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There is no reason this scam can't continue as of yet, other than this thread IMO.
This is true.
The life of a ponzi is governed by many factors.
OMG, he used the Ponzi word again!
Just to refresh the memory a Ponzi Scheme is
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a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
That's a good enough working definition, although it implies that they are "all or nothing", but there's many shades of gray..
As Bernie Madoff showed, the "Front" is all important, it gives investors confidence and can actually make some money (not enough) in its own right.
A Ponzi doesn't have to be a complete fabrication, the more cred the better, leading to the classic "They've paid out for a long time, so they must be legit, and look they're trading/mining/doing stuff....."
With that in mind, the latest BitClub Network news
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Mining Update – Important News
The Bitcoin mining industry continues to expand rapidly, even with the mining reward being cut in half to 12.5 Bitcoin per block nobody seems to be slowing down and the network hashrate is growing at a record pace.
This is both good and bad… It’s good because it shows the mining industry is really strong and very optimistic about Bitcoin moving higher in the future. However, it’s also bad because miners are willing to continue mining at a loss just to keep accumulating more Bitcoin and this makes the ROI in the short term very low for everyone.
Eventually, the market will adjust and either the price of Bitcoin will shoot up, or the difficulty will drop making large scale operations like ours more profitable. Either way, our main goal is to help you accumulate more Bitcoin than you started with and to accomplish this goal we have decided to make a change to boost the payouts and make mining more profitable for future members
We understand some members are not going to like this change, but we have talked with many leaders to figure out the best solution and they all agree this a good idea so we are moving forward with it.
Here is what we are going to do…
All members who purchased a mining pool share during the early days between September 14th 2014 through June 30th 2015 have made back a substantial return on their original Bitcoin mining purchases.
These members have accumulated a lot of partial shares (some even have full shares they have earned) and they are simply taking up too much of the pool. Plus, everyone in this time frame has received ClubCoin at a 1:1 ratio and all Founders have received an additional 2,000 – 7,000 ClubCoin as an added bonus. Not to mention all the Founder 1 and Founder 2’s have a lifetime share in our Founder pools that receive 1% and .5% of all the Bitcoin we mine.
So after much consideration we have decided to stop payments on all the FULL shares purchased during this time. You will continue to earn daily on all the partial shares that you have accumulated and no changes will be made to your account, we are simply ending your shares early starting on September 1st and you will no longer be paid commissions on these full shares.
Why are we doing this?
It’s simple… By eliminating these early shares it will boost the daily payout on a per share basis for everyone else. It will also allow us to go back to paying for 1,000 days on all the contracts instead of 600 days (this is big)
We believe that mining hardware has reached a peak in technology. The 14/16nm chips are the top of the mountain and while there could be one more jump to 10/12nm chips, the added efficiency gained is so small that it’s not worth it to produce. So we are loading up on hardware right now because we believe these newest models can run for many years and in the right environment, they can easily last 1,000 days!.
By retiring these older shares we are able to go back to 1,000 days on ALL mining shares and not just new shares, so if you purchased a share that was only good for 600 days you will see an extra 400 days added to your mining time. We believe this longer payout is more in line with the future of the mining industry and our goal to help you accumulate more Bitcoin over the next 3-5 years!
Just to put this move in perspective, if you purchased a share during this time frame (before June 30th 2015) your purchase would have either bought an S3/S4 Antiminer or possibly even some Script Mining equipment that we had running in the early days when mining ALT coins.
Either way ALL of this equipment has either been liquidated or the machines are dead so your original contribution to the pool is no longer contributing any power or value (only your partial shares continue to) and for all new members joining today they are purchasing equipment that is 20x more efficient but they are only earning half because of all the older shares, so the decision was made to help balance this out and help everyone!
If you have an issue with us ending your contract early please open a support ticket and we will address your concerns, but we hope you understand this is a very fair way to provide increased value and allow members to continue mining in profit for years to come!
The Bitcoin mining industry continues to expand rapidly, even with the mining reward being cut in half to 12.5 Bitcoin per block nobody seems to be slowing down and the network hashrate is growing at a record pace.
