As time goes by and BitClub Network becomes yesterday's news for the MLM pumpers, my suspicion that the operation was only ever a Genesis Mining reseller becomes almost a certainty.
Building on this
Genesis Mining publicly claim to have an Icelandic mining farm, amongst others. Both Genesis and BCN reference the Verne Global setup.
Genesis Mining give no details of their mining pools.
Genesis Mining, since Spondoolies bit the dust, give no details of what mining equipment they use.
Genesis Mining are getting heavy criticism for reducing cloudmining payments to dust
Genesis get lots of stick on here about declining payments and Bitclub's ROI also just stretches further and further, as evidenced by users
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.
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.
To add further
Genesis has a contract cancellation clause allowing termination if maintenance charge exceeds mining income.
BitClub Network are more basic, they just cancel oversold contracts.
Then of course, there's Ethereum mining, started by Genesis at the end of 2015 and, three months later, BitClub offering ETH packages with MLM attached.
And further then, there's the Curious Case of the Super Arbitrage Bot. This of course was openly sold (not sold in the end) as an official BitClub Network/Genesis Mining joint venture, as explained above. Something happened. All of a sudden bullshit excuses from BCN about them being TOO big to operate it properly or smth. Whether or not Genesis are still using this bot on their own account, supposedly have been for three years, is something only they can answer. GLWT.
And the latest coincidence/evidence that BCN are just a Genesis reseller is ZCash mining, Genesis' latest baby. Right up behind them come Bitclub, Zcash mining
"What does it matter," you ask?
"Obviously makes your view that Bitclub are unsustainable look unlikely. If they're "backed" by Genesis, the biggest cloudminer in the world according to themselves, my money should be safe amirite?"
Well no, not really.
Firstly there's no guarantee that Genesis are bomb or market proof. In a mining arms race like we have now, only the biggest will survive and it's unlikely Genesis qualify there. Although if they are using Bitfury gear, their belated announcement that they're finally gearing up with 16nm will at least make Weeks' claims come true, albeit over six months too late.
If Genesis are paying dust to direct contract holders, what chance do investors in a reseller have of making any money, especially when the sales force of that reseller are hiving off probably a third of all new money for themselves, as "commission"?
And what a temptation it must be to keep selling and selling, irrespective if there's nothing profitable left to sell?
That what they do, welcome to MLM.