[Investment Warning] Bitclub Network Review and Analysis

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Important Update: From time to time I get contacted by various people regarding this article supplying more evidence for either sides of this story. Each time such evidence arrises you will see it posted here as an update.

August 15th update: Since this post was published I was contacted by Joby Weeks. We basically agreed to disagree. However I decided to rephrase the title of the post from “scam” to “investment warning”. After gathering the facts I can’t prove that Bitclub network is a scam beyond a shadow of a doubt. I do however still think Bitclub Network is very shady and wouldn’t advise anyone to invest in it.

Over the past few weeks I have been seeing these ads for a company called “BitClub Network” on my Facebook feed. I decide to amuse myself and take a look at the video ad only to find some dude that doesn’t seem to know that much about Bitcoin trying to explain why you should join the “BitClub network”.

I believe the video speaks for itself when I say it’s 5 minutes of total gibberish that doesn’t give any value to its viewers. I can safely say that the person on this video doesn’t really know what Bitcoin is and is just reading his text from a page. My favorite quote is probably “There is something called Bitcoin mining, you can get it from lots of places on the Internet” (1:16).

Bitclub network (pardon me for not linking to them) claims to be some sort of mining operation where users invest their money in order to get a part of the revenues generated by the BCN mining pool. You can also generate revenue by referring others to join BCN.

Now, since I have a really big fetish for discovering Bitocin scams and Ponzi scheme I decided to take a deeper look into BitClub Network (also known as BCN) and see if it’s indeed a Ponzi scheme.

For those of you who don’t know what a Ponzi scheme is – it’s a fraudulent investment operation where the operator, pays returns to its investors from new money paid to the operators by new investors, rather than from profit earned through legitimate sources. Usually there’s no actual product or service that the money is being invested in.

So basically the new members of a Ponzi scheme finance the payouts for the old members. This goes on until no more new members come on board, the money runs out and the operation shuts down leaving a lot of people shocked because they didn’t get their money back.

Now for a short example. Let’s say you (the investor) pay the operator $100, and they promise to pay $10/month for the next 12 months (meaning you’ll get more than what you invested). You may be thinking “how will he have enough to pay me after 10 months?”

One option can be that they are investing this money legitimately into some sort of profitable operation – for example, Bitcoin mining. So the operator may actually buy mining equipment to generate income, in this case the money you and other members paid when you joined is like some sort of a crowdfunding campaign.

Another option could be that they are getting money to pay their members from new people joining down the line in order to finance the older members like yourself. This is where referrals come into play.

Imagine the operator saying: “if you bring someone else into this scheme I will pay you an additional commission just for bringing them in”. So now you get someone else to pay $100 dollar to the operator so that you will get a $10 commission and more money will flow into the system to pay the members. Of course the new members are then motivated to bring more members on board.

Why is it so important that everyone will bring in referral? Because in most cases that’s the most consistent source of income for this scheme. And even if the money is invested in some legit operation it’s not consistent enough to cover the payments for all of the members. Usually members joining these types of operations expect a consistent positive return or they will leave. The operator knows that and that’s why he tries to fulfil this impossible request of generating great revenues every month without any risk through other sources (i.e. new members coming on board).

Another way to make the Ponzi scheme survive and not run out of money, is getting the investors to re-invest their money back into the operation instead of withdrawing it. This way the members think they own the money because they see their account balance, but in reality there’s no way they will be able to withdraw that money into their own bank account. The re-investment process is used to keep the investors in the game and delaying the “point of failure” of the Ponzi scheme.

To conclude Ponzi schemes usually survive on the fact that:

  1. New members are added down the line (and are required to pay a membership fee of course).
  2. Old members re-invest back their earnings into the scheme in order to increase their (virtual) revenues.

These 2 characteristics are very important as we will see how they line up with BitClub Network.

My Hypothesis – BitClub Network is a Ponzi scheme

Now it’s time to break down BCN’s business model and see if it’s in fact a legit company. I’m going to use various tools to do this – most of these tools are aggregated inside the Bitcoin scam test we’ve lately created here in 99Bitcoins.

How legit is Bitclub Network?

The first thing I did was to see who is the registrant for the domain Bitclubnetwrok.com. Not surprisingly the domain is under private registration which is the first red flag.

bcn registration

When I continued my search and went to the “About” page of the company I couldn’t find any real identities that run the site. The only thing that’s stated is:

BitClub is not owned by any single person or entity, 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.

I word of caution – Whenever you see some vague statement about a companies members in the “About Us” page like “we are a team of experts” and no real person is portrayed behind the company – RUN.

So I’m guessing someone doesn’t want to be found. After numerous searches online I couldn’t find one individual who is supposedly in control of BCN. I found a lot of marketers and promoters but no owners. I did find two official BCN webinar but for some reason the host of the webinar doesn’t bother to introduce himself. Also it seems that BCN failed to register with the SEC and therefor doesn’t operate in the US – another red flag.

Trying to dig up some more information on BCN I found something extremely funny. The website used to have testimonial from “customers” as shown here:

bcn testimonials

As you can see Victor Diaz is pretty happy with his investment in BCN. But apparently Victor’s real name is Ali Ansari and he’s a convicted rapist that has been in jail since 2013:

bcn rapist

So I’m guessing Ali probably changed his name and got to bring a laptop and some Bitcoins to his cell for good behaviour. The website also showed a bunch of other fake photos that their sources were traced around the web. All this information is detailed on the original BitcoinTalk thread. Shortly after this came up BCN removed all of the images from the site and now you have only names and not photos in the testimonials.

Some additional searches about BCN on YouTube will reveal a video that look like a news reports endorsing Bitclub Expert (2:01 in the video) however this video was clearly made through a $5 gig on Fiverr (only with a different presenter).

I later on contacted BCN’s support asking them pretty clearly who own BCN if I have any issues and gotten the following response:

bcn response

So basically it’s the same empty words directing me to what is stated in the “about” page – how BCN is decentralized and no one owns it. Well if no one own it (like Bitcoin for example) there should be a protocol that details the rules of how things work – that is not the case here.

One final thing – BCN doesn’t seem to have a privacy policy or terms of use on their site. I would assume that any legit company would have these pages on their site. The main reason for not having these pages could be that these pages require you to put identifiable information on them – and BCN would like to avoid that.


August 29th update:  I’ve been contacted by yet another BCN member saying the following:

I want to update you directly, without adding a link to your blog replies. I am a member of BitClub Network and I was referred into the business by a good friend. After I found out, that the “Company” is run by criminals and rapists, I posted this info on steemit.com.

You are welcome to link, refer, copy my post. Please spread the word.
BCN is a scam and you can not get your money back!


How much money do you need to invest in BCN?

