Is BitClub Network A Scam? I’m 90% Sure It’s A Ponzi Scheme Too!
Welcome to my BitClub Network review!
If someone ever told you that you could get rich if you invested a lot of money in a mining pool, they're probably both right and wrong.
But that would depend on the mining pool too.
If you got invited into BitClub Network's mining pool, well, I have some bad news for you.
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
Let me be completely transparent with you, I'm not associated with BitClub Network in any form.
So, rest assured that I'm not here to pitch or sell anything to you.
Instead, I'm here to reveal why this program has all the makings of a Ponzi scheme.
Is BitClub Network a scam?
It probably is, but read on just to be sure.
BitClub Review Summary
Product Name: BitClub Network
Founder: Russ Medlin, Joe Abel, and Joby Weeks
Product Type: Cryptocurrency - Bitcoin Mining Pool
Price: $99 Membership Fee + Options For Mining Pool ($500 to $2000)
Best For: No one. Everyone should avoid this at all costs!
Summary: BitClub Network is a Bitcoin mining pool run by different (and shady) characters, and operates on what I can assume to be a Ponzi scheme. There's just nothing good to report about this program, and I would advise everyone to avoid this like the plague. Why? Because on top of their shady founders, they even got caught red-handed by a government for operating a Ponzi scheme and are now banned from operating in that country (Read on to find out which country it is). That's more than enough for anyone to just turn their heads and look for other means of earning money online.
What is BitClub Network?
BitClub Network is a cryptocurrency-mining company with a keen focus on Bitcoin and was founded on 2014.
Upholding the philosophy of blockchain technology, BitClub Network is not owned by a single entity or company.
Rather, it’s a group of entrepreneurs, professionals, crypto experts, programmers, and network marketers who aim to launch a business in this very complicated industry.
With that said, not much is known about who the actual founders of the company are. But there were some names that came up during my research and I believe them to be the co-founders:
- Co-Founder Russ Medlin
- Co-Founder Joe Abel
- Co-Founder Joby Weeks
Now these people, however, have a long history in promoting MLM or multi-level marketing schemes. I think that these are not Bitcoin experts that they claim to be.
Rather, they’re expert recruiters.
To make the company more enigmatic, no address is provided on where the company is located nor any trace of information on the experts involved in running the BitClub Network.
The more I read and write this review, the more suspicious I become.
But the co-founders are trying their hardest in building their company’s legitimacy.
I mean, check out this video of Joe and Russ talking about BitClub’s mining equipment.
Inside BitClub Network
You may have read about Bitcoin on your social media feeds or may have heard about it on the news over the last few months.
Why shouldn’t you? Cryptocurrency turned into a billion-dollar industry this year, with Bitcoin spearheading the way for other cryptocurrencies to get into the market.
But you may have also heard about how Bitcoin’s value crashed over the last few weeks, with its lowest being reported just last week.
BitClub Network is a company that mines Bitcoins specifically, and through the investments made by their members, they are able to purchase mining equipment.
And we’re not talking about trucks either.
We’re talking about high-powered mining rigs or computers.
These are designed to do one thing, and that is to mine for Bitcoin (or other cryptocurrencies).
What Is The Bitclub Opportunity?
In a nutshell, you’re trying to get into their Network by investing X amount of dollars (for reasons unbeknownst to all of the members) in the hopes of getting a huge ROI or return on investment.
BitClub Network is a mining poll and offers profitable opportunities for members to join in.
Because it operates on a referral system (uh-oh!), the program makes it easy for members to work together and invest the freshly-mined Bitcoin back into the network.
So, you invest, you recruit people, and then you get money in more ways than one.
According to them, BitClub has a unique mining software that’s exclusive to the company and allows them to mine multiple cryptocurrencies and convert them into Bitcoin on the same day.
This allows the company to earn profits while minimizing costs and diversifying their portfolio.
