One email a day, 7 Days in a row. Disclaimer: From time to time I get contacted by various people regarding this article supplying more how Is Investing In 360 Blockhain for either sides of this story. Each time such evidence arrises you will see it posted here as an update. Everything I bring in this post is my own research done online and my personal opinion. August 15th 2016 update: Since this post was published I was contacted by Joby Weeks. After gathering the facts I can’t prove that Bitclub network is a scam beyond a shadow of a doubt.
I do however still think that Bitclub Network’s business model is lacking and wouldn’t invest in it personally. I believe the video speaks for itself when I say it’s 5 minutes of total gibberish that doesn’t give any value to its viewers. I can safely say that the person on this video doesn’t really know what Bitcoin is and is just reading his text from a page. You can also generate revenue by referring others to join BCN. Usually there’s no actual product or service that the money is being invested in.
So basically the new members of a Ponzi scheme finance the payouts for the old members. This goes on until no more new members come on board, the money runs out and the operation shuts down leaving a lot of people shocked because they didn’t get their money back. So the operator may actually buy mining equipment to generate income, in this case the money you and other members paid when you joined is like some sort of a crowdfunding campaign. Another option could be that they are getting money to pay their members from new people joining down the line in order to finance the older members like yourself.
This is where referrals come into play. 10 commission and more money will flow into the system to pay the members. Of course the new members are then motivated to bring more members on board. Why is it so important that everyone will bring in referrals? Because in most cases that’s the most consistent source of income for this scheme.
And even if the money is invested in some legit operation it’s not consistent enough to cover the payments for all of the members. Usually members joining these types of operations expect a consistent positive return or they will leave. Another way to make the Ponzi scheme survive and not run out of money, is getting the investors to re-invest their money back into the operation instead of withdrawing it. This way the members think they own the money because they see their account balance, but in reality there’s no way they will be able to withdraw that money into their own bank account. The first thing I did was to see who is the registrant for the domain Bitclubnetwrok. However, the domain is under private registration which is a red flag in my opinion.