Usually these type of cloud mining schemes are either too good to be true (i.e. scams) or just not worth you investment in the long run (e.g. Genesis Mining). So I decided to do the math behind BCN myself. The first thing I noticed is that I can’t sign up to BCN without a sponsor.

Sponsor needed bcn

This pretty much reenforces my Ponzi scheme theory that BCN relies heavily on referrals. I mean if this is a legit operation that generates constant profits why would I require a sponsor to sign up? Can’t I just “join the party”?

Alas, I needed a sponsor so I just used the guy from the YouTube video. I mean he started me off on this whole journey anyway, so good for him. Of course the minute after I signed up I was prompted to pay $99 to join BCN without any option to see what I will actually be getting.

Sign up steps bcn

So the steps to join BCN are basically:

Step 1: Set up a Bitcoin Wallet

Step 2: Fund Your Bitcoin Wallet

Step 3: Send Bitcoin from your Wallet to our BitClub Address

You got to be kidding me… Basically the site is saying, go buy Bitcoins and then send it to us without ANY explanation of what you’ll actually getting.

Actually that’s not entirely true, if you read down the page you can see some meaningless bullshit like:

  • Training and education about Bitcoin mining
  • Full access to our exclusive Bitcoin Mining pools
  • ClubCoin Opportunity – Get Free ClubCoin

At this point I have a ton of questions like:

  • What does “full access” to a mining pool means? (I can access many mining pools around the web without needing to pay a starter’s fee)
  • How much money will I make? Or what’s the return on my investment?
  • What the hell is Clubcoin? (other than being ranked #619 in the cryptocurrency list right after more anonymous coins like MayaCoin and LeoCoin).

So for now it seems to me like a lot of pretty words to cover up the fact that there is no valuable proposition behind the scenes. Of course I did not pay the $99, however if I did pay the membership fee I would them be enticed to pay another $500 or more for different mining packages.

Let’s do the math!

You pay $99 just get access to BCN and then you can choose between 1 of 3 packages – $500, $1000 and $2000. Depending on which package you chose you will get a percentage of the mining pool earnings. For example, if you choose the $500 package you will get 50% of your share in the pool and the rest will “be used to fund the mining operation and to purchase additional mining shares”.

I must admit that BCN does have a very legit front with their mining pool being responsible for 4.2% of the Bitcoin network’s activity. So at least they are not lying about actually mining Bitcoins. Now let’s see how much we can earn with BCN.

Each day around $1.1m is paid to Bitcoin miners around the world. This means that BCN makes around $46.2K daily or $1.4m monthly (4.2% of the daily mining revenue). This of course will need to be distributed amongst all of BCN’s users.

So if for example, you got the $500 package that lets you keep 50% of the earnings you’ll need to make $0.83 a day to break even after 600 days (that’s how long the package lasts). Since you’re keeping only 50% this means you need $1.67 revenue a day to break even.

Now remember, this is only if you want to break even after 600 days, if you want to actually make a profit you’ll need to make more. I’ve searched for hours around the web for “proof of profit” and couldn’t find a single person who shows profit. Every testimonial is just the same rehash of empty words about how this is a great tool for passive income.

But if you think about it this is very logical as people are trying to increase their profit by brining even more people on board and getting referral commissions.

August 22nd update: I actually found a video describing the earnings after 1 month of mining. The video shows earnings of around $15 for 25 days. This would make a total of $360 after 600 days if Bitcoin’s price stays the same. However it’s not fair to judge this according to USD since the investment is in Bitcoins. From the video you can see that the guy is making 0.0012BTC on average daily. This would bring him to earn 0.72BTC after 600 days. The video was shot on April 2016 when 1BTC ~ $420. So the guy probably paid somewhere around 1.2BTC in order to get 0.72BTC back after 600 days.

Some may argue that if Bitcoin’s price would skyrocket then he’d make more than the $500 he invested, but that would be true also if just bought and hold Bitcoins with those $500 and didn’t invest them intot BCN.

Another YouTube video claims to have made more than a million dollars with BCN since he started out on October 2014 (22months ago).  But when he shows his personal dashboard you can see that he was only paid 5.35648BTC until today. He also states that he bought one share of $500, one share of $1000 and one share of $2000. This means that he invested $3500 and got somewhere around $2500 until today (since the Bitcoin price varied a lot in the last 22 months I took a rough average).

YouTube payouts BCN

The rest of the earnings for this account are only “on paper” I guess. The video also states how he used the rest of the earnings to reinvest into buying more shares. Meaning no money is actually withdrawn from the account.

As a matter of fact most if not all of the testimonials show how they reinvest 100% of their earnings in order to generate more revenue even faster. These people think they are making money when they are actually just seeing numbers increase on a screen.

Of course everything seems nice and dandy when nobody is withdrawing their money from BCN because it seems like they are profiting, but once a critical mass of people start to withdraw their balances you will see how the Ponzi scheme falls apart in days. It’s the same old story all over again….(very similar to today’s banks by the way).

August 16th UPDATE: After publishing this post I’ve gotten response from Joby Weeks and other BCN founders as you can see in the comment section. Joby supplied me with a video they made a year ago showing proof of earnings. I can’t vouch or dismiss this video but I think it’s an important piece of information. This earning video is from someone who joined BCN from day 1 in 2014. (if you can’t see the video click this link)


Unable to display content. Adobe Flash is required.

So who is behind BCN?

Honestly, I don’t know. The only “real person” I could find is a guy named Ryan Conley that seems to be a seasoned MLM marketer. However, Ryan doesn’t say he owns BCN, he only does aggressive marketing for them through YouTube videos and other online marketing techniques. I will not state my opinion about Ryan’s operation in this post, but I will mention that he used to endorse OneCoin (suspected to be a global MLM scam) and that he seems to be a professional MLM marketer. This means that it’s in his interest to get more people onboard so I won’t expect to see him driving people away from BCN.

The only video I could find about someone claiming they have established BCN is this video from Joby Weeks. It was uploaded under Ryan Conley’s YouTube channel and Joby specifically says “What we decided to do was to set up our own data center up in Iceland….and crowdfund it if you will….”.

So Joby basically implies that he is a part of the BCN founding team. In the video description Ryan details:

“My business partner at BitClub Network and fellow Bitcoin miner Joby Weeks explains on his sea cruise what is taking place.” This makes me wonder if Ryan and Joby are indeed working together on BCN but are just not admitting it in order to avoid the public.

Even though the owners of BCN can’t be verified beyond a shadow of a doubt, there is evidence supporting the idea that factions of the Zeek Rewards Ponzi scheme might be behind it. Another theory that came up is that Clubcoin – a cryptocurrency used only by BCN at the moment was introduced in order to make up for lack of funds to pay to investors.

