Bitcoin Hive Review: Four-tier bitcoin based cash gifting
There is no information on the Bitcoin Hive website indicating who owns or runs the business.
The Bitcoin Hive website domain (“bitcoinhive.net”) was registered privately on the 10th of November, 2016.
If you visit the Bitcoin Hive website without an affiliate referral code, the site informs you that have been “invited by Bitcoin Hive Admin”.
If you then click on the yellow “register” button at the top of the page, the site then informs you that ‘you were invited by Lorraine du Plessis‘.
This is the only name that comes up when “Bitcoin Hive Admin”is the referring affiliate.
I was unable to find anything further regarding this individual in relation to Bitcoin Hive.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Bitcoin Hive Product Line
Bitcoin Hive has no retailable products or services, with affiliates only able to market Bitcoin Hive affiliate membership itself.
The Bitcoin Hive Compensation Plan
The Bitcoin Hive compensation plan sees affiliates gift money to eachother via a 2×4 matrix.
A 2×4 matrix places an affiliate at the top of a matrix, with two positions directly under them:
These two positions form the first level of the matrix.
The second level of the matrix is generated by splitting each of the two positions into another two positions each (4 positions).
The third and fourth levels of the matrix are generated in the same manner, housing 8 and 16 positions respectively.
In total, a complete 2×4 matrix houses 30 positions.
Each level of the matrix is an independent gifting tier, with a gifting payment requires to unlock it.
This gifting payment qualifies an affiliate to receive payments from other Bitcoin Hive affiliates as follows:
- level 1 – gift 0.02 BTC to the affiliate who recruited you and receive 0.02 BTC from two subsequently recruited affiliates
- level 2 – gift 0.03 BTC and receive 0.03 BTC from four affiliates
- level 3 – gift 0.1 BTC and receive 0.1 BTC from eight affiliates
- level 4 – gift 0.5 BTC and receive 0.5 BTC from sixteen affiliates
Joining Bitcoin Hive
Bitcoin Hive affiliate membership is tied to a minimum gifting payment of 0.03 BTC.
Full participation in the Bitcoin Hive MLM opportunity costs 0.65 BTC.
From the Bitcoin Hive website;
Our members will get attractive packages in their back office with each upgrade. 100% of your referrals upgrades go directly to your bitcoin wallet.
All transactions are exclusively between members with Bitcoin as the form of payment.
Affiliates paying affiliates in MLM is cash gifting.
The Bitcoin Hive business model sees nothing marketed to or sold to retail customers.
100% of commissions paid out are sourced from payments from other affiliates, making Bitcoin Hive a cash gifting scheme.
As with all cash gifting schemes, once recruitment of new affiliates dies down so too will payments within the scheme.
This will prompt a collapse, with any affiliates who haven’t scammed money out of other affiliates to cover their own costs losing out.
The anonymous Bitcoin Hive admin will have preloaded the company-wide Bitcoin Hive matrix, ensuring they receive the lion’s share of funds deposited into the scheme.
Affiliates get the leftover crumbs, ensuring the majority will lose money when Bitcoin Hive inevitably collapses.