Bitclub mlm scam?

[Dracule]

Hey,

yesterday I've meet someone who went to school with me a few years ago. He told me he found something really "nice" called Bitclub Network. He felt for the Vemma thing before and somehow went straight on to the next mlm company who claims to easily generate you passive income. They're asking you to invest into their bitcoin mining network. Here's their "offer"

Mining Pool #1 -- -- Each share cost $500 USD that will be used to purchase new Bitcoin mining servers. All Bitcoin earned will be split among all members of this pool and paid out daily. Each share earns 50% profit with the other 50% being used to fund the mining operation and to purchase additional mining shares.


Mining Pool #2 -- Each share cost $1,000 USD and just like Pool #1 the total Bitcoin earned will be split among all members in the pool and paid out. Each share earns 60% profit with the other 40% being used to fund the mining operation and to purchase additional mining shares.


Mining Pool #3 -- Each share cost $2,000 USD and the total Bitcoin earned will be split among all members in the pool and paid out. Each share earns 70% profit with the other 30% being used to fund the mining operation and to purchase additional mining shares.


Example: Using Mine #1, if the total Bitcoin mined for the day = 1 BTC and there are 100 shares outstanding then each share would earn .01 BTC. From this total 50% of it would be paid directly to member as profit (.005 BTC) and the other 50% (.005 BTC) would be used to fund the mining operation costs and to purchase additional shares.


So if the value of 1 Bitcoin = $500 USD and you have 1 share then you would earn $5 USD (.01 BTC) of which $2.50 is paid to you and $2.50 is used to purchase an additional share on your behalf. In this case you would purchase an additional .005 shares with your $2.50 and you would have a total of 1.005 shares going into the next day that you are now earning on.


IMPORTANT: Each full share purchased will last for 1,000 days. The reason we set this to 1,000 days is due to to the constant increase in calculations and computing power required as the math gets harder and harder to mine Bitcoin (or other Crypto Currency). Therefore, we have identified this 1,000 day window as an ideal time frame based on how the market is today and this maybe subject to change on future partial shares repurchases.

You also have to pay 99 $ entrance fee before you can even start investing. If you convince a friend a to join you get 18% of his investment as provision.

This sounds fishy as hell to me. If their method is so good, why do they use a mlm marketing system which targets inexperienced young people?

I already tried to convince my buddy that making money is not that easy and this system is most likely a scam. But he says he already got the 500 €, he invested earlier, back and is totally convinced by this system. He wants to put more money into it now

What do you think of this whole thing? Why are people so ignorant and fade out some obvious things?

 

[jazzc]

What do you think of this whole thing? Why are people so ignorant and fade out some obvious things?

C'mon, admit it, greed almost got you and you want to "invest"

 

[Dracule]

C'mon, admit it, greed almost got you and you want to "invest"

Ok you got me. No seriously I'm writing this because my bud is thinking about "investing" another 3000 $ and he's inconvincable that this whole thing is shady as fck. But maybe that's the price for learning that no one is gonna give you some easy money.

 

[myopic1]

I love a good Ponzi scheme, the 1000 day no withdrawal is a nice touch but maybe that's too generous here, Ponzi schemes actually pay out if you're one of the first in and aren't greedy. It's the entrance fee and the time frame that really tells me that something is a little off, why the need to make a profit on participation when it's such a fool proof money making scheme?

In my opinion the bitcoin mining is going to be incidental, it's just a sufficiently complicated vehicle to gain money from a mark...call me cynical.

There are also variables out of your control that are a massive risk waiting to swallow you up if this is legit:

1. The gaining of new investors needs to be at a rate that produces sufficient capitol in order to purchase equipment that produces Bitcoins at a greater rate than the hash rate difficulty increase.
2. A reliable supply of sufficiently powerful equipment needs to be found.
3. The ability to run the infrastructure - e.g storage, electricity supply, cooling and keep up with the required bills.
4. You don't know how the hash rate will increase.
5. The owners themselves, are they reliable? Competent? Capable of running an intricate operation like this?

That's a lot of risk for not a lot of upside, stick to index funds and compound interest

 

[baddie]

I love a good Ponzi scheme, the 1000 day no withdrawal is a nice touch but maybe that's too generous here, Ponzi schemes actually pay out if you're one of the first in and aren't greedy. It's the entrance fee and the time frame that really tells me that something is a little off, why the need to make a profit on participation when it's such a fool proof money making scheme?

In my opinion the bitcoin mining is going to be incidental, it's just a sufficiently complicated vehicle to gain money from a mark...call me cynical.

There are also variables out of your control that are a massive risk waiting to swallow you up if this is legit:

1. The gaining of new investors needs to be at a rate that produces sufficient capitol in order to purchase equipment that produces Bitcoins at a greater rate than the hash rate difficulty increase.
2. A reliable supply of sufficiently powerful equipment needs to be found.
3. The ability to run the infrastructure - e.g storage, electricity supply, cooling and keep up with the required bills.
4. You don't know how the hash rate will increase.
5. The owners themselves, are they reliable? Competent? Capable of running an intricate operation like this?

That's a lot of risk for not a lot of upside, stick to index funds and compound interest

That's discounting the actual physical security concerns too. You can't insure bitcoin, once it's stolen it's stolen. If you can physically get on site, bitcoins are easier to steal than cash.
This is totally different from a bank.

Bank: "We're not here for your money, we're here for the bank's money. Your money is ensured by the fereral gov't."
Bitcoin: "LOL, you're poor now!"

 

[Dilettante]

Hey,

yesterday I've meet someone who went to school with me a few years ago. He told me he found something really "nice" called Bitclub Network. He felt for the Vemma thing before and somehow went straight on to the next mlm company who claims to easily generate you passive income. They're asking you to invest into their bitcoin mining network. Here's their "offer"


You also have to pay 99 $ entrance fee before you can even start investing. If you convince a friend a to join you get 18% of his investment as provision.

This sounds fishy as hell to me. If their method is so good, why do they use a mlm marketing system which targets inexperienced young people?

I already tried to convince my buddy that making money is not that easy and this system is most likely a scam. But he says he already got the 500 ?, he invested earlier, back and is totally convinced by this system. He wants to put more money into it now

What do you think of this whole thing? Why are people so ignorant and fade out some obvious things?

Warning: big fucking scam.