BitClub Network Scam? Yes It Is In My Opinion!
The BitClub Network is blocked from access for U.S. investors, but some promoters are still pushing it. Here is one example of how they get around the BitClub block in the U.S.:
If you think this is right for you there is one other hurdle you must cross if you live in the USA. As of today if you live in the USA you have to change your IP address to another country to be able to invest in Bitclub. This is very easy with your browser for FREE. The reason for this is to do with how the governments and regulation and the unknown how this will affect the company so by changing your IP address it reduces the risk on the company Bitcoin. If this affects your decision that is OK we have many other ways to create multiple streams of income.
My subscribers have been requesting that I take a look into the BitClub Network. Here is what I have found.
BitClub Network Scam Claims
BitClub Network has created one of the largest Bitcoin and Blockchain membership platforms in the world. Our members receive education, training, and access to exclusive opportunities within the Digital Currency industry. We started mining back in September 2014 and since our launch we’ve built one of the largest mining pools in the world for Bitcoin, Bitcoin Cash, Ethereum, Zcash, Monero, and more.
When you purchase a share of these mining pools you are actually purchasing bitcoin mining machines that are being leased to you over a 1000 day period. These machines have been assembled for the sole purpose of mining Bitcoin blocks and we will continue to purchase the latest technology as it becomes available.
Here is a video example of how BitClub Network is promoted:
BitClub Network Scam Reality
BitClub Network was founded in 2014. They do not list the founders of this company on their website. They provide a vague statement about who is running this company. This is done so it is difficult for you to look into the history of the people behind the company.
BitClub is not owned by any one person, we are a team of experts, entrepreneurs, professionals, network marketers, and programming geeks who have all come to together to launch a very simple business around a very complex industry. – Source bitclubnetwork.com
I was able to find the following co-founders of BitClub Network:
Co-Founder Russ Medlin
Co-Founder Joe Abel
Co-Founder Joby Weeks
These founders have a long history in promoting MLM schemes. In my opinion, these are not bitcoin experts. They are expert recruiters.
No address is provided for where this company is located.
I was not able to find any information on cryptocurrency experts involved in the running of BitClub Network.
Here is a video of Russ and Joe talking about BitClub Network mining equipment:
I have seen similar videos made by the USI-Tech scam. The proof of the legitimacy of this company is almost identical to USI-Tech. They show equipment that is in Iceland and then they provide a link to a pool of crypto mining that has their name on it. What they don’t provide is a profit and loss statement that shows they are actually making enough money from mining to pay all of the people that are investing in the mining.
They claim that you are buying equipment with your shares, but they do not provide information on what actual equipment you are buying at the time of purchase.
As a member of BitClub you actually own a piece of the mining hardware being purchased and depending on the amount of shares you own and the country you live-in, you can actually request to take possession of your equipment. – Source bitclubnetwork.com
One of the claims that is made about the BitClub Network on a fact sheet is that they have an exclusive relationship with Genesis Mining:
BitClub Network owns $100,000,000 in mining equipment and invests approximately $30 million/month in new equipment to grow its data centers. BitClub purchases its equipment through mining equipment companies, Bitmain (85%) and BitFury (15%). They also have a close relationship with Antpool of China which now also sells equipment to BitClub as they need it. BitClub also has an exclusive relationship with Genesis mining. Genesis now works exclusively for BitClub in assembling data centers. BitClub also partners in electricity purchases with Genesis. Genesis and BitClub facilities are located next to one another in Iceland. The data centers are located in Iceland which is the perfect country to produce renewable energy completely independent from oil, thorough hydro, geothermal and solar sources. The company has videos of its data centers and the frequent tours it offers to its members. BitClub allows members to pool their money together and make large purchases. This means bigger discounts on hardware, fewer electricity costs, and a much more efficient mining operation.
If you search the Genesis Mining website, there is no mention of BitClub Network. That is a bit strange for an exclusive partnership.
Joe Abel in a video claims that BitClub Network has spent hundreds of millions of dollars on equipment and they use advanced specialized equipment.
