BitClub Network ditch bitcoin payments for bitcoin cash
In what appears to be the latest effort to keep the BitClub Network Ponzi scheme chugging along, the company recently announced it would no longer be accepting or paying commissions in bitcoin.
In a notice sent to affiliates a few days ago, BitClub Network claimed they would cease accepting and paying commissions in bitcoin as of February 1st.
The cited reason for the switch was the rising cost of bitcoin transactions.
This is one of the most important decisions we have ever made … Please read and share!
We have reached a point where the Bitcoin Blockchain (BTC) has become a major burden.
It’s slow, it’s expensive, and it costs our business and, more importantly, our members (YOU) tens of thousands of dollars a day in transaction fees.
We hoped that a scaling solution would emerge, but that’s not the case, and while Bitcoin continues to gain in popularity, it’s no longer practical for a company like ours to accept it.
Since the beginning of the year, the average cost of a new member paying $ 99 for signing up is $ 17. We’ve seen times of $ 25 + and even some as high as $ 40, just to send Bitcoin for a bill. Ouch!
From February 1, we will not only accept Bitcoin Cash (BCH) Bitcoin (BTC), which means that you need to purchase Bitcoin cash from a stock exchange or wallet providers to register mining pools or buy.
You can also convert your existing BTC to BCH, but either way it’s just BCH!
It’s somewhat ironic that BitClub Network feels like they’re being ripped off with bitcoin transaction fees, but they’re happy to continue to profit in the ripping off of bitcoin users.
Since the beginning of the year, the average cost of a new member paying $ 99 for signing up is $ 17.
We’ve seen times of $ 25 + and even some as high as $ 40, just to send Bitcoin for a bill. Ouch!
As a company we are mixed with this decision because Bitcoin is really great for miners right now.
All of these high fees will be passed on to the blocks and eventually taken down into the pocket of each one.
Currently, each block contains between 4-5 Bitcoin (currently about $ 60,000- $ 75,000) transaction fees, which are included in the 12.5 reward.
In some cases we hit blocks with 10+ BTC and the highest was 11.3 bitcoin in a block (block # 500756).
With so much profit, we will continue to pay Bitcoin mines and all mining wins in Bitcoin.
However, we no longer accept Bitcoin for payments and all commissions are also paid in Bitcoin Cash.
BitClub Network is arguably one of the oldest, if not the oldest MLM mining pool Ponzi schemes still in operation today.
BitClub Network launched in mid 2014 on the initial promise of a 1000 day ROI contract.
The company does engage in some mining, but likely nowhere near enough to cover affiliate ROI payments – leading to the recycling of newly invested funds to cover the difference.
Despite the price of bitcoin has increased steadily since BitClub Network launched, the company still ran into trouble when it approached the two-year mark.
This is typically when ROI liabilities of online Ponzi schemes spiral out of control.
BitClub Network’s answer was to terminate early investor contracts, well before their 1000 day maturity period.
Had the company been exclusively using revenue generated mining to pay ROIs on each of these contracts, there shouldn’t have been a problem.
In a second attempt to prolong the scheme, last year BitClub Network announced ClubCoin.
Unfortunately that didn’t go anywhere, and so now the company is once again trying to squeeze as much as it can out of every invested dollar by switching to a cheaper altcoin.
Rather than disclose evidence that proved they aren’t recycling newly invested funds to pay off existing investors, BitClub Network abandoned the US in April, 2016.
Two years earlier the owners of BitClub Network, believed to be former Zeek Rewards Ponzi veterans, confirmed they had no intention of operating the company legally.
Today BitClub Network is primarily being kept alive by new investment from Japan and South Africa.
The reduced overhead will stretch invested funds and mining profits a bit farther, but when the time comes to cover the current 2000 day contracts… well, you know how this is going to end.