Quote
After announcing we would be leaving the United States market at the end of the month we had a lot of questions come pouring in so we wanted to provide a few more details and answer some of the most common questions we received.
First of all, we want to be very clear that if you are a member of BitClub Network on or before April 30th, 2016 and you are located in the United States this will have NO AFFECT on your membership.
All mining shares and equipment you have purchased will continue to run until expired, you will be able to purchase additional shares, and you can even participate in future product and services that we offer.
This decision will not affect you!
It is only intended to stop future members from joining until we can figure out if our business model will be a fit for the US market. The fact is the cost to do business in the United States significantly outweighs the benefits of being in the market and if we do nothing it could jeopardize everything so we are pulling out now!
First of all, we want to be very clear that if you are a member of BitClub Network on or before April 30th, 2016 and you are located in the United States this will have NO AFFECT on your membership.
All mining shares and equipment you have purchased will continue to run until expired, you will be able to purchase additional shares, and you can even participate in future product and services that we offer.
This decision will not affect you!
It is only intended to stop future members from joining until we can figure out if our business model will be a fit for the US market. The fact is the cost to do business in the United States significantly outweighs the benefits of being in the market and if we do nothing it could jeopardize everything so we are pulling out now!
The bolded part makes no sense. How is there any difference whatsoever in the cost of servicing a US based contract and a non US based one? Lawyers?
The italicized bit, even less so. They are either running a profitable mining operation or not.
Quote
#2 Can US Members Purchase A Pool in the Future?
A: YES!
As long as you have an active $99 Membership on or before April 30th, 2016 you will be eligible to purchase all mining pool shares in the future at anytime. Your account will not be limited in anyway.
You may be subject to some additional verification in the future but not right now!
A: YES!
As long as you have an active $99 Membership on or before April 30th, 2016 you will be eligible to purchase all mining pool shares in the future at anytime. Your account will not be limited in anyway.
You may be subject to some additional verification in the future but not right now!
This confirms for me that their withdrawal from the US is down to some sort of regulatory intervention. Maybe along the lines of "Stop taking new punters until we decide what to do about you."
Quote
Right now we are running a special deal for all US members where we will ship the mining equipment to you FREE anywhere in the US. We will even even help you set it up if you want to learn how to mine on your own. All you have to do is fill out a support ticket and request a quote for taking possession of your equipment.
We will provide you with a custom quote based on your specific account and the amount of machines you will receive depends on many factors like when you purchased, how long you have been mining, where you are located, and some other factors specific to your account.
NOTE: Right now is a good time if you are thinking about doing this! The value of the machines we will ship you are in high demand and there is a lot of competition right now because of the halving that is coming up in July. You may be able to sell these machines on your own (amazon, ebay, etc) for a nice profit. They are your machines, you own them so if you want them just ask!
We will provide you with a custom quote based on your specific account and the amount of machines you will receive depends on many factors like when you purchased, how long you have been mining, where you are located, and some other factors specific to your account.
NOTE: Right now is a good time if you are thinking about doing this! The value of the machines we will ship you are in high demand and there is a lot of competition right now because of the halving that is coming up in July. You may be able to sell these machines on your own (amazon, ebay, etc) for a nice profit. They are your machines, you own them so if you want them just ask!
This is to reinforce the idea that they are selling hardware and hosting it, not unregistered securities.
Virtually none of the 'investors' that I have looked at show any signs of being interested in anything but BCN's great MLM selling point, "passive" income. Setting up a piece of unspecified ASIC in your basement does not qualify as passive. That would be like asking the Avon Lady to start making lipstick in her bath.
Quote
Bitcoin Mining Pool Stats...
Over the past 30 days we have mined 149 Blocks, which is equal to 3,725 Bitcoin. Using today's price of $425/Bitcoin that is equal to $1,583,125 USD. Our total electricity and costs last month was just under $400,000 (including management and labor). This has created over 1 million in new Bitcoin for BitClub members in the last 30 days alone!
Over the past 30 days we have mined 149 Blocks, which is equal to 3,725 Bitcoin. Using today's price of $425/Bitcoin that is equal to $1,583,125 USD. Our total electricity and costs last month was just under $400,000 (including management and labor). This has created over 1 million in new Bitcoin for BitClub members in the last 30 days alone!
The stats of BitClubPool rougly confirm the mining figures but, according to references, about 20 of those blocks were mined by third party miners because zero fees (and, in the past, block finding bounty), so no benefit to BCN members from those. That's only ~$200,000 difference, chump change.
What is unconfirmed is
1) any blockchain connection between newly mined BCP coins and BCN payments.
2) any proof of an overhead structure <$40/kW.
Fwiw, Genesis commented a while back on the cost of running an Iceland based mining operation. Allowing for change in difficulty, the figure Streng quoted then of ~$188 cost per bitcoin mined is now in the region of $250 per coin. BCN's figures imply their total costs are ~$105 per coin mined, which is less than Genesis' overhead without electricity...
Quote
Right now our mining pools are operating in a very efficient manner that allows us to fulfill all current obligations to members without a single new member joining or purchasing a share of our pool. We can continue to expand and be profitable just based on our repurchase model (which is amazing!!)
"We are not a Ponzi".
So, all mining income is disbursed between mining contracts and referral pimps. The "amazing" bit is that statement, the implication that not only can they pay very impressive roi and huge matrix commissions, they can also make a re-investable profit by selling old ASICs and buying new. This is presumably linked to Weeks' statement that Yoshi (Bitmain) sells S7's to BCN for "$100".
Quote
**BIG UPDATES COMING UP NEXT**
Look forward to them....