The relatively secretive Mining pool, Bitclub has announced they will be making some huge changes to their operations over the next few months. Following a recent security exploit, Bitclub made a number of announcements to it’s current members:
The Security Exploit
A few days ago we found a security exploit that was uploaded into one of our testing environments through a trusted 3rd party provider. This 3rd party has verified the exploit on their end and after looking into the log records we know exactly what happened.
Luckily, our system is set up to lock itself down in case of a threat or unusual activity and this attempt was shut down very quickly (within 15 min). However, due to the access attained we are not taking any chances with member accounts so everyone will need reset their passwords and 2 factor authentications (Google Auth).
1. We are formalizing many aspects of BitClub Network. This includes creating multiple entities around the world to operate legally and above board in our key markets. It’s important we do this to protect everyone and you will see BitClub operating more like a “company” and less like a “club” of people. We will share these details with you in January
2. New websites. Our website is old (embarrassing old) and the content is very outdated as well. The good news is we just hired a really great in house team of designers who are already working to redo the website, the videos, the members area, and create a new skin for our mobile apps. We know this stuff is long overdue and we are very excited about this new marketing team.
3. BitClub and CoinPay apps. We have built the framework for a few different apps but we are going to be tying them together and really focusing on keeping our apps up to date and top notch. We have also hired dedicated guys to these projects and you will see a lot of emphasis moving toward using apps to access our products and services.
4. Marketing, Training, News, and Events. Our plan for 2018 is to completely revamp our marketing and communication so that new members get a lot more value out of their membership. This includes new training, new ticketing system, new live support for big leaders, planned events around the world, and much more communication from the corporate side.
5. New Products and Services. We have identified some new products and services that we plan to introduce in 2018. This will help add even more value to our membership while giving members additional options to earn volume. One of the key things will be our new debit card program that will allow you to hold cryptos (including ClubCoin)
6. CoinPay Opportunity. We will begin to focus on the next phase of BitClub Network which is the launch of CoinPay and the mass adoption of ClubCoin. You can read more about this one in the CoinPay update below.
7. Legal Structure. We are working on many different strategies to protect BitClub. This includes leaving all unfriendly markets and focusing on blockchain and bitcoin friendly countries. You will likely see us pull out of more markets in 2018 and this includes the US. If you are in the United States you will see a big crackdown coming as we formalize and protect this company so just be aware of this. We have warned on it many times.
Is Bitclub a Scam?
Since Bitclubs inception there have been continual rumours and accusations that the mining operation was no more than a scam, a ponzi scheme. Much of this concern has arisen due to the fact they offer Multi-level Marketing (MLM) to advertise the pool. MLM can be a very aggressive form of marketing due to the huge gains that can be made by those willing to push the product as hard as they can onto people. However, in no way does this make Bitclub a scam, in fact MLM is extremely common for online businesses to gain exposure without the need for expensive advertising campaigns.
While it is in our opinion much better to reward customers and investors for advertising a product or service rather than advertising giants like Google it does open the door for unethical practices, such as spam, deceptive and aggressive advertising. You could argue that it’s down to any potential customer to do the relevant research and be responsible for the choices they make, however when a company has secretive as Bitclub is offered up it’s very hard to find any information accept that which is pushed by it’s affiliate marketing scheme.
Another cause for concern has been that Bitclub is largely anonymous and has no individual(s) to hold accountable. Bitclub has always insisted it doesn’t have a CEO, there are no names to call upon listed on their website – Bitclub claim to be owned by no one person, it is a product of it’s investors. Which we would suggest was primarily done to avoid legal repercussions if the venture collapsed in it’s early days, however, the good news is – they didn’t and much to everyone’s surprise they are still going and still paying out profits to it’s investors.
In fact Bitclub are now the 7th largest Bitcoin mining pool in the World, representing around 4% of the networks hashing power:
Bitclub are stating that they wish to move away from this trust based system and give it a more ‘Corporate’ structure with entities located around the World which will represent Bitclub. This they say will help Bitclub protect what has already been achieved and also help to scale the business further.
The next step for BitClub is to move from being a “Club” of people operating on nothing more than trust to a more “Corporate” like structure that allows us to protect and continue to expand what we have.
You will see the “re-birth” of BitClub as we move to scale the operation and implement new policies and procedures for the next phase of our growth. We have already started to hire a new corporate team who is helping to execute this plan in the background and we couldn’t be more excited for what is coming in 2018.
Major updates will occur in the first quarter of 2018.
Is Bitclub Worth Investing in?
We can’t really answer that, only the investor can truly decide whether they are better off parting with their own money or not.
We invested in a few cloud mining programmes so we could offer a comparison review of the services. Bitclub was one of them and to be honest so far after three months Bitclub has by far been the best, Genesis have such long lead times before your hash power even begins that we have only just seen our purchased hash power begin mining.
Bitclub offer mining shares rather than actual hashrate, what this means is that you hold a percentage share of whichever mining pool you invest in. As more people invest your share decreases and your mining output will be less. However, as Bitclub add more Hashpower your output increases. After three months we have found that the outputs produced have actually increased as Bitclub have been adding some significant hashing power to the network.
