Bitcoin Cash Back Online
Bitcoin Mining Update
GPU Mining Update – Still Down
BC Premier Open to Monster Builders
Monthly Rank Qualifications
CoinPay Token Giveaway Ending
ClubCoin Conversion Update
Recap of 2018
Bitcoin Cash is Back Online
All pending Bitcoin Cash withdrawals have now been paid to date. If you had a pending withdrawal during the Nov 15th fork then your withdrawal has been released and you will receive the same amount of Bitcoin SV as your withdrawal request sometime in the next few weeks.
NOTE: We are not supporting the Bitcoin SV coins held in your wallet, only the people who had withdrawals stuck in a “pending” state before the cutoff time will receive SV coins.
We have also fully moved away from paying commissions with Bitcoin Cash, but we will resume accepting BCH for payment of new invoices, Pay it Forward, and internal transfers from wallet to wallet within the next few weeks… Thanks for your patience while we dealt with another fork.
Bitcoin Mining Update
The mining industry has been a crazy roller coaster ride for most of 2018 and just recently it gave us all a big scare as the difficulty kept rising and the price kept falling. Luckily, the market got some relief with the last few difficulty adjustments moving down in a big way to match the price.
We say the difficulty drop
When the difficulty goes down what happens is the algorithm is easier for the machines to solve resulting in our pool finding more blocks. Basically, a lot of other machines are being unplugged and so the network will adjust giving those who stay plugged in a higher probability to mine more blocks.
This, in turn, will increase our pool payout per share. We have seen the difficulty drop 3 straight times over the last 30 days and it looks like another big drop is coming next week as the price continues to slide.
This signal is actually great news for mining because the price and difficulty should always be in parity. When the price gets low only the efficient operations can continue to mine and we run a very efficient operation so we will continue to reap the rewards as other pools have to unplug.
It really helps that we have a history of mining for over 4 years. A lot of the new mining companies who sprung up in 2017 focused on rapid expansion and poured capital in at ANY COST. These operations are now going belly up and they are the ones unplugging.
Full disclosure, we had to shut down about 20% of our machines that were either older models or in data centers that no longer made sense to run. During the last several months our team has been focused on getting leaner and more efficient and we will continue to do so as the market dictates.
To date, we have only deployed around 60% of what has actually been purchased. The other 40% is basically waiting to be deployed and has been delayed for various reasons (as you know from previous updates).
The silver lining here is that if we had deployed all of the machines on the original schedule under the original agreements then we would likely be in a much worse position scrambling to find efficient locations
As of this month, we have around 1,200 PH running on the pool with another 250 PH that is currently offline and being re-purposed. You will see around 800-900 PH right now because we are upgrading one of the facilities, but the full 1,200 should be showing within the next 10 days.
Then we expect to add another 280 PH before the end of January and another 820 PH remaining on the deployment schedule so far in 2019.
All of this is pending without new purchases, we will be making another large purchase in February when the new generation chips hit the market. (we may even have a very nice surprise to announce at this time, fingers crossed).
We know the mining earnings on our pool payout are very low, historically the lowest they have ever been. The main reason for this is the price of Bitcoin and all cryptos, but the difficulty is now coming down and we are very bullish on a 2019 rebound.
But the good news is even if the price doesn’t rebound we can still be profitable as long as the market acts rationally. The difficulty should continue to drop where only efficient operations will remain and we believe we can mine for a long time with our infrastructure.
So please be patient because the upside in mining could be very big! and even bigger on a price rebound (which we are all banking on)
GPU Mining Update – Still Down
Unfortunately, GPU mining is in serious trouble! There are no profitable coins to mine and with Ethereum being under $100 USD right now there is not a single scenario where turning these machines on makes sense.
Our team is currently working on some other options for the GPU cards and we hope to have an update in the next 90 days with a secondary use for these machines. Our plan is to explore the AI market and repurpose these cards for data mining, however, the biggest challenge is the revenue and profit models won’t be seen for quite a long time in most of the plays we are looking at.
We understand some of you are upset with the GPU pool (especially if you joined within the last few months before it closed) but the bottom line is we just can’t justify turning these machines on with current market conditions so we are on pause until further notice… We will keep you posted!