This means that instead of investors getting Bitcoins for their investment they will receive Clubcoin – a cryptocurrency that has no real value or substantial trading volume. This quote is taken from the official Clubcoin website:

who accepts clubcoin

Now that you have Clubcoin where can you spend it? BitClub Network is the first merchant to accept Clubcoin

So basically there’s nothing to do with Clubcoin other than to pay for your BCN mining operations. By doing this BCN is basically saying “Here’s a worthless coin you may be able to trade with other people who may be willing to pay for it for some reason”. So now investors are saying “Hey, we are actually getting paid!”. But the fact remains that they are getting something that no one really wants and that they may not be able to sell anywhere.

Another last thing to keep in mind is that apparently the only payment method BCN accepts are cryptocurrencies. This seems to be in order to keep the individuals behind BCN anonymous. I mean if the operation was completely legit they would accept credit cards (like Genesis Mining for example). However, since they do not want their identities known they allow payment only with Bitcoin.

Bitclub Network has a HUGE warning sign hovering above it

Summing it all up BCN seems to be following a similar path to a lot of other Bitcoin scams that have gone bust. I admit that BCN probably has a valid mining operation up and running but I’m still convinced that it is (or will become) insolvent and will not be able to pay out the majority of its investors.

Much like what happened with Bitcoin Trader  in the past and numerous other HYIPs that survived a long time before completely collapsing, BCN  fails to pass the main questions you need to ask yourself when evaluating any Bitcoin investment such as:

  • Who is behind this operation?
  • When will I break even on my investment?
  • What is the actual product that I am investing in?
  • And much more…(see in the comments)

Another thing to consider is that the recent block halving has probably put a dent into a lot of mining pools including BCN’s. It will be interesting to see how this plays out in the future.

Finally, here are a ponzi scheme’s characteristics taken from the SEC’s web site, let’s see how BCN does on the Ponzi test:

  • High investment or return promised with little or no risk. CHECK
  • Overly consistent returns – “Normal” investments tend to fluctuate – sometimes you’re profiting and sometimes you’re losing. A common characteristic of a Ponzi scheme is that you are consistently profiting money. CHECK
  • Unregistered investments – Usually you won’t see a Ponzi scheme company registered with any financial authority. CHECK
  • Vague language used to explain the investment – The promoter sells shares to investors by taking advantage of a lack of investor knowledge or competence, or using claims of a proprietary investment strategy which must be kept secret to ensure a competitive edge. Another option could be that the investment strategy is too complex to understand. CHECK

Last but not least several reports have been posted on Reddit indicating BCN reps trying to get people to sign up through Bitcoin meetups. The reps infiltrate the meetup or in some cases create a specific meetup that allegedly teaches people about Bitcoin just in order to get them to sign up to BCN.

I highly advise not to put your money into this business and if you’ve already invested in it withdraw it as soon as possible. I have no doubt that BCN will go bust sooner or later. It may not happen today, this month, or even this year, but when it does a lot of people are going to feel ripped off and hurt, so make sure you’re not one them.

TL;DR version of this post:

Bitcoin scam diagram

If you have had any experience with BCN (good or bad) and would like to reinforce this article or prove me wrong I welcome it. Feel free to leave your comments in the comment section below.

August 18th Update: 

A “regular” BCN member reached out to me today via email. When I say regular I mean someone who isn’t a founder, hasn’t invested a lot of money in BCN and doesn’t have any incentive of protection the company. Here’s what he writes:


“I am a member of Bitclub Network and I share most of your doubts.

First I also feared it is a Ponzi scheme, that the 500$ investment is used to pay out the earnings to the members. Then I observed the earnings for a while and started to create my own profit simluations. It is based on the actual earnings and forecasts the future based on certain factors. I will come to that in a minute.

Now, after my observations I do not believe that the investments into the pools are paid out as earnings, but I highly doubt that the earnings from mining will be enough to pay out the original investment, let alone to make profit.

He then goes on to explain exactly how he did the simulation (I’ve excluded  some of that part as it contains identifiable information).
In the simulation I assumed a BTC price of 1500$ to show that potentially it could work. If you set the price to stay at 600$ the result is rather sad. However if the earnings would double with the factor, again totally different picture.
You can see that the earnings vary based on the actual mining. This is according to my observations in line with the found blocks that can be tracked on the blockhain. The halving is very visible in the simulation.
– Why are the earnings per day constantly declining in a 10 day range until they are changed to a different level? Although my number of shares are actually rising e.g. from 1 to 1,005.
Answer and explanation from Bitclub: Mining equipment is purchased with the new investment in pools. However, the equipment can not be delivered constantly. They say they had a huge order of new S9 Antminers, but because of a delay from BitFury they could not be delivered. This means that new money into pools did not constantly lead to new hardware. The hashrate stayed the same, but earnings are distributed to more pools. Result is, less earnings per share.
I personally think the information about this in their advertisements is misleading. They claim that they purchase new hardware with my money, it will take 10 days to deploy the hardware and therefore there is a 10 day waiting period for every investment to start earning. The same goes for partial reinvestments.
So far the Hashrate has stayd very stable around 45-49 PH. So I am very disappointed in the first 60 days of my investment. 
Just to be fair BCN it’s important to state that BCN doesn’t claim quick profits and say their investments are long term, so you can’t actually judge an investment after a two month yield.
The information from Bitclub is that the new hardware has finally arrived and they are starting to deploy from August 13. This can be actually seen in the hashrate. It has gone up recently to about 60 PH. The goal is, they say to reach 100 PH by the end of the year.
This gives me a little hope of higher earnings. But I haven’t seen it yet in real numbers. 
You are totally right that you cannot find real proof of earnings from mining online. Mostly it is blurred with earnings from comissions. The comissions they pay are great. And this is how they convince a lot of people to join. Claiming to earn 2000$ per day. But these earnings are purely based on commisions through the cycles of the MLM chain.
Personally I have not sponsored any one yet. The only comissions I earned are from my own pools. I cannot recommend it to anyone until I see a real potential for making a profit or even get your investment back.
I am still hopeful that Bitclub Network is not a scam, and that they are honestly trying to create profit though mining. The fact that they do not seem to pay that what is earned on the blockchain gives me hope. But the actual numbers so far are worrying me very much if I ever get my investment back.
 The communication through the upline of the MLM is sadly very typical for the MLM world. Everything is great, the best things are just about to start. The new products like the arbitrage robot will be even better and making more money. But critical questions are either ignored or half heartedly answered or answered in a way to make the critic look stupid. 
Also, you don’t want to be the spoiler, because your sponsor might be a close friend or family member. The marketing relies on a network of relationships. I don’t want to make my sponsor look bad, because he is a friend and he has sponsored a lot of people in this group.
That is why again, please keep this message anonymous,
With kind regards.

 

If any other members of BCN share similar feelings or perhaps the complete opposite I encourage you to share them in the comment section in this post or via email directly to me. It’s important to show the whole picture and not just the one sided view MLM marketers usually portray.

