BitClub Network Review – Legit Or Scam?

BitClub Network ReviewHas someone approached you lately about joining BitClub Network?

This doesn’t surprise me – it’s been getting a lot of hype in the last couple of week, with people pitching it all the time.

First, let me make one thing clear – I am NOT in any way affiliated with BitClub Network.

I simply wanted to gather all the details here for you in my BitClub Network Review so you can make an informed decision.

Is BitClub Network truly a scam?

Have you heard some of the negative reviews about BitClub Network?

Read on to find out in my Review of BitClub Network.

Let’s get going!

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BitClub Network showing signs of faltering?

When it initially launched, BitClub Network encouraged affiliates to join its MLM model in return for an ROI over 1000 days. The company had not been transparent in the first place about who owned or was running the scheme; and when these mysterious managers came to the realization that the newly invested funds were insufficient to honor the promised ROI’s, they decided to reduce the maturity period from a thousand days to six hundred.

They were hoping that, when this six hundred day term had run its course, affiliates would re-invest: something that would continue the flow of income and give the BitClub network a better chance of continuing payments. This plan has seemingly already failed, and the new policy that they themselves admit that ‘members are not going to like’ means that any affiliates who invested into the scheme between the 14th September 2014 and 30th June 2015 will receive no further ROI. This accounts for all of the early investor contracts.

Their explanation for doing this, is that the investors affected had already ‘made back a substantial return’, with those contracts already having run between 425 and 714 days. They stated that,

‘By eliminating these early shares it will boost the daily payout on a per share basis for everyone else’. They go on to explain that the ROI will return to being based over a 1000-day term.

The hidden truth behind the recent changes is that BitClub’s Network is clearly not working in the way that they have led everyone to believe. If it were, there would have been no need to make these tricky decisions and finding themselves in a place where they hope that the people who have managed to benefit from the scheme will rush back to invest again (a ploy that sounds worryingly cyclical). The investment raised from affiliates is supposedly being used towards necessary hardware upgrades and bitcoin mining- all of which goes back to paying ROI’s to the investors. The scheme quite clearly has funded the payments of ROI’s using subsequent investors’ investments, however, as the rates of return are far beyond what can be reasonably obtained through the act of Bitcoin mining alone.

BitClub Network scam

This fact means that the overall pot is continually depleting, which leaves newly recruited affiliates in a precarious position. The only solution to this would be to cancel the earlier positions that have made their money back, and pray that enough new investment can be brought in to fulfill the remaining requirements (which, with a 1000 day maturity, may be slightly easier to do). All Ponzi schemes reach this dilemma, because by definition the numbers don’t add up in the end and there will inevitably be a collapse at some point. Usually this happens after a period of two years- an anniversary that the BitClub Network happens to be about to celebrate. Their BitCoin mining endeavors have never accounted fully for the payouts, and likely will never be able to. The company says that they hope that ‘eventually the market will adjust and either the price of Bitcoin will shoot up, or the difficulty will drop making the large scale operations like ours more profitable’.

It is tantamount to the company admitting their current setup is not working and, unless the market conditions undergo a significant change, things will not end well. This is the main motivation behind extending the maturity to 1000 days, because that gives more time to allow the above hopes for the industry to manifest. It is a case of clutching at straws, though, and is more likely to completely collapse soon than turn around its fortunes. The affiliates will soon realize that the pre-mined ClubCoin are worthless, and new investments will dry up completely.

The company hasn’t quite given up yet, though, because those signed up affiliates that still trust the operation are being given another opportunity to invest in the scheme (in a blatant attempt at increasing the funds available to pay off their obligations.) BitClub Network has opened five ‘trading pools’ in which affiliates can invest between $500 and $25,000 in return for an ROI over 18 months.

“Each day you will decide if you want to trade for the day, all you need to do is login and click a simple button that says “Yes, Trade My Bitcoin Today”. After 18 months in the pool you will begin to receive a portion of your initial Bitcoin back that will begin to be paid back monthly over the next 10 months. Just like our mining pools we have forced re-purchases on all monthly profits.”

If you weren’t suspicious of this offer already, the quotes in the small print say it all,

‘We want to make it very clear that you could end up losing your principal and there could be negative profits allocated against your account in any given month’.

It’s almost as if they know it’s going to fail already. Sadly, for any investor still involved with BitClub Network, it seems that early mismanagement in the fund combined with a sketchy setup in the first place means that this scheme has not got long left in it, and anyone who hasn’t already made back their money is looking increasingly unlikely to be able to do so.

Take this as a warning- when an MLM is not being transparent about the company from the start (including information about who owns and runs the business) you are getting involved with something that, should anything go wrong, there will be no course for recompense. There are many MLM propositions available out there- careful research is paramount in deducing which ones are legitimate propositions and which are like BitClub Network and on a course to failure.

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