This is both good and bad… It’s good because it shows the mining industry is really strong and very optimistic about Bitcoin moving higher in the future. However, it’s also bad because miners are willing to continue mining at a loss just to keep accumulating more Bitcoin and this makes the ROI in the short term very low for everyone.
Eventually, the market will adjust and either the price of Bitcoin will shoot up, or the difficulty will drop making large scale operations like ours more profitable. Either way, our main goal is to help you accumulate more Bitcoin than you started with and to accomplish this goal we have decided to make a change to boost the payouts and make mining more profitable for future members
We understand some members are not going to like this change, but we have talked with many leaders to figure out the best solution and they all agree this a good idea so we are moving forward with it.
Here is what we are going to do…
All members who purchased a mining pool share during the early days between September 14th 2014 through June 30th 2015 have made back a substantial return on their original Bitcoin mining purchases.
These members have accumulated a lot of partial shares (some even have full shares they have earned) and they are simply taking up too much of the pool. Plus, everyone in this time frame has received ClubCoin at a 1:1 ratio and all Founders have received an additional 2,000 – 7,000 ClubCoin as an added bonus. Not to mention all the Founder 1 and Founder 2’s have a lifetime share in our Founder pools that receive 1% and .5% of all the Bitcoin we mine.
So after much consideration we have decided to stop payments on all the FULL shares purchased during this time. You will continue to earn daily on all the partial shares that you have accumulated and no changes will be made to your account, we are simply ending your shares early starting on September 1st and you will no longer be paid commissions on these full shares.
Why are we doing this?
It’s simple… By eliminating these early shares it will boost the daily payout on a per share basis for everyone else. It will also allow us to go back to paying for 1,000 days on all the contracts instead of 600 days (this is big)
We believe that mining hardware has reached a peak in technology. The 14/16nm chips are the top of the mountain and while there could be one more jump to 10/12nm chips, the added efficiency gained is so small that it’s not worth it to produce. So we are loading up on hardware right now because we believe these newest models can run for many years and in the right environment, they can easily last 1,000 days!.
By retiring these older shares we are able to go back to 1,000 days on ALL mining shares and not just new shares, so if you purchased a share that was only good for 600 days you will see an extra 400 days added to your mining time. We believe this longer payout is more in line with the future of the mining industry and our goal to help you accumulate more Bitcoin over the next 3-5 years!
Just to put this move in perspective, if you purchased a share during this time frame (before June 30th 2015) your purchase would have either bought an S3/S4 Antiminer or possibly even some Script Mining equipment that we had running in the early days when mining ALT coins.
Either way ALL of this equipment has either been liquidated or the machines are dead so your original contribution to the pool is no longer contributing any power or value (only your partial shares continue to) and for all new members joining today they are purchasing equipment that is 20x more efficient but they are only earning half because of all the older shares, so the decision was made to help balance this out and help everyone!
If you have an issue with us ending your contract early please open a support ticket and we will address your concerns, but we hope you understand this is a very fair way to provide increased value and allow members to continue mining in profit for years to come!
Let's deconstruct that wall of text.....
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The Bitcoin mining industry continues to expand rapidly.....
This is both good and bad… It’s good because it shows the mining industry is really strong and very optimistic about Bitcoin moving higher in the future. However, it’s also bad because miners are willing to continue mining at a loss just to keep accumulating more Bitcoin and this makes the ROI in the short term very low for everyone.
This is both good and bad… It’s good because it shows the mining industry is really strong and very optimistic about Bitcoin moving higher in the future. However, it’s also bad because miners are willing to continue mining at a loss just to keep accumulating more Bitcoin and this makes the ROI in the short term very low for everyone.
This is a faulty analysis as a look at actual numbers will show.
The halving wasn't a surprise, nor was the pre halving pump and "sell the event" followup.
Are they really asking their punters to believe that the dominant Chinese operators are running at a loss? The only miners losing money at today's prices are
a) mining with obsolete equipment
b) trying to service top heavy debt/commitments out of reduced income e.g. expensive power, expensive miner leases or a big fat MLM matrix that sucks the life out any profitability for their small investors (see vids of Founders on yachts, buying Bentleys etc.)
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our main goal is to help you accumulate more Bitcoin than you started with and to accomplish this goal we have decided to make a change to boost the payouts and make mining more profitable for future members
Hmmm, another way of putting that would be "new investments have collapsed, quick, think!"