Find the best exchange to buy Bitcoins


Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

43 Comments

  1. How can i rely on your opinion when you can misspell bitocin (bitcoin), netowrk(Network) and many things like this, thia Looks More like a competitors opinion then nothing else.

    • Thanks for bringing my attention to the typos, just fixed them. Regarding my opinion, you’re free to ignore it, just make sure you do your homework before investing in anything, that’s all. Good luck!

  2. PS, Because the BCN news are “for members only” on the bitclubnetwork.com website … you may want to read the news section on my website http://bitclub.com … which are simply a copy of the BCN news that I put on the public space for all to see – Perhaps you’ll learn some things there and better understand the meaning of transparency.

  3. Long live to the BitClub, the ClubCoin & the CoinPay !!

    Ofir, you’re one of the first I discovered when I got into that crypto universe. I had some respect for you & what you did but after reading this : You lost it all…. What bother me the most is that you’re making a review and don’t even bother bother to join the Club = Meaning : You have no idea what you’re talking about and most of your words are speculation… It’s sad to see that you’re misleading your audience.

    Best thing I read here : They say that when a man, who is honestly mistaken, hears the truth, he will either quit being mistaken or quit being honest…

    • “They say that when a man, who is honestly mistaken, hears the truth, he will either quit being mistaken or quit being honest…” – Not sure who you are (since like to many other BCN supporters you also seem to be protecting your privacy) but if you’re so keen about the truth I’ll ask you what I’ve asked all other BCN supporters – Is there any chance you can share some of your experience and revenues with BCN so I can see the error of my ways if they are indeed mistaken?
      I’ve had some people that denounced BCN share their experience and revenues after being active members but non of the supporters. Would appreciate if you can shed some light on this.

  4. Hi Ofir,

    I wrote the email that you posted at the end of your article.

    After 200 days I increased my shares similar like Chris. I agree, it should be possible to reach 2 shares at the end of the 1000 days. According to my simulation I have to keep the reinvest on 100% until they reach 1.2. That is because of the compound interest effect. However there will be no profit after 1000 days. The break even is around 1500 days. Assuming same average earnings and similar BTC price.

    2 things I learned in the 200 days and through simulation.

    1st the mining earnings are constantly declining. They go only up when the market share of Bitclub on the Blockchain increases. But that has been very stable. It only went up significantly when they canceled the 1st share of September 14th 2014 through June 30th pools as mentioned in a comment above. Since then the earnings have come down to an average level again to about 0.00089 BTC per day for a 500 Dollar pool. The reason why it declines is the market share has stayed stable at about 5 found blocks per day on the Blockchain. At the same time the number of total shares in Bitclub pools increases through constant reinvest of existing members and through selling pools to new members. So the same amount of BTC is divided through more number of shares.

    2nd the effect of the bitcoin price.
    A higher BTC price is leading to a faster and higher amount of partial shares because you always repurchase partial shares when your reinvest reaches 0.5% of 1 share. This is calculated in USD based on the daily BTC price. (=2.5USD worth of BTC today).
    On average I reached 2,5 USD after 4-5 days. Now if the price goes up, you will reach 2.5 maybe every second day or even more than that daily.
    So in my simulation I thought, hey this is great when we reach a price of 1000USD or even much more all is well. Much quicker increase of shares and with the compound interest effect in the end a lot of profit.

    But if you think about it twice, it cannot be. Let’s say the price would be 10000 USB tomorrow. Everyone in Bitclub will repurchase a lot of partial shares tomorrow. But in total they will still mine 5 blocks per day and divide them by the now increased total number of shares.

    It took me a while to figure that out. Maybe I am slow, but I believe that most members do not understand this. Probably because of the way the sales guys pitch it to us. They always talk of the compound interest effect and that the market share will increase constantly.

    2 hints why I think Bitclub themselves have realized that the mining pools will not work in the end. 1st the termination of the 1st shares from September 14th 2014 through June 30th to pump up earnings temporarily and increasing the lifetime back to 1000 days. Who knows if that will be true. They can change the rules again can’t they.

    2nd a comment in their latest update from yesterday :
    “Please understand this market could change in the future and we are going to try and keep our mining pools open to new shares for as long as it makes sense, but at some point we may have to close the pool to new members.”

    I think they realize that the growing through mining will come to an end soon.

    They are now concentrating to hype everyone up about their ready to launch merchant platform. Which sounds very promising like always in the MLM world.

    The trading robot has been delayed for an unknown time because of legal concerns.

    Greetings and thanks again for this valuable article

  5. Hi there,

    thx for the article.

    I am invested in BCN since March 2016 and here is my experience/opinion.

    It’s clearly a high risk investment and only thous who can afford to lose most if not all of their money should get involved.

    First some facts that are missing in your article.
    1) They changed the uptime of a pool share from 600 to 1000 days. Even my pool from march and all the partial ones where updated retroactive.
    2) They changed the withdraw system some months ago. If you want to withdraw less than 2 BTC, they charge a fee of 0.002 BTC.

    I have invested 540 Euro in BTC. That’s about 90 Euro for the one time fee and another 450 Euro for the small pool. The first few weeks I repurchased 100 % and changed this setting to 50 % in May or so.

    Today I have withdraw 25 Euro for the second time. So within 200 days I made 50 Euro, a bit more than 10%. Lets do the math: 50 Euro in 200 days makes 250 Euro in 1000 days. That was simple :)
    In total I have earned 0.28428 BTC and withdraw 0.04748 and 0.045. And of course I lost 0.004 BTC due to the “lower than 2.0 BTC” fee.

    Since I am not MLMing a downline (and have no intentions to do so), that’s all for now.

    And that’s why it is a high risk investment. If (and only if) the BTC exchange rate rises, the game will become profitable. And only, if the exchange rate surpasses a certain point. If not or if it stays the same, half of the money is gone – at least for the moment.

    After these 200 days I have increased my pool shares to 1.1818 by repurchasing. So after 1000 days I should almost hit the 2.0 before the original 1.0 from the beginning fades into non existence. That makes the system interesting again. Because in theory, the pool shares coming and going should cancle each other out and I should have a constant share of about 1.0 in 800 days from now. But only theortically.
    I share your view that it might be a ponzi scheme. If that ist he case and it collapses it depends on how long I was invested. I could have made some money or lost most of it.

    With time we’ll see. As I said, if I lose the money it wouldn’t be nice but it wouldn’t be the end of the world neither. On the other hand, if the exchange rate grows (my sponsor said something about 1000 Euro per BTC by the end of the year (that’s what the “experts” are saying, what ever that means) in the upcoming years BCN could be an interesting opportunity to earn some extra cash.

    Greatings from germany!