The software they are talking about is in this video, and it is revolutionary (to some extent):
The Recruitment Scheme
When you combine the word Bitcoin with recruiting, things start to become immediately suspect, to the point that it almost becomes illegal.
You see, Bitcoin is unregulated currency and no government in the world is controlling it, so it gives people a lot of freedom to do what they want to do.
As a result, we often hear and read about scams and Ponzi schemes coming to the surface.
To briefly define what a Ponzi scheme is, a company relies on investments made by members coming into the scheme to pay off people who are already on the scheme.
It’s an unsustainable business model and people eventually lose money (except for those at the top). This is why it’s illegal.
In order for a company to be classified as a Ponzi scheme, it needs to meet two IMPORTANT criteria:
- No physical product or output to show for
- Relies heavily on recruitment for income
And BitClub Network just so happens to meet these two criteria.
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How Do You Make Money With BitClub Network?
In order to make money from BitClub Network, they only provide you with one way of earning income.
And that is through RECRUITMENT.
But like most investment opportunities out there, you may have heard about BitClub Network via:
- Word-of-mouth marketing
- Social media marketing
Someone probably close to you, like a family member or a friend, told you about getting an early investment on Bitcoin and you were probably curious.
That’s why you’re reading this article.
How To Get Started With BitClub Network?
To become a member, you need to pay a one-time fee of $99.
Then you can choose between one of these mining pools to invest on
Bitcoin Pool #1 ($500) — Each share is worth $500 worth of Bitcoin and pays out daily. Shares get you 50% of whatever is mind and 50% is used to pay for expenses and additional mining shares.
Bitcoin Pool #2 ($1000)— Same as Pool #1 except for each share cost $1,000 worth of Bitcoin and pays you 60% of whatever is mined and takes the other 40% to pay for expenses and additional mining shares.
Bitcoin Pool #3 ($2000) — Same as Pool #1 except for each share cost $2,000 worth of Bitcoin and pays you 70% of whatever is mined and takes the other 30% to pay for expenses and additional mining shares.
These shares are valid for 2,000 days and will begin paying 30 days after purchase.
Each day you earn a percentage of Bitcoin mined, and will be available for withdrawal. But a percentage of your earnings will be used for maintenance and equipment purchases.
BitClub Network Compensation Plan
BitClub Network follows a binary structure for its compensation plan.
The way it works is that you recruit for two legs, namely your right and left leg. You get to distribute your recruits on which leg they go to.
Their model reminds me of another MLM-based cryptocurrency called iCoinPro.
Placement of the recruits matter because it affects the way you’ll earn the following bonuses:
1. Binary Team Cycle Bonus
When members sign up for the $99 worth of Bitcoi, you get a position in the structure. This position is not active until you purchase a minimum of 1 share in their mining pool.
You can enroll new members once you’re active and you introduce them to the network.
This allows you to meet the following binary commissions:
- For every $500 full share sold in your binary tree you will receive 3 Credits
- For every $1,000 full share sold you will receive 6 Credits
- For every $2,000 full share sold you will receive 12 Credits
When you have 15 credits on your left and right cycle, you get 1 Cycle.
1 Cycle equates to $200 worth of Bitcoin.
All sales also count towards your total binary volume.
2. Binary Matching Bonus
For each $200 cycle paid, there is another $80 paid to the upline through a maximum of 8 levels.
You don’t need to qualify for the first level because all members are signed up with the rank of Miner.
To earn on level 2 matches, you need to qualify for the rank of Builder, and so on and so forth if you want to increase your bonus.
I won’t talk about their compensation plan in great detail. So I’ll let this video do all of the talking:
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Who's BitClub Network For?
At this point, I am supposed to say that a program is for this group people and not for this group of people.
Honestly, BitClub Network is not meant for ANYONE at this point in time, and I will explain in the next few sections.
BitClub Ugly Truths Revealed!
