FAQ

BitClub Network is one of the largest Bitcoin mining operations in the world and the largest member owned Bitcoin mining operation in existence today . This is verifiable on the blockchains, including the entire mining history of the company and the current real time day-to-day mining. Mining is the root of Bitcoin and other cryptocurrencies. To be born, cryptocurrency has to be mined out of the blockchain. Mining is the smart way to acquire cryptocurrency, because after your equipment is paid, your currency is free. This puts you in the highest leverage position. This document addressees the concerns that people have when looking into this business. We have covered a lot of ground here for both beginners and professionals.

We also disclose and disclaim that this is not legal or financial, tax or business advice. We highly recommend that you consult with professional counselors in these specific areas before making this or any other business decisions.

Q – How Do I Join BitClub Network?

A: To sign up you will need pay a one time $99 USD membership fee that will give you lifetime access to our platform and allow you to participate in our mining pool shares and any other opportunity we provide in the future. You must pay this first to activate your account before purchasing any other products.

Q – Can BitClub Network Verify Mining?

A: YES! We have a public mining pool where you can track our hashing power in real time – www.BitClubPool.com

As our membership base grows bigger, so does our mining pool and you will see more hashing power being added to our pool website, which you can track in real time. Having more hashing power allows us to hit more blocks on a daily/weekly basis. You can also verify our pool with the following third party resources.

View BitClub Pool on the BlockChain – Click Here
BlockTrail keeps more detailed records – Click Here

 

Q – How Does BitClub’s Mining Pool Work?

A: If you are not familiar with bitcoin mining here is a very basic overview… Every 10 minutes a new block of 12.5 Bitcoin is found by someone in the network who is hashing. In order to find a block you must attempt to solve a simple math problem using a cryptographic hashing function. The more hashing power you have the higher the probability is to guess the correct answer and solve the problem. When the total shares in the round are equal to the difficulty it means a block should hit (in theory).

Q – How Are Mining Earnings Paid?

A: We pay mining earnings everyday! However, because of the variance described above we pay out earnings based on the average of the previous 10 days and then adjust it accordingly for the next 10 days. When you first purchase a share of any pool you will not start earning bitcoin for 30 days. This is how we stabilize the payout and it also allows us a nice window to purchase and install new equipment. After these initial 30 days you begin earning bitcoin daily for 1,000 days.

Maintenance Fees & Repurchases: Each day you will earn a percentage of bitcoin mined that will be instantly available for you to withdrawal, you also see another percentage automatically held to cover electricity, maintenance, hosting, and for purchasing new mining equipment. There is a minimum percentage for each pool and these holdover amounts are redeemed in the form of additional shares when they reach a set threshold. Each pool will automatically re-purchase a partial share when it reaches 2.5% of the total share cost of that pool. You will see your total shares increase for 1,000 days as you pay back a percentage every few days.

 

Q – Who Owns BitClub Network?

A: BitClub Network is not owned in a traditional structure, it’s run by a group of programmers, bitcoin mining experts, and investors who have come together with Network Marketing leaders to offer a simple referral based mining pool that everyone owns! You could say we have created a decentralized corporate structure that has no single point of failure. Everyone knows their role and we really do have an incredible team assembled here. However, we prefer to let the technology and our business model do all the talking and we like to think EVERYONE who owns a share of our pools owns a piece of BitClub Network too!

 

Q – Where is BitClub Network located?

A: Everywhere and nowhere! BitClub operates from all over the world, and this structure is intentional so there is no single point of failure or compliance issue that will hold us back or get us shut down. We have multiple mining locations across Europe and mining facilities in Iceland (that you can take a tour of). Our main hosting servers and mining pool servers are located in the Netherlands with redundancies in Hong Kong and Switzerland. Our programmers work remotely, our support staff works from their homes and we do not have a need for a physical location. We can fully operate this company virtually and thanks to BlockChain technology and other decentralized and distributed networks we also don’t need a traditional corporate structure. This limits our overhead and allows us to pass these profits to our members.

 

Q – Is BitClub a Ponzi Scheme?