Here are two BitClub Network members experience:
Well, I joined Bitclub Network in January 2016, an I invested a total of 3599 into my 1000 days mining shares. At the time, 1 BTC was worth around 320 USD. Since you have to make your investment in BTC,I bought around 11 Bitcoins to pay for my shares. Keeping in mind, that 1 BTC is today worth around 4000 USD, my 11 BTC would be worth by now 44000 USD ! So far until today – including Sponsoring a handful other – i got only 2.7 BTC in mining and commission back. And i can proof it! On top of that, i have made my Sponsor angry. And he is a big player in this Bitclub Network System. His name is Joerg D. Wittke, a very well known German Marketer and so called Mega Monster Builder, operating out of Dubai, luring more and more people into the Bitclub. In some of his Videos he is claiming to be a friend of Russ, the founder of Bitclub Network. I will attest that in every court of law if needed!!! Btw, if you do a little research on Joerg D. Wittke and his Wife Andrea, you will see that we are talking about a real major player in Bitclub Network, operating multiple sites around Bitclub Network including the so called Centurion Club with the Bitclub Network. I have Names, and phone Numbers of his dozens “Lieutenant” all over the world, starting right after him. My best advise: Bitclub Network will collapse sooner, not later. Stay away! The math will do the trick. that commission paid into so many lines below you, plus the real mining cost involved they do…it just doesn’t add up without the money of new members paying for it. Don’t be foolish! Yes, I believe in bitcoins. Its a great investment. Buy yourself some, keep them, and wait. But dont invest in Bitclub Network. My 10 Cents after 21 month of mining was a member of Bitclub Network! – Source 99bitcoins.com
Bitclub Network profits materialize excruciatingly slow (unless you recruit others MLM-style). Basic retail recruits like me “invest” dollars, and they dribble pennies back at you over an incredibly long period of time. Here’s my story: In June 2017, I invested the basic $603 — i.e., $99 plus the basic mining package — in the form of 0.24 Bitcoin (the price of BTC was $2,470.10 at the time). After more than 200 days, so far I’ve pulled back 0.023 Bitcoin. In other words, the rate of payback is about 9.6% of my investment after about 7 months. At this rate it will take about 2,062 days, or 5.6 more years, to recoup my investment. Hope this helps someone. – Source bitcointalk.org
It is my opinion that BitClub Network uses low paying mining packages to get people to recruit for them. Once recruiting slows or stops it will collapse and stop paying. The big money in BitClub Network is in recruiting new investors and not in mining.
I have seen MLM scam promoters rent islands to impress people to recruit others. I believe the mining hardware claims by Bitclub Network are used in the same way.
They like to build up how they are using all of this specialized mining hardware from Bitmain , BitFury, and Antpool. When you take a look at the video for their Iceland location #2 you see stacks and stacks of ASROCK hardware: typical PC hardware and not specialized mining hardware.
BitClub Network always use state-of-the-art mining hardware and currently use the BitMain AntMiner S9 in their mining operation. The special thing about BitClub Network is that they do not wait for mining equipment to become outdated or obsolete. When a new, faster and more efficient model is released to the market, the current “older” hardware is quickly sold off on the second hand market while they still fetch a good price. – Source coinpurveyor.com
Here is the reason why BitClub Network claims they block U.S. investors:
We looked into trying to comply in the United States and the more we tried the harder and more expensive it was. For this reason we have blocked all sign ups in the United States and any other countries controlled by the United States. (Guam, Puerto Rico, etc). If you are a US citizen please do not join.
Yet, promoters are still trying to get people from the U.S. to join. Don’t listen to these promoters.
$99 USD membership fee
Bitcoin Pool #1 $500
Bitcoin Pool #2 $1,000
Bitcoin Pool #3 $2,000
GPU Mining Pool for either $1,000 USD or $5,000 USD worth of Bitcoin.
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.
They offer no products for you to sell.
Bitcoin Pool #1 — Each share cost $500 worth of Bitcoin and will pay daily. All shares pay you 50% of whatever is mined and then takes the other 50% to pay for expenses and additional mining shares.