#1 - Founders And Owners Hide Their Identity
Not much is known about the other founders of BitClub Network, which is a red flag for me because it’s a possible indicator of a Ponzi scheme.
The reason why is because when you don’t have info on founders, there’s no one to blame or go after. There's no accountability if something was to go wrong.
One similar story here of an actual cryptocurrency program that turned out to be a Ponzi scheme is BitConnect.
No one really knew who were running the scheme because they were hiding. This is what’s happening with BitClub Network.
Medlin, Abel, and Weeks may just be the face of the program because they’re at the very top of the scheme.
#2 - Criminals May Be Running BCN
The people over at Steemit was able to dig up information on one of the people running BCN: Russ Medlin.
He said that Medlin is a known sex-offender and claimed that the people behind the company is a group of international gang of criminals.
The writer also believes that Medlin is a founder of the company.
With that said, I had to double-check his claim because I want to see it with my own eyes.
I went over to the Department Of Justice Webpage, specifically where you can search convicted sexual offenders.
And I couldn't believe my eyes with what I saw...
Note that you only get on that registry if you're a convicted sex offender and if you agreed to be a part of this registry as part of your conviction.
If that’s the case, are you willing to be associated with a company that’s run by criminals?
#3 - BitClub Network Is An Investment Program
Contrary to what you’ve been told, BitClub Network is nothing more than a high-yield investment program or HYIP.
Everyone interested in investing in Bitcoin will find out that the investment part is just the FRONT of the scheme.
Think about it.
You’re paying $99 to get into the program, but you have to invest in one of their packages, which is about $500 at the minimum.
These digital currency schemes always give a 1000-day window on your earnings.
They do this because they need to stall the earning process before things get out of control or before they caught.
This basically gives them enough time to cancel their early investor contracts before it actually matures.
To which the latter is what happened to BitClub Network.
#4 - BitClub Network Was BANNED In The USA
If there’s one thing to take away here is that BitClub Network no longer operates in the USA because they got caught.
This also prompted the Securities And Exchange Commission to investigate the company, which led them to shut down in the USA in May 2018.
Residents in the USA can't even view their website anymore also, so they're far from harm.
But what about the rest of the countries?
#5 - The Money Is As Good As Gone
If BitClub Network was a legitimate program where people actually made money, it’d be all over the Internet.
But it isn’t.
Your investments are only valid for 600 days, and it’ll be gone (most likely into another founders’ pockets).
Your earnings are forced to be reinvested to refinance the mining operation, which is another indicator of a Ponzi Scheme.
Their lack of transparency is also dubious because they claim that the participants have a stake in the mining hardware used, but the members are not even given the following information:
- What mining rig or equipment was purchased?
- Where their equipment is bought?
- Which person or company they are paying to?
All because BCN claims that this is due to “legal issues”.
On top of that, there's no trace of ANYONE claiming they made money off their mining pool.
Let alone an income disclosure statement couldn't be found anywhere online or on paper.
I find that highly suspect.
What I Like About BitClub Network?
There’s nothing positive worth mentioning about BitClub Network simply because all of my instincts tell me that it’s a Ponzi Scheme.
All of the negative issues that I pointed out contradicted what little saving grace this program ever had.
Is BitClub Network A Scam?
From what I’ve written and what I’ve read from other sources, it’s safe for me to assume that BitClub Network is a scam. More importantly, the makings of a Ponzi scheme.
The fact that your main source of income was to recruit people without having to sell any physical product or service is alone for me to assume that it’s a scheme of sorts.
And the fact that it’s been caught red-handed by government authorities in the USA means that this program is anything but legitimate.
Let me even say that your investment was totally 100% unprotected because of how they created their compensation scheme.
I mean, a percentage of your ROI going back into maintenance and equipment? That’s not even how ROI’s are supposed to work in the first place. Why do you think it even says RETURN ON INVESTMENT?
There’s just a lot of red flags with this program, and I would advise every reader out there to just avoid this one.
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