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What is happening with Bitclub Network? And our Bitcoin mining earnings?

Anyone following my blogs will have noticed a more positive and more upbeat tonality the last time I wrote.

The Bitclub Network website was back up (after being down for quite an unnerving time) and we were back on www.blockchain.com’s hashrate distribution piechart (much to the relief of I’m sure, countless Bitclub Network members).

Also, the latest update – posted in members’ back offices – carried positive, or let’s call it “encouraging” snippets of information. (For those who still haven’t seen the latest update of September 13th, here’s a copy and paste below)

BitClub News

September 13th – Back Online! Important Updates

Included in this update…

Downtime Update

Reconciled Balances

New Sign ups Disabled

Mining Pool Update

Downtime 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).
  1. 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.
  1. 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.
  1. 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!

Sincerely,

BCN Support Team!

Following all the negativity expressed by many Bitclub Network members over the recent past, it was good to see some positive things happening.

Aside from the Bitclub Network website being back live, there was the stated intention of mining Bitcoin for a further 1 000 days. In other words, Bitclub was NOT going to go the way of other Bitcoin mining operations – some of which have closed down, losing their investors all they had put in.

This good news elicited a sigh of relief from many of our team members (those who have been keeping a close eye on things, at any rate). So it was with disappointment that this new-found positivity was so short-lived.

Within days, we were again fielding calls, emails and whatsapp messages of frustration: why was it so difficult to upload documents pertaining to KYC (Know Your Customer)? Why was the website always crashing? And now, even more concerning: why has Bitclub Network once again slipped off the Blockchain Bitcoin mining hashrate distribution piechart?

We had an answer to the first issue: GET UP AT 04H00 IN THE MORNING AND SEE TO YOUR KYC as the website bombs during South African daylight hours!!! Anyone who has done so, has managed to upload their documents successfully WITHOUT THE WEBSITE BOMBING. More than this, they have found their KYC to be approved within a few days. (It’s clear that the website cannot handle the huge numbers of members around the world trying to get their KYC done and out of the way).

My business colleague and I have managed to KYC all of our Bitclub Network positions successfully, so this is proof that it can be done.

That said, we are still being inundated with people asking us to help with their Bitclub Network KYC-ing (something we unfortunately cannot assist with, simply due to us focussing on our other cryptocurrency business, which is taking all of our time currently).

We have however made them aware that helping with the KYC-ing of their Bitclub positions is a possibility through our soon-to-be launched Captains in Crytpo business – see www.captainsincrypto.co.za

Our assistance will have to come at a cost though.

But back to Bitclub Network:

A bigger issue than the frustrations around KYC and the website bombing out daily, is the fact that we are once again not appearing on the Blockchain distribution piechart. We reappeared for a week or so, occupying last position – or second last position occasionally- but now we once again are nowhere to be found! Personally, I find this quite concerning.

To my (admittedly limited) knowledge of Bitcoin mining, it means that we are not hitting enough blocks to appear. And if this is the case, the question arises as to how Bitclub Network is paying our mining earnings. (Yes we ARE still being paid, as low as the mining earnings are).

If our earnings are NOT being paid through the mining of Bitcoin, are they being paid from people still joining Bitclub? On this note, I’m sure that the number of people joining Bitclub is nowhere near the number of people who joined a few years back, but I’m sure that there ARE new people still joining…

To my way of thinking, Bitclub Network needs to URGENTLY regain the confidence of members.

This can be done by a) getting us back onto the hashrate distribution piechart ASAP b) getting the mining earnings back to a level where it actually makes sense to buy mining pool shares and c) introduce products that actually resonate with most of the existing membership.

Unfortunately, many Bitclub Network members have moved onto what they view as greener pastures – be they other Bitcoin mining operations or other platforms in the cryptocurrency space. I have little doubt that some of them might return if they saw a sustained improvement in Bitclub’s fortunes – not to mention, it’s mining returns.

Right now, it’s not a very pretty – or comforting – picture unfortunately.

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 This is a business than can help people enter the cryptocurrency space and equip them with the knowledge to create wealth, whilst minimising risk. Gerard can be reached on +27 83 444 9888 and on gerard@kavonichone.co.za and more@bitclubnetwork.co.za

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