A: NO! We are actually mining and this can easily be verified! A ponzi scheme has no product, it’s just a money game set up to pay people with other people’s money and eventually it will crash and burn. Unfortunately, there are a lot of ponzi cloud mining companies or just flat out scams taking advantage of this “mining front” but BitClub Network has a REAL opportunity for anyone to purchase mining equipment and earn profits from what is being mined. We don’t guarantee any ROI we just share what is actually being mined. We strive to be very transparent about our mining and you are able to track everything on the blockchain and see our Mining pool running live. This is what we love most about Bitcoin… You can’t trick or fake it, everything is recorded in a public ledger for everyone to see.

 

Q – Does BitClub Network Guarantee a Return on Investment (ROI)?

A: NO! Very important to understand that we DO NOT guarantee a mining share will have a set return. In fact, you will never hear us make any claims about how much you will earn from having a share in our mining pool because the truth is we don’t know. Bitcoin mining is very complex and with the difficulty level constantly moving up every 10 days and new hashing power always entering the space there is no way anyone can predict accurately an ROI. Especially with our business model that requires re-purchases or more simply daily maintenance fees.

NOTE: If you find a company offering you a set return (especially if they claim to be Cloud Mining and offer 100% or more) there is a high probability they are a Ponzi scheme. Some Cloud Miners are actually backed by real hardware but their power is virtual and therefore very hard to track. In fact, the sad reality is you will never know if a could mining company is actually mining, so we recommend you steer clear unless they are very transparent. We are NOT a Cloud Mining company, everything we have can be verified!

 

Q – What is Bitcoin Mining Equipment?

A: Mining equipment is the term used for specialized computer hardware that has been customized to run hashing functions. These machines can be strung together and plugged into the Bitcoin Network. The mining equipment is basically an ASIC chip that is designed to handle hashing functions. The rest of the “equipment” is used to cool the chip and provide power to it.

We are constantly buying new equipment to leverage our purchasing power on behalf of all BitClub Members. Most of the miners we purchase are from Bitmain (which is the #1 seller of mining gear worldwide). We have built a relationship with them that allows us to get preferred pricing and deploy racks of new servers. In addition, we are able to liquidate some of the older mining equipment with Bitmain through their secondary market and this allows us to maximize profits.

Anytime we sell off older equipment, we give our members a chance to buyout of their mining contracts and take possession of the equipment they purchased. This is based on the total hashing power and value of the existing shares. You can chose to take possession of your miners and cancel your contract at anytime. NOTE… This is not a refund, you are simply giving up your future earnings to take possession of this equipment so you can mine for yourself or re-sell it. You must contact us individually to get a quote for this.

 

Q – If BitClub is already successful mining Bitcoin then why share profits?

A: Because of how mining actually works it is always getting harder for smaller mines to make profits. This is actually why mining pools were created in the first place. In the early days anyone could mine with their home computer and hit a block. Now, even if you have millions worth of equipment you still might be too small to solo mine and be profitable, so the entire industry has quickly turned to mining in pools and sharing profits. In order to be profitable today you need to have massive purchasing power and this is where you come in! With our business model instead of rasing millions of dollars from a VC firm or private investor we are allowing members to pool their money together and make large purchases. This means bigger discounts on hardware, less electricity costs and a much more efficient mining operation.

Plus, we have a very strategic way that members can pay for the daily electricity, maintenance, and other costs that come with running a large scale mining operation like this. This is where our real power and profits come in! By taking a percentage of all the Bitcoin mined and putting it toward a re-purchase we have basically created an automatic “autoship” that members NEVER have to pay out of their pocket. And for chipping in daily you are rewarded with a larger share of the pool. With a structure like this everyone wins! And this is why we believe we can become one of the largest pools in the world!

 

Q – What is the Life of a Mining Pool Share?

A: When a mining pool share is purchased it will not start earning right away. It will start with a 10 day holding period for confirmation and placement. After the 10 day holding period the share will begin earning daily, depending on what is mined by BitClub Network. The life of a share is 1,000 days and after the 1,000 days are passed the share will get automatically removed.