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All members who purchased a mining pool share during the early days between September 14th 2014 through June 30th 2015....are simply taking up too much of the pool.
Too much of the pool?....how about "Our early contracts are now getting dust like everyone else, so if we make a big deal about them being sacrificed for the common good, then we might be able to tempt in some newbies with a bit of ROI for a while. WE NEED SOME NEW MONEY ASAP. It's no real loss to
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Not to mention all the Founder 1 and Founder 2’s have a lifetime share in our Founder pools that receive 1% and .5% of all the Bitcoin we mine.
Yeah, it's not like we're gonna actually lose anything much, just keep skimming off the top for ever and ever and ever.
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It will also allow us to go back to paying for 1,000 days on all the contracts instead of 600 days (this is big)
Go back to? Errrr no. BCN have never paid anyone for 1,000 days.
They promised to, then they changed that to 600 days when it became clear that 1,000 was giving too much away to the wrong people (genuine investors). In MMM, this would be called a "reset".
If you bought in on say June 1st 2015, one of
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the privileged few who have pool shares that earn for 1000 days.
then BitClub Network promised (nothing in writing, of course) to pay you till 25th February 2018.Quote from: http://bitclub.com/wow-incredible-year-recap/
these shares will ALWAYS earn for 1,000 days
(their capslock)In that example, you have been shafted for over half your "contract", 542 days stolen.
If you bought in just because you bought their spiel, fancied cloudmining some coin and didn't 'earn' any MLM commission (from ya grandma, neighbours etc.) and were less than Founder level, you are fucked.
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if you purchased a share that was only good for 600 days you will see an extra 400 days added to your mining time.
600 day shares have only been going 244 days, earning dust ROI. Maybe someone who's locked in will think "Well, 400 extra days of dust is better than no dust at all. Not like I've got any choice...."
N.B.
Ya must remember not to keep using the word "shares". It sounds a lot like an investment contract to me. According to Weeks, you don't sell them, only mining equipment.
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ALL of this equipment has either been liquidated or the machines are dead so your original contribution to the pool is no longer contributing any power or value
But what happened to compulsory reinvestment?
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A percentage of all Bitcoin mined will be used to pay for mining costs and to purchase new mining equipment.
So, you've been compulsorily deducted up to 50% to pay for upgrades, but "the machines are dead". Wot?
Quote from: BCN News, 3 months ago
If you are looking to take possession of your machines and buyout then we have an amazing deal on the S5 Antminers right now (especially in the US market). If you are in the United States we will double your hashing power and send you twice as many PSU’s to mine with on your own.
This means whatever your quote is for your hashing power you will receive double with free shipping. If you can find a special deal or free power somewhere then you can hash these machines for a long time and we can even show you how to point them to our pool if you wish.
Looking at a pure ROI this could mean big returns and since we will be selling off this equipment fully by September we would much rather give them to our members at a special deal. This may be the best time ever to get yourself into mining, right before the halving and before a major shift in chip technology.
This means whatever your quote is for your hashing power you will receive double with free shipping. If you can find a special deal or free power somewhere then you can hash these machines for a long time and we can even show you how to point them to our pool if you wish.
Looking at a pure ROI this could mean big returns and since we will be selling off this equipment fully by September we would much rather give them to our members at a special deal. This may be the best time ever to get yourself into mining, right before the halving and before a major shift in chip technology.
Lol, 10/10 for disingenuous.
Whatever happened to
Quote from: Weeks, 6 months ago
I've got the new (Bitfury) 16nm tech chips. BCN are the only people in the world with Bitfury chips, buying all they can produce.
? Or his legendary hardware trading deals, where he
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pays Bitmain $100 for an S7
?Quote
If you have an issue with us ending your contract early please open a support ticket and we will address your concerns, but...
...fuck off.
Back to the Ponzi definition:
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a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.
That's what this is all about. New money. No-one already in is going to add more with virtually infinite ROI and no-one new new is going to touch it, (if they have the wits to ask for recent mining payment history proof).
The core "Founders" don't give a shit about mining income, the MLM residual is all they've ever been interested in.
Early genuine investors have just had a massive haircut. More like a decapitation, and there's nothing they can do about it.