It looks likely we’ll clear our initial Investment relatively easy, probably somewhere around month 9 – but we will do a full review of Bitclub and Genesis later next year.
If you are interested in Bitclub then for as little as $599 you can get involved with the smallest mining pool. Each pool lasts 1000 days and using their reinvestment strategy you can actually end up with unlimited mining with unlimited payouts, assuming the company doesn’t go into liquidation or Bitcoin become obsolete.
In the video below Bitclub founder Joby Weeks talks about Bitclub and financial freedom at the 2017 Anarchapulco conference:
Is it not better to just buy Bitcoin?
This is a common question people need to be asking themselves when they are considering getting involved with Cryptocurrency Mining, specifically Bitcoin.
Historically the answer to this question has gone both ways, in it’s early days of course Bitcoin was incredibly profitable to mine, although it could be argued that at just cents to purchase they were also extremely cheap to just buy outright. But either way you were going to be rich from very little investment, assuming you held onto your Bitcoin.
As time went on profitability dropped, and dropped. With plain old PC’s, mining Bitcoin had become like trying to find a specific grain of sand on the beach, a waste of time.
ASIC’s have since taken up the duty of mining, but because the hardware is specifically designed to mine using the SHA-256 algorithm it has few use cases, all of which are to mine cryptocurrency with the most commonly known one to be Bitcoin. A few companies have produced these over the years, however Bitmain have now pretty much monopolised the market with their Antminers.
Because of this monopoly that Bitmain have they also control the profitability of mining Bitcoin. There retail price of an Antminer and the amount sold into the market determines the profitability. Because their units represent the majority of the hashrate now for Bitcoin they can even predict the difficulty increases on the network by how many units they have sold.
Tricks to begin mining
There are couple things you can do to increase the chance of making some profits from mining. Most cloud mining services such as Bitclub peg the price of their packages to the dollar rather than Bitcoin, however accept payment in Bitcoin. So because the price of Bitcoin is extremely volatile you have the ability to purchase any given package at discount if you buy on a Bitcoin peak.
For example in the recent $20k Bitcoin peak it would of cost you considerably less in Bitcoin to purchase the $599 package at Bitclub compared to just a day later when Bitcoin lost 40% of its value.
If you mining at home and are purchasing antminers from Bitmain, we suggest doing the same. In fact we recently ordered a batch of Antminers. Because Bitmain only accept Bitcoin Cash now as payment we used the recent Bitcoin Cash pump to purchase half a dozen Antminers.
Another way to help increase the chances of making a profits, specifically for cloud mining is by planned reinvestment, work out the profits being generated from your mining package, work out the profit increases likely to be made by reinvesting a percentage of your profit. From these calculations you can determine profits possible, weighing up risk and reward.
If you mining at home, try to pay for electricity costs on Bitcoin price spikes. It’s far cheaper and thus far more profitable to cover your energy costs when Bitcoin is at $20k then when it’s at $13k. This is a crucial tactic for any avid home miner.
Most Bitcoin and cryptocurrency cloud mining operations offer incentives for referrals that you supply. Genesis Mining and Bitclub both offer a similar incentive plan although Bitclub by far offers the most profitable scheme. There are people out there making huge sums of money pushing these mining platforms onto their youtube and social media followers. Alternatively you may just have a few friends who want to get involved and you can just hand them your link – either way there is extra money to be made aside from just your mining returns.
Though any cloud mining which relies on the referral schemes to hit the ROI should be avoided and called out, neither Genesis mining or Bitclub seem to have this problem, although I have heard ROI’s not being hit with mining some of the other cryptocurrencies on Genesis Mining. But in all fairness to Genesis Mining they cannot predict profitability that accurately, cryptocurrency mining has many variables to consider.
Mining isn’t all about profit
Although primarily I understand most people will be going into Cryptocurrency mining to turn a profit, there are other reasons to get involved with mining.
The main reason we get involved with mining is to support the network, it doesn’t matter how insignificant your hashrate may feel when compared to the total hashrate, it all helps the network and increases decentralization of Bitcoin.
We mine at several cloud mining networks, we also have our own mining rigs, none of which will make us millionaires, however all support the network and help to decentralize the network. Many talk about the Cryptocurrency revolution and how it will change the World, but then go back to counting their profits with no intention of putting some money into this revolution.
In our experience if you time purchases right and manage electricity costs well (if applicable) you will make a profit, assuming you use a legit company for your mining hardware or cloud service. But in the rare case you make a loss, it’s unlikely to be much and you’ve helped support and decentralize the network the entire time. That’s something i’d be willing to pay for any way!
Disclaimer: Statements contained within this post do not represent the views or policies of anyone other than the writer. The information contained within this article is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities. The Block Crypt has invested in both Bitclub and Genesis Mining for review purposes. All links referring to Bitclub and Genesis Mining contained within this article are using the referral links from The Block Crypt accounts.