    • Chris, I can’t tell you how much I appreciate your honest response on this matter. It’s very rare to find BCN partners that are willing to expose this much information. After reading your review my suspicion that BCN is probably a questionable business opportunity increases since in the same manner if you’ve just held your Bitcoins in your pocket and the exchange rate climbed you would have still made money – that’s nothing to do with BCN.
      So it may not be a Ponzi, but it’s a very misleading business opportunity in my opinion. Thanks again.

  6. I am glad I found this information and the threads on bitcoingtalk.org about BCN.

    Few months ago, a friend who got involved with this and passed on to me. Luckily, I did not spend a dime one it, other than just wasted time researching it. Which led me to a lot of different website, and nothing really concrete as to if they are a scam or not, but then again nothing concrete to prove they are not a scam.

    I also stayed away because it smelled too much like of them HYIP scams of the past such as Justbeenpaid “JBP” or zeek rewards, but the difference here was the use of bitcoin and in the name of bitcoin.

  7. Hi out there it seems easy to say BCN is scam without depth knowledge. One of the critical points often said who is behind BCN. Do you know who are the people behind S2 Mining and other pools. Nope. Why ? Because handling millions of Dollar each day is risky by treaten from robbers and surgery.

    Fact is if you doesn’t do anything you have a mining reward with BCN following a ONE TIME INVESTMENT From 2.35 Dollar each day. Up to the end of your life.

    During u use a reinvest you increase your earnings and will have after 600 days 4800 Dollar for sure.

    That’s a more than 20 percent return. You never get this by bank contracts or something else.

    And what comes on top is that Bitcoin prize raises up and you make extra money.

    In a Ponzi scheme u have always to invest from your own money and buy always new products.

    Here you do nothing but investing one time 3600 dollar.

    You can do also with 500.

    500 Dollar for lifetime return is pretty much less and you do not have to invite other people etc.

    BCN also has a open mining pool where you can mine for free by 100 Percent return

    So if you will say something about think.

    We pay all but we have back office updates due to permanent hacker attacks. So sometimes we make updates and it will come you receive your earnings a few day laters but it’s all documented and clear.

    Try out 500 Dollar and you will see. But don’t write without mind and information none the less

    • Hey DJ, it seems like you haven’t read all of the previous comments in this article as you are stating the same things the BCN supporters were also saying. All of the issues you’ve stated are basically just buzz words – if you do the math you see that investing in BCN actually loses you money in the long run, with the added risk of not getting paid at all (although we haven’t reached that point yet).
      Saying that someone stays anonymous in order to avoid being threatened sounds pretty absurd to me, as the other very profitable Bitcoin companies are totally transparent in who runs them. In any case, like I said to all of the other BCN supporters – if you could post some proof of earnings here it will really help to clear the picture. However, each time I ask this people tend to disappear….

    • “DJ” should stick to music, he obviously finds numbers too much. And “lifetime” return??

      BitClub Network’s own members News section states on Sept 1st:
      “… June 30th purchased Mining Pool #1 has made back $297.18 of their original $500 after 418 days of mining.”
      (The original $500 was in fact $599, because of the mandatory ‘joining fee’ of $99.)

      So, after well over a year, he has got back less than half his original investment in $.
      In Bitcoin, it’s even worse: 2.5 btc spent, 0.5137 returned.
      20.5% ROI in 14 months.

      Many investors fell for the sales pitch of “getting into Bitcoin” thru mining with BCN. Had they just kept the bitcoin that they gave them instead:
      On June 30th, Bitcoin was trading at about $240, so $599 would have bought 2.5 bitcoin.
      On Sept 1st, 2.5 bitcoin were worth $1140.
      190% ROI in 14 months.

      • Just to clarify the use of the term “ROI”. It = return on investment but…
        Investments buy something with a resale value, which also provides an income. Paying a non returnable fee is not an investment, it’s a cost.
        An example of the former would be a stock or share in a public company which pays a dividend. You buy $599 of shares and get a $60 dividend. That is 10% ROI but the investment still has value. You can sell the shares anytime and recoup (hopefully more than recoup) your $599.

        If you buy a BitClub Cloudmining contract for $599, that money is gone. It is a cost, not an investment because your “contract” has no resale value. They may pay you $60 mining “dividend”, which they would say is 10% ROI, but you’re still 90% out of pocket overall for $539.

  8. I see that BCN have virtually agreed that their business model is a Ponzi by unilaterally ending early contracts and stealing from anyone who isn’t in the “Founders” clique.
    To quote their latest news

    ” All members who purchased a mining pool share during the early days between September 14th 2014 through June 30th 2015….are simply taking up too much of the pool.”

    What that means, in other words, is that because of the minimal returns being experienced by all genuine investors (i.e. those gullible souls not there just for the affiliate commissions) any non compulsory reinvestment has tanked and there is now not enough income from their “Front” of mining to service their obligations.
    So they just deleted people’s investments.
    I don’t want to post a wall of text here, nor am I after clicks for my thread, but I’ve posted more thoughts on this on the BCTalk link that you have included above.

    • Thanks I appreciate this update. Indeed it seems like it’s a matter of time until this whole operation goes to hell…

      • BCN are now in the process of launching their new get-rich-quick automated trading bot, tied in with Genesis Mining.
        This is common with these type of people, there’s always the “next big thing” ready as soon as the initial scheme shows signs of having peaked.

        Anyone tempted to give them any money should ponder this 18/28 month lock in

        “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. More details will be provided about this and the payback will depend on many factors.”

        Many factors……

        • The ‘get rich quick’ bot has now been shelved indefinitely and BitClub Network’s mining pool is the subject of a BitcoinTalk “Scam Accusation”, started by a reputable miner who is owed nearly 5 bitcoin.

  9. I had a view of the video but it doesn’t seem to be like he is reading off a script. Seems pretty clear to me coming from the mind of a lawyer. How did you arrive at that he was reading off the script and it is gibberish?

    • Not sure if it’s a script entirely of just bullet points, but he seems to be calling Bitcoin “bitcum” at one point. Also it seems that his phrases sometimes aren’t flowing as they should if he was talking from general experience. Like he’s “surprised” with what he’s saying, not sure if that makes any sense.
      In any case it’s clear he doesn’t know that much about Bitcoin and cryptocurrencies.

  10. Matthew Foster on

    Holy Mother of Awesome.

    Ofir – I’ve only been into Bitcoin for about a month – fortunately I came across your site pretty quick.

    I’ll have to send an e-mail – but honestly. Thank You.

    Power to the People.

