period of time, so this was kind of a blessing in disguise.
We also took the time to physically move into a new datacenter that is now more secure and actually sits inside one of our mining facilities. This gives us full control and allows us to scale a lot easier. We are now sitting in a much better position and you should notice the website will get faster and faster as we bring things online and continue to optimize.
New Sign ups Disabled
At this time we are going to disable all new sign ups for all products, including the $99 membership package. We need to stabilize the website and focus on fulfilling all of the mining contracts that have been sold. We hope to have some good news on turning the pools back on but for now they will remain down.
In the mean time we will continue to pay daily mining earnings in both the Bitcoin and ETH from GPU pool for as long as they are profitable. Partial shares will also continue to run and should help expand the pool and pay monthly electricity expenses on all existing contracts to keep the pools online.
Bitcoin Mining Pool Update
You may have noticed the hash power has not been showing on our main pool website for about two weeks now. Don’t worry, the hashpower is not lost, we have been mining to our backup pool and will continue to pay out daily mining earnings like we always have.
There are few factors at play here…
1. We are negotiating new terms in our some of our larger data centers so that we can continue to mine for 1,000 more days (or at least have the best chance to).
2. We are turning some of our old inventory into newer models. Over the past two months we have been prepping for the S17 and T17 in areas that it makes sense. The market for S9 is still very strong but we see a major shift happening as the halving approaches and our main goal is to survive and thrive beyond next May’s halving.
3. We are working on some very large JV deals with some other companies that may help us significantly cut costs and piggy back each other to be more sustainable.
4. We are upgrading our mining pool and will be moving to cut the latency even further by deploying new servers at the locations of our data centers. We believe we can improve hashpower and efficiency and the added benefit of lower latency will help in claiming the block and reducing orphans.
As you know from previous updates we have been constantly working to improve our mining the last 12 months. Before 2018 it was very easy and there was a lot of margin to be made so we could afford to move fast and freely. With the crash in 2018 and the recovery from now until then, its very important that we act strategically and deploy our machines in profitable situations that will remain profitable for years to come.
We feel like we are finally getting to a point where we can see the light at the end of the tunnel and we should start to see the fruits of all this work coming to life.
At the very least our main goal from this day forward is to continue to mine for 1,000 days from when we take our last contract and fulfill our promise on behalf of all members. Its our hope that we will see another big opportunity after the halving next year, so we are doing the proper things now to be in position to make another run with machines that will last for a long time.
Of course it will also help to see Bitcoin make another run (which we think is coming early next year leading up to the halving event).
We want to thank all of our loyal members who have stuck by us through thick and thin. Many of you have made incredible returns and we hope you continue to stay positive that we can make a big comeback in 2020 and beyond!
-BCN Support Team!
Having gone through this update, it’s clear that there are a number of positives. For me, the most important one is that Bitclub intends being around for at least the next few years. This fact alone should pacify many of the “doubters”. The other is that a pause on the sale of new mining pools is encouraging news, and can only….or should I say, SHOULD ONLY…be good for mining earnings going forward.
My biggest gripe, as many readers of my blogs will know, and which I attested to previously, is that the mining earnings over the last year or more have been terrible. Just this fact alone has elicited MANY complaints and a lot of negative word-of-mouth.
If through the halting of new Bitcoin mining pool sales (let’s hope it’s not a momentary pause), Bitclub can significantly increase our mining earnings, the complaining will be die down, and people like me will more open to “recruiting” again. (I’m not a fan of the word “recruiting”…maybe “sharing the Bitclub opportunity” would be a better way of putting it…)
Whilst I won’t be recommending the purchasing of Bitclub Network btc mining pool shares (even if they could be purchased) with the mining earnings being as they are, joining Bitclub Network with an eye on the future COULD make sense…but ONLY once a an uptick in mining earnings is evident and shown to be sustainable. For one thing, Bitclub Network’s compensation plan remains one of the best in the network marketing industry..
This said, I’ll be focussed on my OTHER cryptocurrency business: showing people the huge importance of earning euros, accumulating gold and accumulating as many of our gold-backed cryptocurrency as possible….
Gerard Kavonic was one of 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 Network, you should register under that person. 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 and his business partner Derek are also in the process of launching their CAPTAINS IN CRYPTO business. See www.captainsincrypto.co.za Gerard can be reached on +27 83 444 9888 and on email@example.com and firstname.lastname@example.org