Included in this update…
Bitcoin Mining Earnings (temporary dip)
Ethereum/GPU Mining Adjustments
Bitcoin Mining Earnings – Temporary Dip
You may have noticed the recent dip in our daily mining earnings. Unfortunately, these numbers are accurate but they are only temporary.
Over the past 30-60 days, BitClub Network has been growing faster than any time in our history. This is a great thing, however, it’s also been the longest stretch we have gone without adding additional power to our pool and the result has been a big dip in the payments per share.
The reason is simple… We recently structured a long-term deal for ramping up our power and during this time frame, we saw a huge influx of new shares.
The result is one of our lowest 10 days stretches in history that started a few days ago. But the good news is we have 60 PH coming online in 5 days from now, plus another 50 PH coming online May 16th and then another 40 PH coming online June 7th. All of this power was paid for months ago as part of the biggest deal we have ever done with BitFury.
Also, we have an additional 20 PH coming online sometime in May from Bitmain and another 20-30 PH in June (assuming we don’t make any additional purchases as it could be more).
This means the combined total power will be an additional 200 PH added from April 19th through June and this will put our pool above 330 PH total!!
So please don’t panic… We just got caught up in a small dip because of the large scale deal we made and we will make it up quickly.
One thing you will always get from us is honest numbers. It may not be great news at times but we ONLY pay what we are actually mining and we will never put the company in jeopardy by paying out more just to keep you “happy”
We see competitors doing this all the time and it’s very easy to see they are just lying and paying out ridiculous returns that are not sustainable.
Our mission is to stay on track and build long-term sustainable mining solutions that will pay for many years to come. We are also leveraging our membership in many ways beyond mining to help you really cash-in on this digital currency boom.
So be patient because you will see a huge boost when our new power comes online.
Ethereum/GPU Mining Adjustments
With the addition of 10,000 new shares that will begin paying tomorrow, we did a full audit of our Ethereum payments and found we were paying out way too much.
There were a few reasons for this over payment…
First, we had a majority of our shares mining Zcash when we launched the Zcash pool back in October. During this time we constantly had to adjust the earnings per share because we kept finding new improvements in the hashing algorithm that would increase the efficiency of each GPU.
You may recall we kept doing adjustments and doing audits to pay more as we improved the algorithm. You can even go back to some of our updates below to see these announcements. Our main focus was on Zcash and optimizing this pool until Ethereum exploded in price going from around $12 USD up to $50 USD almost overnight.
When this happened we saw thousands of shares moving from ZEC to ETH and this meant manually having to switch and reboot machines to mine Ethereum. At the same time, the overall hashing power on the Ethereum mining network jumped from around 8 TH/s up to around 18 TH/s.
This is more than doubling the difficulty in ETH and we did not properly adjust for this and allocate the shares correctly.
So the end result was a large overpayment for about 30-45 days. Recently, we ran a full audit on our numbers and we have adjusted the payout to what is actually being mined with our power.
The good news… WE ARE NOT going to claw-back any of this overpayment because it was our mistake and we are going to allow you to be paid around 3-4 times more during this stretch, you can keep it all.
Starting today you will see accurate numbers and the new 10,000 shares will begin paying the correct amount. We will also keep a much closer eye on this growing network and make adjustments as needed.
Error #2… After we sold the new batch of 10,000 shares we found a bug where some members were being paid on the new shares before the power was ever hooked in. This also affected existing shares due to the way we allocated them in the system.
Basically from April 1st – April 12th all of the new ETH shares had to be clawed back and this was done yesterday with a notice on the ETH Wallet page.
So to recap, if you are seeing an adjustment on your ETH wallet it’s only from the April 1 – April 12th time frame that we clawed this back, but we still paid you on each share 3-4 times more than normal, so the only thing clawed back was from new shares purchased in this latest round.
We wanted to clarify this and also remind you that we do make mistakes from time to time and these mistakes will usually be fixed by an audit.
This is how REAL MINING works, we are not cloud mining or paying you on “theoretical numbers” we are actually mining with real hardware and we are constantly trying to improve the ROI and efficiency of our operations to make you more money.
Hopefully, this makes sense, and just know that we will ALWAYS try and do the right thing on behalf of all members so that you understand what is going on and why.
We appreciate all your support as we continue to execute our business model in a fair and accurate way.