BC Premier Open to Monster Builders
We made a few improvements to the BC Premier membership product and we are now ready to launch it to all Monster Builders. Once your membership is approved you can begin selling crypto, shopping, booking travel, and using the concierge service however you see fit.
This product is truly a high-value service that you can take full advantage of!
All Monster Builders will have about 10 days to buy the product before we open it up to Master Builders, Pro Builders and finally the rest of the field.
We believe this product will become a cornerstone for everything else we plan to do in the future. After years of searching and trying different options, we finally have a fully integrated crypto to fiat solution. Our next 3 products will take full advantage of this and we can’t wait to begin rolling them out
Rank Monthly Qualifications
Starting January 1st all members will need to qualify for ranks each month based on our monthly volume requirements. These rank qualifications have always existed, however, we have not been enforcing them because our comp plan was still new and growing.
But now that we are mature with over 4 years of volume and millions of records it’s time to activate the monthly ranks so those leaders who are pushing hard will not be blocked by less active legs.
Your position will always be recognized at the highest rank you achieve but you will need to qualify each month to get paid at that rank.
You can see a list of these qualifications on the compensation plan page.
If you have any questions about this please don’t hesitate to open a support ticket and ask our staff.
CoinPay Token Giveaway
We have already given away the maximum amount of CoinPay tokens so we are shutting down the free giveaway on December 31st.
If you are currently holding CP Tokens then you will soon find out about our plan to implement them. We think the tokens have a nice use case and could be very valuable in the future.
We originally planned to launch this last month but we had to put it on the back burner for some pressing issues. Our plan is to make this live sometime in January. Probably closer to the end of the month.
As a reminder, we are converting all ClubCoin tokens over to the Ethereum blockchain where they will become ERC20 tokens. This will allow us to deal with the coins much easier and have the market be more tradable across many exchanges.
We also have a brand new product that we have not announced yet. ClubCoin will play a big role in this new product and we want to roll them both out simultaneously so this was a big reason for the delay on the conversions as well.
Stay tuned for details about this new product we think it could be the biggest money maker of 2019 for BCN members and it ties in perfectly with our strategy.
Recap of 2018
Overall we had another great year in 2018. We are now a 4-year-old company going into our 5th year of business. This year we focused a lot on our backend and admin side processes. We hired 20+ new staff members, we put together a solid management team and legal team, we deployed over 1,000 PH across the world, and we continued to grow our membership strong.
Our website received a new facelift and we migrated our database onto something we could grow with. We also launched some new marketing and social media channels to help support our growing team. We did not have any major hacks or thefts like we’ve seen in the past, and we laid the groundwork for many new products and services to launch in 2019.
We also made some mistakes…
The biggest mistake was underestimating what it took to self deploy so many miners on such a large scale. But we learned a lot from this and if we had taken the easy route and just signed expensive power contracts then we would probably be under water right now.
But we did it our way and decided to build our in-house team to manage new data center deployments and hosting. This saved us millions and put us in control but it also cost us time in getting to market. However, we have a much better process in place to expand in the future and we know the process from A to Z (which is priceless)
We delayed launching CoinPay again this year as our team worked toward a fully integrated and simple turnkey product. We also didn’t feel like the market timing was right to roll this out. However, we think 2019 will be the year for CoinPay so you can expect to see it launch in the first quarter of next year with an army of support behind it.
Right now we are sitting in an incredible position. We have 3 new products in the pipeline that will all be launched in the first half of 2019. Each of these products has massive potential and they are all related to making more crypto! So even if mining continues to stay on the low side of profitable for the entire year we will have plenty of money making opportunities for you to participate in.
Bottom line, we are still here! We are building and thriving through a horrible market downswing and we know if we can make it through a year like this then we have a chance to be a lifelong company offering many products and services in the crypto space.
The foundation is now built! So before you go looking at greener pastures and new startups in the space, just take a step back and realize how far we have come and how much potential we still have over the next 5 years.
Thank you for believing in us and continuing to be amazing leaders, we know you deserve all the credit for BitClub’s success and we will continue to work hard to support all of you.
Happy Holidays and be ready for an incredible year!
-BCN Support Team