We reported a few months ago that we were discontinuing our review of the BitClub Network as we were concerned it could be a scam.
That was based primarily on a post from 99 Bitcoins which raised certain concerns about the scheme.
So we felt it wasn’t worth risking our money or you potentially following us in.
However, some significant developments have occurred at the BitClub Network recently that have made us reconsider our position.
These are basically as follows:
– Firstly, there is independent verification that the BitClub Network does indeed own significant Bitcoin mining operations. That can be seen at the blockchain website and is represented in the pie chart below
As you can see, the BitClub Network owns 2.8% of the Bitcoin mining power available (hashrate), so we know the mining is real and given the exceptional growth in Bitcoin’s value, this mining should be very profitable.
– Secondly, we have seen interviews and footage of the BitClub CEO Russ Medlin, so that adds a degree of assurance when the owner of the scheme is prepared to show their face in public.
– Thirdly, they have made adjustments to the mining pool options so that you can now reinvest as much, or as little, as you want. This provides greater flexibility to the investment proposition offered by the BitClub Network, which is welcomed.
– Fourthly, they are making significant investment in upgrading their hashing power over the next few months, which will mean greater profits from the mining pools (although if more people join the mining pools then this could dilute the earnings somewhat).
All in all then it is looking like a much more credible, flexible and potentially profitable venture than it did previously so we will be making an investment here and doing a full in-depth review of the BitClub Network.
The other concern we had previously was that the returns we had seen from investors didn’t look that much better than if they had just bought Bitcoin and held it.
However, Bitcoin has enjoyed incredible growth over the last couple of years and we are not sure that will be maintained over the next couple of years. We may be wrong of course, but we would expect growth rates to be a little more gradual and not quite so exponential as they have been going forward.
That would make an investment in the BitClub Network more attractive if it turned out to be the case vis-a-vis just buying Bitcoin and holding it.
We shall see, but either way it seems worth testing out to see how it gets on. So we will run a live trial and will update our results here regularly.
BitClub Network – Update
3rd August 2017
We are discontinuing our review of BitClub Network, a service that offers to mine Bitcoin for you and share in the proceeds.
The reason for discontinuing the review is that we have been contacted by people warning this could be a scam.
After investigating a little ourselves, we are not sure either way, but there is enough of a risk that it could be a scam to warrant ending our interest in it.
There is a very good post here on a website called 99 Bitcoins outlining the red flags about the scheme and the possibility that it could be a Ponzi scheme.
Now you may ask why we don’t continue our review to discover if it is a scam or not.
Well, as pointed out in the post on 99 Bitcoin, the problem with it is that if it is a scam (and again we are not saying it is or it isn’t) then the whole thing could break down very suddenly, with all investors losing their money.
That is what happens with Ponzi schemes – they can keep going for quite a long time as long as money is coming in from new investors to pay off current investors. But if the influx of new investors stops, you can have a problem if there isn’t enough money being generated from the investment scheme itself.
Websites involving Bitcoin have been known to shut down suddenly without warning and with money invested being lost – and obviously with something like this it is not regulated by the FCA or any body like that, so you have no chance of getting your money back.
So we could run a review for six months, a year, longer even and everything could be running fine, with revenues being generated. At that point we would have to give it a positive rating based on the performance.
But then if things did suddenly collapse and it went bust, it would be too late. It would be no good us turning round and saying “sorry it’s a scam” because your monies would be gone.
So all we can say is have a good look at the post on 99 Bitcoins and see what you think.
For us, a point that sticks out is that the kind of returns people are reporting in the comments section of that article could have been achieved just by purchasing some Bitcoin and holding it – without needing to be involved with the Bitclub Network and their mining operation.
That for us makes us wonder what the point in being involved with it is and moreover is a little suspicious.
In any event, as we say either way we cannot be sure if it is a scam. But we feel there are enough doubts raised to make us sound a warning to you so you can make your own mind up.
BitClub Network – New Review
18th July 2017
Over the last few years we have heard a lot about Bitcoin and have often wondered “what the dickens is it all about?”
There seem to be never-ending news stories about how this “cryptocurrency” is changing the world and all sorts of strange things happening around it.
Like many things when they are new and groundbreaking in the way Bitcoin is, there is also often a lot of confusion about what they actually are.
So we recently decided to do some digging and find out what all the fuss is about.
What is Bitcoin?
Well, first up, let’s start with what it is.
Bitcoin is a digital currency that allows people to conduct a transaction directly between themselves without a third party like a bank, Paypal or Western Union.
This has the advantage of meaning the transaction doesn’t have any fees and is direct.
It also allows people in some parts of the world who don’t have bank accounts but do have the internet to potentially trade.
There is a fixed amount of Bitcoin that will be created in a fixed timeframe, which gives it a stable base.
It is also not controlled by any bank, government or corporation.
Why So Much Excitement?
There has been a great deal of excitement around Bitcoin and you may be wondering why.
Well, in addition to the advantages mentioned above about reducing fees for financial transactions and purchases as well as decentralising currency, Bitcoin has been generating excitement for another reason.
That reason has been it’s skyrocketing value!
Just this year, Bitcoin has gone from being worth $997 at the start of January to $2373 at the time of writing.
But that’s nothing compared to its rise since May last year, when it was valued at $237 – so that’s a 1000% increase.
Or go back five years and it was worth just $10 – so that’s a 23,000% increase to today!
Or in other words, if you had bought $1,000 worth five years ago it would be worth $230,000 now.
Here are the gains in chart format:
It’s pretty insane and in one sense, you might think that getting in now would mean you’ve “missed the boat” so to speak.
But there are some analysts who say the Bitcoin revolution has only just begun and still has plenty of miles to run, claiming that it could be worth many times its current value in ten or fifteen years’ time.
Obviously no-one can say for sure where the value of Bitcoin is ultimately going to end up, but there are opportunities to be part of the revolution around it whatever happens to its value in the long run.
What is BitClub Network?
One such opportunity we heard about recently around the Bitcoin phenomenon piqued our interest.
This is something called the BitClub Network.
As the name suggests, it is a club that is involved with taking advantage of the Bitcoin revolution.
Basically they say that as a member there are a number of advantages:
You can receive a share of the benefits of their “mining” of Bitcoin (mining is the backbone that allows Bitcoin to function. New Bitcoins are created as a reward for miners who secure & verify payments in the blockchain).
So by receiving a share of the Bitcoin they mine, you should receive considerably more Bitcoin overall then if you just bought some Bitcoin and held on to it.
Secondly, they are starting to mine other cryptocurrencies that you can take advantage of.
And finally they say they are creating their own currency which members will get the benefits of.
It looks like an interesting enough opportunity to test out, so we are going to join and run a trial of this and see how much we make from it.
The beauty of it is that it’s a completely passive investment so once you have joined and paid up you don’t need to do anything.
It costs $99 to become a member and then you have the choice of investing in shares of their mining pool, starting at $500 and going up to $2000.
Anyway, we will update this page periodically during the trial on how things are going.