Over the past several months we’ve seen a steady decline in GPU mining profitability and we are now in a situation where it doesn’t make sense to keep the machines running at this time.
What does this mean for GPU Mining Shares?
As of October 1st ALL GPU machines have been powered off and we are freezing all mining payments moving forward. This is not a shut down or a cancellation of your contracts, instead we are freezing them as of September 30th and plan to turn them back on at a later date.
Right now based on current market conditions the profit is negative and it looks to continue to go even more negative in the short term on just about all of the coins that we are currently mining. We had the opportunity to hit the pause button and not lose anymore money so we took it.
Our plan is to keep everything powered off and look for opportunities to turn them back on when the market is profitable again. The main reason we did this was because all of these machines have a shelf life of about 4-5 years and we don’t want to burn through them mining at a loss just to keep the pool running.
We also believe this is only temporary and there will be plenty of opportunities to use these machines in the future. So you will not lose anything from this decision because it will stay frozen as of September 30th and you will earn the remaining days once we are able to turn the machines back on.
For example… If you have 620 days remaining on your GPU contract then it will stay frozen at 620 days and when we do find a profitably opportunity to turn the machines back on you will earn for the full 620 days.
No More GPU Shares Available…
We are also closing the GPU pool for all future sales and if you purchased a share within the last 30 days and your mining contract has NOT started paying then you will be entitled to a full refund.
If you have already started mining then you will not be entitled to a refund because your hashing power has been deployed and it’s sitting in a datacenter on a temporary hold.
We did everything we could to avoid this, including reworking power agreements, looking for better facilities and cheaper power but ultimately this is something affecting the entire industry and not just our own mining operations. With the current prices being low and the difficulty continuing to rise it just doesn’t make sense to keep the machines running.
We think market conditions will change in the near future and either the prices will rise, or the difficulty will drop from all the machines being unplugged. In other words the market should correct itself and we will be one of the first ones back online.
We are also looking into other opportunities to use this power for data mining, rendering, or some other components that will make money. Either way we are going to keep a close eye on the market so we can be ready to turn your machines back on and fulfill the contracts. We hope this dip in the market is only temporary and we are optimistic about being able to turn the machines back on soon.
Bitcoin Mining Status
As you have seen Bitcoin mining profits have also taken a big hit. Unfortunately, Bitcoin mining is approaching this same threshold where the profits are becoming very low because of the market conditions.
The mining industry exploded at the start of this year as we saw a lot of new mining operations come online to get their piece of newly minted Bitcoin. This happened when the price of BTC was at record highs and by the time all of these operations got online the difficulty had jumped from 1 trillion at the end of 2017 up to 7.4 trillion where it sits today.
The problem is the price went down from $20k to about $6,500 today and now everyone is feeling the squeeze.
Luckily for us, our Bitcoin mining operations are still profitable and there is no real danger of powering down anytime soon. However, when you look at this on a per share basis for our members it’s not very profitable with today’s numbers and until we can get all of our power online we know the new shares are not looking very attractive.
Keep in mind this happened to us back in late 2014 when the mining was in the same boom situation. Back then the prices were around $600 and it was very thin margins until the market exploded. We are all hoping for that next big run up and we are very well positioned ahead of any other mining operations to ride this back up when it happens.
I think we all know it’s "when" and not "if" but we also hope it comes sooner than later because right now when your in the middle of the down swing it hurts and we know many members are starting to feel that pain..
Sorry we don’t have better news on the mining pool earnings side, however we do have some GREAT news and big updates on new products that we have been working on for a long time now outside of mining that will launch very soon.
BIG Update Coming October 15th
We have many projects that our team has been working on during this past year and we are FINALLY in a position to begin rolling them out.
Rather than list these here we wanted to give you a heads up about a BIG UDPATE coming out on October 15th that will provide a lot of details on each one. For a quick teaser we have 3 new products that we plan to launch this year! This includes our new BC Club, CoinPay with the CP Market Place, and a a huge update/upgrade on ClubCoin that we know everyone will be excited about.
This update will be posted in English, Korean, and Japanese so stay tuned and get your teams ready for a massive opportunity in 2019 and beyond!
BCN Support Growth, Mining Update, and Sneak Peak Views
Included in this update…
Bitcoin Mining Power
Mining Pool Earnings
Sneak Peak Viewing – Level-Up, Binary
Bitcoin Mining Power – We are excited to have 1,400 PH now running stable on our zpool. This puts us back in the top 10 mining pools in the world and we are hooking up more power on a daily basis. Our goal is 2,000 PH within the next 30 days and we will continue to push hard.
Mining Pool Earnings – The mining pool earnings per share are net neutral right now due to the rising difficulty. As we add more power to our pool so does everyone else and right now the difficulty is actually growing faster than we can deploy. This is a very healthy sign for BTC in the long term, but in the short term it can be a bit painful when the price of BTC does not increase with the rising difficulty. Notice the key point there of the price of BTC dropping, because it hurts mining pool earnings due to our costs of power and maintenance. So, now is the time to expand and get ready for the windfall because either the price is going higher or the difficulty will drop as miners will not be proﬁtable and both are wins for us because of our model.
BCN Support – There have been improvements to our support system that has allowed our support team to better assist you and your team in many areas. Those of you writing into support have probably noticed that our response times for this large membership base has increased dramatically and the resolutions to issues are getting completed faster than ever. The area of support we have been focusing most on is the ability to support all our offered languages! This support will only get better and better with the additional programmers and support agents in each language.
Additionally, we have been growing our support team in the areas of legal and compliance to help protect BitClub Network and all that you have built or have started to build. This is really important to the future of BitClub Network and although it is behind the scenes and hard to see from your view as a member, we are very excited about these great improvements that will ensure your positions for the long term!
The support team is working hard, however there are some areas that we will be giving a lot more attention to over the next few weeks that should help with lingering issues that are unable to be resolved quickly. These areas include commissions, withdrawals, and a brand new FAQ page! The commissions will include the releasing or processing of any held commissions and inﬁnity commissions that have been long overdue. Look for the held commissions to update on the accounts and get shown in both BTC and BCH wallet pages soon. The withdrawals for some currencies have had longer delays than anticipated due to our very busy programming team working hard to update the systems in place to pay these out in 72 hours or less. The additional staff and systems implemented to help review and pay out the withdrawals will greatly help with the security and processing of your funds. To help out our team we highly suggest adding our free security feature tool.
Google Authenticator: Having the Google Authenticator active on your account will increase the security on your own account and help with our reviews. If you need assistance with setting this up on your account, please contact our support team to ensure that you are setting it up correctly from the beginning in case you happen to lose/damage your smartphone. If this is not done properly you could be locked out of your own account! Simply, there is a code you need to keep safe, so you can download the app again and easily bring back your security codes.
As you can see the security of your own account is very important to us, but now let’s update you on what is coming soon that is more fun….
Updated visibility on all commissions for all users in your downline
Ability to add screenshots to support tickets from a member side to clearly show any concerns or topics
New features on the Binary and Level-Up pages
Better Enrollment Tree page with easy ways to search members in your downline
Updated view of your mining page with all the repurchases and total shares
Tutorial Videos and new FAQ page to help all members at all levels