Bitcoin Step Review: Confusing Russian cycler Ponzi
Bitcoin Step provide no information on their website about who owns or runs the business.
The Bitcoin Step website domain (“bitcoinstep.com”) was privately registered on August 21st, 2016.
There’s a good possibility Bitcoin Step is being operated by a Russian admin. This is supported by
- Russian used in the Bitcoin Step website source-code
- Russian testimonials featured on the site
- the Bitcoin Step website being hosted in Russia
- Russian being the second offered language after the default English
- Russia is the second largest source of traffic to the Bitcoin Step website (after Germany)
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 Step Product Line
Bitcoin Step has no retailable products or services, with affiliates only able to market Bitcoin Step affiliate membership itself.
Participation in the Bitcoin Step income opportunity as an affiliate provides access to “business development tools”.
The Bitcoin Step Compensation Plan
Bitcoin Step appears to be a basic matrix cycler, however the official presentation of the plan is pretty confusing.
I’ve done my best to make sense of what’s presented on the Bitcoin Step website below.
Matrix sizes used in the Bitcoin Step website include 2×3 and 2×4.
A 2×3 matrix places a Bitcoin Step 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 these two positions into another two positions each (4 positions).
The third level of the matrix is generated in the same manner and houses 8 positions (14 in total).
A 2×4 matrix adds an additional fourth level to the matrix (16 positions), for a total of 30 positions.
A Bitcoin Step affiliate signs up and purchases a position in the first tier of the cycler (2×4 matrix).
Commissions are paid when a matrix is filled, which also pushes the affiliates position into the next cycler tier as follows:
- Matrix 1 (2×4 matrix, positions cost 0.05 BTC) – 0.25 BTC commission, creates a new Matrix 1 position and cycles into Matrix 2
- Matrix 2 (2×3 matrix) – 0.5 BTC commission, creates a new Matrix 2 position and cycles into Matrix 3
- Matrix 3 (2×3 matrix) – 7 BTC commission, creates a new Matrix 3 position and cycles into Matrix 4
- Matrix 4 (2×4 matrix) – 82.75 BTC commission and creates a new Matrix 4 position
There also appears to be recruitment commissions paid out. These commissions are attached to an additional fee charged to unlock access to each matrix level (presumably you can’t earn on each level unless the fee is paid).
- Certificate 1 (0.01 BTC) – unlocks Matrix 1, no commission
- Certificate 2 (0.1 BTC) – unlocks Matrix 2, 0.1 BTC commission paid on 25 recruits
- Certificate 3 (0.3 BTC) – unlocks Matrix 3, 0.3 BTC commission paid on 125 recruits
- Certificate 4 (2 BTC) – unlocks Matrix 4, 2 BTC commission paid on 625 recruits
Joining Bitcoin Step
Bitcoin Step affiliate membership costs between 0.06 BTC (0.01 BTC “certificate” and 0.05 BTC matrix position) and 2.46 BTC.
Conclusion
Whether something was lost in translation from Russian I can’t say for sure, but Bitcoin Step’s overly complicated compensation plan doesn’t translate well into English.
From what I’ve been able to work out it’s a Ponzi cycler with a matrix-based pyramid recruitment component.
Either way nothing is being marketed to or sold to retail customers, so it’s the same old Ponzi story.
Once Bitcoin Step affiliate recruitment dies down so too will new funds entering the scheme. This will see the cyclers slow down and eventually stall, leaving the majority of Bitcoin Step affiliates out of pocket.
Why confusing ? Every thing is cleare here you invite one person and get from him 100 %, and even in other level you get 100 % from the second 0.1 from the third 0.3 and from the fourth 2 bitcoin from each one you invite.
And the owner is Vitaliy Konavalov, I know him and I have him in my contacts in skype, he is a russian entrepreneur living in Germany.
I feel some rasism here, why you keep repeating the word russian, the program is paying and working well where is the problem here?
The presentation on the Bitcoin Step website is terrible.
Right, because “Russian” is a race now is it?
Because Russian scammers such as yourself go to great lengths to mask the fact that a company is run by Russians.
It’s always amusing to unravel the bullshit and reveal an opportunity is run by Russians.
In my almost ten years of covering the MLM industry I’ve yet to see a legitimate MLM company operated out of Russia. Do any even exist?
Is there any wonder “Russia” is synonymous with “scam” in the MLM industry?
Whether you’re personally stealing from people through Bitcoin Step is irrelevant. It’s a Ponzi cycler scam, that’s the problem.
First of all I am not russian but Algerian, second I am not scammer because I don’t create websites that doesn’t pay to people, third the website is still paying to people and a lot of people earn very good money onit, you can check alexa rank!
who is hiding that the ower is russian ? who said that is a company? It’s a legit website that hepls people to make money, and we are teaching people about bitcoin 1, and showing people how to improve in internet marketing 2, so in fact they pay 0.01 bitcoin to learn.
sometimes I talk with my referral more than 2 hours by skype to show him a lot of stuff like creating youtube channel, groups in facebook, how to be famous ect…
If you are so professional so tell me something better that this one ?
Could have fooled me with the .ru email and blogspot account.
You are a scammer because you participate in scams.
And will continue to do so until recruitment dries up. That doesn’t make Bitcoin Step any less of a Ponzi scheme.
The only thing scams like Bitcoin Step teach people about bitcoin is how to lose it.
A better scam? Stop being a lazy ass and do your own due diligence.
I will answer you blogspot ru because I am living in russia, Algerian living in Russia so what?
It’s not scam because it’s paying, if you don’t respect people and saying stuf like ass or something that means that you can’t prove any thing.
give me proves that it is a scam, or show me something better to work with! if you don’t so I will not waste my time here anymore!
Russia + MLM = scam.
Whether a scam “is paying” or not is irrelevant. Bitcoin Step is a Ponzi scheme, therefore it’s a scam.
Solid logic there.
Nothing worse than a self-entitled scammer.
Is that a promise ???