  11. what if you could verify all your daily receive Bitcoin is indeed newly generated coins .i guest the daily payout transaction on the blockchain could speak for it self .BCN is the first crowd funding network that could rely proof their existence in the mining world. BCN started the first decentralize crowd funding project and its still growing strong
    further more mining is at is infancy a few years back and its only a child now.but yet we know that the process of mining require more hashrate everyday to cope with the raising difficulty every 14 days.
    not agree that BCN is a ponzi however you might call it pyramid
    BCN wants to remain anonymous as Bitcoin .so why is it important to know who owns BCN just because it is not operating in the US does not mean that is a scam

    • Hey Knight, thanks for your insights I appreciate it (even though I disagree with some). I was wondering if there’s any chance you’d share some of the revenues created by BCN since I can’t seem to get any single advocate of this network to do so. What do you say?

    • In fact you cam verify that quite easily (I mean technically), but:
      -Pool rewards do not have to be paid exclusively from the new coins, in fact I would be surprised if they were
      -Significant number of BCN members would have to provide such proof in order for it to have any value, and I doubt you could find them, if Ofir says he could not find even one

  12. Thank you for this in-depth analysis. I am glad to be under your wing in the Bitcoin world and look forward to your continued expertise and guidance.

  13. Pls i also bought a package on Onecoin and i don’t know my faith yet as the Tokens submitted for mining almost five ago is yet to come out as coin. Pls do a thorough job on Onecoin too and advise me personally via my email as i ‘m very scared about my investment now including my too downliners!

    • I guess it’s time to move forward, take as much money as you can out of one coin, this will not end well.

      it’s just like our monetary system, unsustainable long term and will crash one day. but one coin will definitely collapse much much faster. get it out while you still can my friend. if you can’t, sell your entire account to someone who is willing to take it.

      Best regards.

  14. Thanks for this timely warning, i ‘ve since have my doubt about this Bitcoin mining site. Thank God i ‘ve not invested. Presume it will turn out as another Hashocean that i lost a lot of money. Tks!

  15. Hi Ofir, great analysis there.

    I would like to point out that there were Bitcoin meetups that were organized using the meetup app, and they were taking advantage of that to recruit members. That I can confirm.

    Probably the reason why it’s “INVITE” only is to promote their exclusivity to join this “investment”. Just like how Bernie Madoff did, people who wanted to join had to be big investors and have good connections. Those small time wall street investors will not stand a chance to join his scheme.

    I’d really like to thank you once again to help warn people about BCN, but here’s the thing, you can’t stop HYIP/Ponzi/Scams around the world. People will continue to fall for these type of “free lunch” everytime, we’re only human.

    Invest in yourself, your family and your beloved friends. Others are just a extras, it’s not your responsibility to warn them. HYIP has and will continue to exist no matter what currency we are using, even if it’s sea shells. Let people learn the hard way.

    As you can already see, people are trying to convince themselves that this is a legitimate “investment” even after you present the facts. It saddens me that humans are always trying to exploit each other for profit.

    Best Regards,

  16. The reason why it’s so important to warn people about Ponzi schemes early is because by the time it collapses in on itself, it will be too late. Hell. If you’re one of the people involved with it and you’ve made money, good on you but this clearly sounds like a scam. If it sounds too good to be true it usually always is especially when it comes to money. And if you’re going to try to run a scam on someone why wouldn’t you do it with Bitcoin? It’s easy enough to get away with. I’ve seen plenty of people get away with probably hundreds of thousands of dollars worth of fraud on the small p2p loans I’ve been involved with and it’s a problem because there are no repercussions for scammers other than ending up with a poor reputation in the community. Even if people are walking away with money that doesn’t mean anything. It’s only down the road that we will see that this was all massive scam and huge waste of time.

  17. Ofir, I tried to reach out to you on Facebook, however due to the time zone difference I missed you.

    Rather than leave a long message, I have recorded video chat speaking to your points.
    This will make sense once you see the video in it’s entirety.
    https://youtu.be/oZA6NhEf8vg

    It is essentially a call to the Cryptocurrency industry to put a stop to defamatory behaviour,
    suggest that poorly researched opinions do not serve to protect us, but undermine value.

    The only piece I ommitted, is to further challenge you on the un-researched and defamatory assessment you made of ClubCoin. ClubCoin is a genuine Alt Coin Bitcoin on the Blockchain. I recently sold some ClubCoin for AU$1100 in real cash at a 56% upward swing. ClubCoin is an easily tradable commodity amongst genuine Bitcoins and has real world value. Your assessment of this is both erroneous and highly misleading. Which suggests that you are not familiar with Alt Coins and that you are leading your readers away from value. In fact, many Alt coins are the single reason that some people are making fortunes in coin trading. eg Steem and Sia are two Alt Coins that have a bright future, for very good commercial reasons. Additionally, BitClub has a very large global user base that represents one of the largest global Bitcoin consumer groups.

    • Hey Glyn, just finished watching you video thanks for putting the effort in setting this up. I’ll try to address as many points as I can here:

      You talk about Blockchain and of democratization of value – that’s awesome and that’s exactly what Bitcoin is doing. However, it’s not what BCN is doing. You don’t see Satoshi going around asking people for a sign up fee to join Bitcoin.

      If you want to democratize value you do it the way Bitcoin is built – anyone can join (no need for sponsors). This is not the decentralized model of the world we want to see where a company control the funds of the many and can take someone’s money without their permission (see this Bitcoin talk thread: https://bitcointalk.org/index.php?topic=1128258.20)

      BTW – I totally agree that today’s financial system is very similar to a Ponzi scheme, I even stated that in the post.

      You later say that if you can’t convert the value of something to real world value it’s a scam. Now as much as I’m happy that you managed to trade your Clubcoin for AU$1100 you need to look at the numbers. This specific deal you made accounts for almost 10% of the daily trade volume of Clubcoin according to Coinmarketcap. Do you really think that’s a viable market? This basically means that there are around only 10-100 people trading Clubcoin daily. So while some of them can get lucky and manage to sell their coins I don’t think this proves real world value.

      Just so you’ll get an idea of what I’m talking about – Clubcoin has 1/10 the trading volume of Steem and 1/1000 of Bitcoin’s trading volume. I’m all for altcoins, that’s why I even reviewed the most popular ones a few days ago: https://99bitcoins.com/bitcoin-alternative-6-coins/

      BUT, there have been numerous cases of Pump and Dump schemes with altcoins (I won’t link to them of course but just Google “altcoin pump and dump”). So not every coin that can be traded on Bitterex is legit IMO. especially those with low trading volumes.

      I agree with your point that I have reviewed BCN without using their service. That was my decision after considering the fact I will need to pay $600 in order to get access to what they are actually promising with no refunds available.

      I have been burnt myself with several schemes like this before (Bitcoin trader, BTC Robot, and one more I can’t remember its name). I don’t feel that I need to put my hand against the stove again to see that it’s hot. If the service is so reliable why don’t they offer a refund in case I’m not satisfied? If that were the case I would gladly jump on board.

