Ryan Selkis of CoinDesk and Digital Currency Group asks 5 big questions of bitcoin for 2016.
For those of you who are sitting on the fence about Bitclub – read this to get your biggest reason to join and buy Mining Pool Shares.
WOW What An Incredible Year… Recap!
Date: December 31st
2015 was a big year for BitClub Network!
We established ourselves as one of the top mining pools in the world and have laid a solid foundation that will continue to be profitable for years to come. Our main pool which was launched in July of this year has already mined 200 Blocks so far and we earned an additional 2,800 Bitcoin by contributing power to other pools during the year.
In total that’s around 7,800 Bitcoin valued at over $3,354,000 USD which was all paid out to BitClub Network Members.
We never expected to mine this much Bitcoin in 2015 but what’s even more exciting is our pool is just getting started. We are currently sitting at 7 PH with another 4 PH being plugged in over the next week and we believe 2016 is going to be a huge breakout year for us.
We also continue to reduce our costs and become more efficient as we grow and since we are constantly purchasing the newest hardware and rolling over the older hardware we are projecting much larger margins this year (even with the rising difficulty and growing hash power of the network).
At the rate our membership is growing we should see around 3-4 new PH being plugged in per month and this could end up being more as we start to gain traction in markets like China, India and Korea. In fact, we will most likely be closing our pool to the public sometime in the next few months because we don’t need anyone to help supplement our power anymore.
Right now as it stands BitClub Members are 98-99% of the pool anyway so it doesn’t make sense to keep it open and share the mining profits with anyone else, even if it’s only 1-2%.
Mining Shares Moving from 1,000 days down to 600 days
One thing we are keeping a close on eye on is the rising difficulty rate and the overall hashing power of the Bitcoin network. We don’t think anyone predicted the difficulty would jump as high as it did this year starting around 40 Billion in January and shooting up over 103 Billion as of today.
This has put a lot of miners out of business this year and is quickly becoming a problem for anyone on the fence with less than 1% of the network power. Even more surprising over the last 3 months alone the difficulty rate has jumped nearly 50% and it looks to continue higher as large corporations and financial institutions are now jumping into the mix and spending millions to mine!
Because of this trend we are going to be adjusting the amount of days that each share will earn starting January 15th!
Originally we were going to do this tomorrow on the 1st of the year but we are going to wait for the new compensation plan enhancements to go live before making this adjustment. This gives you about two weeks before the shares drop from 1,000 to 600 days.
IMPORTANT!! We want to make it very clear that each share purchased prior to January 15th and ALL PARTIAL shares that are earned from these shares will ALWAYS earn for 1,000 days.
This means all members who own shares right now will not be affected at all by this. All of your partial share repurchases will be good for 1,000 days (forever) as you are grand fathered into the 1,000 days and no change will be made on your mining contract.
In other words, this has no effect on you or your earning potential it only applies to new shares that are purchased after January 15th and all partial shares that come from these shares will be good for 600 days.
Why are we doing this?
Based on our numbers and the growth of the industry we feel it’s necessary to make this change now so that in a few years from now the mining shares will still be valuable and not become too diluted.
This 600 day time frame is also more in line with the turnover of our mining equipment. If you were to buy the latest mining equipment today you would have about 1 year or possibly 18 months to earn profit from it. With our model we can extend this by liquidating older machines and rolling into newer models but we think 600 days is about the max before its just too diluted for future shares.
Originally when we set the shares at 1,000 days it was based on the profitability of the equipment at the time (September 2014). Now this is a lot more accurate with today’s market and we believe it will benefit everyone in the long run. Also, just to let you know this number could be adjusted again during the year or next year based on what we see happening in the market.
We will always give you plenty of time before making a change like this and again it will NOT affect any current mining shares purchased only the future shares purchased after a change is made!
ClubCoin is already taking off!
We are excited with the initial launch of ClubCoin and if you’ve been watching it on Bittrex you would see it has been holding steady around $0.15 – $0.20 since it went live. At one point we saw it jump up to $1.00, which was really exciting to see but we know it’s just the very beginning for this coin and we will see a lot of fluctuation as we grow the ecosystem for it.
We are approaching our giveaway limit and you will see an adjustment happen as we scale back the coin to slow down the distribution of all 50 million coins being allocated to BitClub Members.
In fact, we actually reached the first limit of our giveaway last week. This promotion was paying 1 ClubCoin for every $1.00 USD spent. Normally this would switch automatically however we always like to give you enough time to take advantage of our promotions and provide enough warning so you are not surprised by anything.
For this reason we are extending the giveaway by another 2 million coins or through the end of January whichever one comes first.
This means starting Feb 1st (or possibly sooner) the next promotion will kick in dropping the giveaway to 1 ClubCoin for every $5.00 USD spent. The Founder bonus of 1,500 will stay the same for the time being but just like all the other Founder promotions this will soon expire!
Please take note of these changes and make sure your team is aware of them too, we will make the switch quickly when this happens!
New Compensation Plan…
As you know we’ve been working on rolling out some compensation plan enhancements that will pay more through the binary and we are almost done with the changes. We are pushing to go live on January 15th. These changes will not affect any mining earnings and partial share payments will stay exactly the same through the level up.
The only real change is that we are taking some of the percentage out of the level up for new share purchases and putting more credits into the binary allowing you to earn more. This will benefit more people as the binary pays through infinite levels and we are excited about this change because it will make a big impact when it goes live.
The credits for each share purchased after January 15th will double and the cycle will stay at 5 credits left and 5 credits right but it will pay $200 instead of $75 with a maximum of 8 cycles per day!
Pool 1 = 2 Credits
Pool 2 = 4 Credits
Pool 3 = 8 Credits
We will post full details on the new compensation plan page that will include the level up and matching bonus structures as we get closer to launch.
Some Holiday Delays…
We want to thank you for your patience during this past week. Our team has been taking time off in shifts but we always have someone working and paying attention to issues. As of today we are all caught up with withdrawals and support tickets but considering it’s New Years eve you can expect some delays over the next 24-48 hours.
After New Years and the holiday weekend everything will be back to normal on Monday! We are hiring two more support people in January to keep up with our growth and a new marketing director who will really help us communicate better with you in all languages.
Thanks for making 2015 an incredible year and we hope you are excited for 2016!
BitClub Network is the world’s largest crowd funded mining pool for the people! It can be verified on Blockchain. Note that in this example, I began with the $599 mining pool and my earnings on top of what you see were applied to my upgrade to a founder position in all 3 mining pools. I didn’t upgrade until 30 days to the top mining pool that is why the mining earning appear less that they would be if I had come in initially as a founder at the $3599.
Join today at http://www.bankofcommunity.com/visit/bitclubnetwork/