Bitcoin Pool #2 — Same as Pool #1 except for each share cost $1,000 worth of Bitcoin and pays you 60% of whatever is mined and takes the other 40% to pay for expenses and additional mining shares.
Bitcoin Pool #3 — Same as Pool #1 except for each share cost $2,000 worth of Bitcoin and pays you 70% of whatever is mined and takes the other 30% to pay for expenses and additional mining shares.
These shares are valid for 2,000 days and will begin paying 30 days after purchase
Binary Team Cycle Bonus
When you sign up for $99 worth of Bitcoin you will receive a position in the binary tree structure. This position will not be activated until you purchase a minimum of 1 share in any of our mining pools.
You can begin enrolling new members once you are activated and everyone you introduce to BitClub Network will either be placed on your LEFT TEAM or RIGHT TEAM.
To qualify all you need to do is place one personally sponsored person on your left and one on your right and you are eligible for binary commissions.
For every $500 full share sold in your binary tree you will receive 3 Credits
For every $1,000 full share sold you will receive 6 Credits
For every $2,000 full share sold you will receive 12 Credits
15 Credits Left + 15 Credits Right = 1 CYCLE
1 CYCLE = $200 worth of Bitcoin
All sales including spillover down your left and right legs will count towards your total binary volume.
Binary Matching Bonus
For each $200 cycle paid there is another $80 paid to the upline through a maximum of 8 levels. You do not need to qualify for the first Level because all members automatically begin at the rank of Miner.
To earn on level 2 matches you must qualify at the rank of Builder, To earn on level 3 matches you must qualify at the rank of Pro Builder, and finally to earn on level 4 matches you must be qualified as a Master Builder or Monster Builder.
*You must qualify for these matching bonuses, however, there is no breakage to the company because we use dynamic compression when looking for the next rank in the upline. This means if your sponsor does not qualify it will look upline to their sponsor and so on until it finds 4 people to pay a the qualified ranks.
|Match Level||Payout USD||Rank To Earn|
|Level 5||$10,00||Pro Builder|
|Level 6||$10,00||Pro Builder|
|Level 7||$10,00||Master Builder|
|Level 8||$10,00||Master Builder|
|Rank||Sponsor||Total Volume||Duration||Qualification Details|
|Miner||0||—||Lifetime||Active Member with $99 membership + 1 share of any mining pool|
|Builder||5||$10,000||Lifetime||Sponsor 5 Miners that each have sponsored 2 Miners. AND have $10,000 in total enrollment tree volume.|
|Monthly||You need a total of 3 Builders under your enrollment tree with each coming from a separate leg. AND you need a total of $50,000 in total enrollment tree volume.|
|Monthly||You need a total of 2 Pro Builders in your enrollment tree with each coming from a separate leg. AND you need $250,000 in total enrollment tree volume.|
|Monthly||You need a total of 3 Master Builders in your enrollment tree with each coming from a separate leg. AND you need $2,000,000 in total enrollment tree volume.|
For a breakdown of the compensation plan click here.
They provide no income disclosure.
They have a very strict NO REFUND policy. In most cases you cannot get a refund for any reason unless there is a clear mistake or very good reason for it. Also, this refund request must happen within the first 72 hours of payment or before 3 full pay cycles are paid out. If a refund request is made after this time they will not honor it.
BitClub Network Scam Conclusion
In my opinion, BitClub Network is another recruiting scam that uses low paying mining packages to get people to recruit for them. They provide a vague statement about who is running this company on their website. This is done so it is difficult for you to look into the history of the people behind this company. They provide no address for where the company is located at. The founders of this scam have a long history with other MLM schemes. None of the founders I was able to find are cryptocurrency experts. The BitClub Network is blocked from access for U.S. investors, but promoters are still pushing it here. Their compensation plan offers 8 levels or more for commissions. The excessive levels in their downline make it an exploitative money transfer scheme. I would avoid the BitClub Network crypto mining recruiting scam.