      Another claim you make is that if you own a Billion dollar business or a financial institution you wouldn’t give your name and address – In that case what about Coinbase, Circle, Bitstamp, Kraken and numerous other Bitcoin exchanges that deal with millions of dollars each day and everyone knows who owns them. Also, even if they were to remain anonymous I would expect a financial institution to meet the minimum requirement of “terms of service” and “privacy policy” on their website. I don’t think the anonymity in this case comes from the cause you’ve mentioned.

      You also talk about discrediting others in order to elevate yourself – I won’t lie, I like the attention :) but in this case the article was put up in order to warn newbies. 99Bitcoins is dedicated to help people get started with Bitcoin – that means educating them as well. Unlike other organizations that take some sort of fee for this education we do it for free, we even give people their first Bitcoins in order for them to experience what it is without any charge. So I see it as our mission to also warn them about where they can lose their money.

      Regarding transparency – I’m all for it, and that’s exactly what I’m not getting with BCN. Last but not least, you are 100% right that I should have talked to BCN before publishing this post, however I didn’t really know who to talk to because they remain anonymous. I can say that I have sent their support a ticket 2 days ago and still haven’t gotten a response, but I that doesn’t mean anything yet.

      Again, I appreciate the time you took in putting up your response and reading this through. Let me know your thoughts.

      • these guys never come back to respond, logic destroys them. keep it up this thread is great, so many holes in them its easy! :)

  18. Thx for the clarification post above Joby.

    Ofir Beigel, you and your worthless site are a disgrace to the BTC community!

    Just like most ‘scam’ posts, the author writes his simple-minded opinion and doesn’t dig deep to get the facts. Says he does for attention, obviously not the case here.

    Amongst many other proofs, you actually think that BCN would have ANY chance of showing up on https://blockchain.info/pools if they weren’t actually mining and paying members!?

    Simple questions Ofir posted:

    > Who is behind this operation?
    Just like BTC itself, it’s about anonymity. If you can’t stand anonymity, don’t join.
    > When will I break even on my investment?
    What a worthless question in the field of BTC and BTC mining, Ofir! This shows your simple mind!! Any novice knows that the price of BTC and the success in mining has everything to do with the answer to that question and cannot be predicted!!!!!!
    > What is the actual product that I am investing in? Well in this case, you’re investing in shares of BTC mining and BTC mining equipment.
    > And much more… What much more???????? Bring on the questions you simple-minded, self proclaimed BTC expert!

    If you wish to save face Ofir, I would suggest reading that last line in Joby’s post above.

    • Hey Chad, I think you can learn a thing or two from Joby about how to voice your opinion in a respectful manner.

      Not sure if you’ve read the whole article but I’ve already stated that BCN is actually mining Bitcoins so no need to get mad about that. It’s not that I don’t think members are getting paid, it’s that the whole business proposition is misleading and is actually making people lose money.

      Regarding you comments – Like I answered Joby, anonymity is OK if you’re not asking anyone to send you their money. Once you take people’s money at least have the dignity to have your real identity behind it.

      Regarding breaking even – Let’s assume the BTC/USD price is constant, just for the sake of argument. I still think that if I buy $500 worth of Bitcoin today I will have more value from my investment one year from now than if I invest them in BCN. If I’m wrong about this than I apologize, but please provide some sort of proof to state that I’m wrong.

      Regarding the much more – here are some more questions:
      1. What’s the deal with the fake testimonials?
      2. What’s the deal with what happened to this guy on Bitcointalk: https://bitcointalk.org/index.php?topic=1128258.20 and he used to be one of the biggest BCN advocates.
      3. How come the official BCN profile on Bitcointalk has a trust score of -8 and a warning besides him saying “trade with caution” (https://bitcointalk.org/index.php?action=profile;u=371866)

      As I said in my response to Joby – I can’t prove without a doubt that BCN is a scam. However even if it’s not a deliberate scam it is a VERY misleading business proposal that makes people actually lose money.

      Finally, I understand you’re upset about this article since you’re promoting BCN yourself on your website. Perhaps you can share some of your earnings and shed some light on this matter, I think that would be the best way to go about proving either of our points. Let me know your thoughts.

      • Hello Ofir,
        A piece of information for you.
        My mother in law is on the Bitclub, this club branch is running in Mexico like a pyramid, she invest on a membership and the money is none refund to the members if they want to get out, but they ask to enroll more people in the scheme, you should check on cities like Cd. Guzman, Jalisco where this club is very active, and the new people who enrolls are been ask to make a cash payment to a person name Jose Chairez Wells Fargo bank account 3042283196 they give no receipt of the cash transaction, I would not trust this bitclub.

    • How do we thumbs down this non-constructive post ?
      CHAD, you are only discrediting yourself and the side you support with this sort of speech !
      Plus, you are the only one giving the simple-minded kind of arguments here. Seriously.

  19. Thanks for the link to my BCT post.
    Who runs BitClub Network?
    There’s many, many MLMer’s using BCN templates, but the most identifiable U.S. “Founders” seem to be Weeks, Joe Frank Abel and the odious Russ Medlin, with motormouth Conley cast as Mr. Pink.
    An entity called SecondsOld originally cited Romania as BCN’s origin (he’s still pumping it on Steemit), but there’s no particularly new tech behind BCN or its matrix. Just ruthless MLM sellsellsell with the tagline of “Don’t miss out”, similar to Onecoin in that regard.
    Your article referencing both Bitcoin Trader and Genesis Mining made me lol, because BitClub Network’s latest “must have” is an arbitrage bot developed by Genesis. Offering 10% per month on up to $25k stake money, non refundable.
    The usual suspects will pony up for Founder status, not for the recycled “profits”, but for the affiliate possibilities.

    Good luck with 99
    tmfp

  20. Ofir, many of your comments in your story above are not true. However, It seems like you would really like to know how Bitclub works and you weren’t just trying to write a hit piece. Here is my attempt to unmix your mixed message.

    Bitclub is an “invite only” club. You can’t join unless a member invites you. Just like most country clubs etc.
    (Why does that make it a scam?)

    Bitclub is far MORE than just a mining club, however members/affiliates do sell Bitcoin and Etherium mining hardware. (which you can take physical delivery of any time you want)

    Like the thousands of other companies around the world who sell Tens of Billions of dollars a year worth of their products, Bitclub uses the MLM/Network Marketing Compensation structure to pay commissions to reps who sell Bitcoin mining equipment. (There is a difference between a Ponzi scam and a legit MLM)

    People buy the equipment with Bitcoin and if they choose to share the Bitclub opportunity with their friends who decide to join the club and buy some equipment too, they get paid their commissions in Bitcoin as well.
    (Bitclub doesn’t want to deal with banks or fiat currencies)

    There is no requirement for a member to sign anyone up if they don’t want to. They can just sit back and collect the Bitcoin that their equipment in Iceland mines for them.
    (ponzi scams require new people to continue to join, otherwise they collapse)

    Neither Bitclub nor their members sell stock in a company or a security.
    (if they are not selling stock or a security, why would they need to register with the SEC?)

    Again the product being sold is bitcoin mining hardware.

    Bitclub does not claim that mining Bitcoin will be profitable. (although it has been profitable for many members thus far) Why do they not make that claim? Because, Its impossible to know what the price of Bitcoin will be a year from now and how many blocks the mine will be hitting etc so how could someone claim with any certainty that they will make money? Thats why Bitclub does NOT make that claim. We all believe the value of Bitcoin will increase along with the transaction fees etc. But no one knows for sure.

    Bitclub also created a proof of stake coin called Club Coin that they are giving away for free to their members as well. Kind of like how the airline industry gives away frequent flyer miles to their loyal customers. Club coin can be traded for Bitcoin anytime through Bittrex.

    Bitclub is also coming out with a merchant acquisition program called CoinPay.
    CoinPay will allow members to go sign up their local businesses around the world to become merchants who accept Bitcoin and Club Coin for their goods and services. When millions of people use and hundreds of thousands of businesses around the world accept Bitcoin/Clubcoin it will make the currency even more valuable. (Supply/Demand)

    Bitclub is also going to start putting ATM’s all over the world to make it easier for people to turn cash into bitcoin and vise versa. They plan on sharing the transaction fees with their members as well. (another scam?)

    Bitclub is also about to release an arbitrage trading platform for people who like to trade bitcoin.
    (another scam?)

    Now, you imply Bitclub is run by scammers out to rip people off. Yet you also admit that you don’t know anything about the people who set the club up… How can you make such a statement then? You ALSO don’t know who Satoshi Nakamoto is… Does that make him a scammer too? There are many people involved in Bitcoin/Bitclub who like their privacy. It doesn’t mean that they are scammers.

    Did you know that one of the biggest blocks in BITCOIN HISTORY was hit by Bitclub. (The reward was over $130,000 USD!!!)
    Did you know that instead of keeping all that money, Bitclub decided to DONATE it to a bunch of great charities?
    Bitclub made donations to The Blockchain Alliance, Coin Center, We Are Change, The Digital Chamber of Commerce, The Bitcoin Foundation, Project Cure, Manna Relief Ministries, Choice Humanitarian, Freedoms Phoenix, The Free State Project and others! (hardly something a bunch of scammers would do)

    Does Bitclub do a back ground check on every member from around the world that decides to join? Of course not!! Bitclub respects their members privacy. Many people join with fake names and emails etc. What if you were to join Bitclub tomorrow under a fake name and then make a video telling the world Bitclub is paying out 100% ROI a day. Would you be at fault for lying to people or would people blame Bitclub for you lying to people?

    I hope the question answers itself.

    I am a very happy Bitclub member and there are thousands of others just like me.

    Would be nice if you added what you have learned just now to your article.

    They say that when a man, who is honestly mistaken, hears the truth, he will either quit being mistaken or quit being honest…

    • Joby thanks for writing your side of story, however I feel I still can’t agree with you on most of the stuff.

      I personally think many Ponzi schemes start out as legit businesses and perhaps that is the case with BCN as well. However, from the looks of it at the moment (and I had no prior knowledge of BCN before starting to write this post) it seems that something’s fishy with the company.

      Mark Karpeles didn’t start Mt.Gox as a scam, but through negligent management it became one of the biggest “scams” in history. When you try to put the BCN puzzle together the pieces just don’t fit, and a large part of it is the overall feeling the company, website and people who market it give you.

      My main issue is this – you’re taking peoples money, at least have the decency to expose your identities. You don’t get to remain anonymous once you start dealing with people’s savings. Satoshi never told anyone “hey guys, buy some Bitcoins and they will make you rich” and that’s why no one cares that he’s anonymous.

      Furthermore, you say you don’t need to register with the SEC but in your boat video you say (and I quote) “Whatever the mine finds each day is evenly dispersed as a daily dividend to our shareholders” – sounds like a security to me.

      You also say that you don’t promise BCN to be profitable but you can’t honestly say that it’s not clearly implied from the video of you sitting on a boat for 18 days making passive income or from Ryan’s videos of buying a Mercedes with Bitcoin through his BCN earnings.

      Finally you claim that “you can’t join BCN unless a member invites you. Just like most country clubs etc.” – However I don’t think that a stranger putting up Facebook ads on my news feed can qualify as a country club referrer.

      For now I would love it if you can answer these 2 questions:

      1. Who owns BCN? I’ve actually sent this question to your support 2 days ago and haven’t gotten a response yet (I hope it will arrive).
      2. How come I can’t see any proof of earnings online even though everyone seems to be loving BCN?

      And you’re right – if this was a court of law I wouldn’t be able to prove beyond a doubt that BCN isn’t legit, and honestly I hope you’ll prove me wrong. But for now I will continue to discourage people from joining BCN as much as I can. Since even if it’s not a deliberate scam it’s a very misleading online business proposition with no one taking responsibility for it.

    • “Bitclub uses the MLM/Network Marketing Compensation structure to pay commissions to reps who sell Bitcoin mining equipment. ”

      “Again the product being sold is bitcoin mining hardware.”

      That’s why searching BitClubNetwork sites brings up a list of Bitcoin mining hardware for sale. Not. Nowhere. Never.

      To quote Bitclubnetwork.com
      “It works like this… You purchase a share in any of our mining pools and all Bitcoin mined from each pool is paid to you daily and shared with all members who are eligible for the pool. You can purchase shares for either $500, $1,000, or $2,000 worth of Bitcoin.”

      That’s not purchasing mining hardware. The clue is in the word “shares”.
      That ticks three boxes that Joby (Weeks) doesn’t want ticked
      (i) the investment of money; (ii) in a common enterprise; (iii) with the expectation of profits to come solely from the efforts of others.
      aka Howey Test definition of “investment contract”.

      The rest is just dissembling waffle.

      They say that there is a distinction between lying and telling half-truths, but it is a very narrow one….

    • Hello Joby,

      When I read your post, a quote came to mind: “methinks you doth protest too much”.

      If I knew only one thing about, and nothing else, it would be enough for me to distrust you. The fact that you use fake testimonials on your site, is enough to demonstrate your character. It’s such a small thing, don’t you agree, to be honest about what others are saying about you. If you can’t be trusted with the small things, then you certainly cannot be trusted with the larger and more important things, like handling other peoples money. But you decided to ignore that part of the article, didn’t you. ;)

      And one more thing, there is no such thing as an exclusive MLM program, it’s just a bit of rhetoric to play on the ego’s of those reading about your site. I’d go as far as to say that the phrase “exclusive MLM” is an oxymoron. And no, you are not a country club, county clubs don’t put photos of rapists on their walls and pretend that they are members.

      Keep up the good work Ofir.

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