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Bitclub announced on Monday 8 October 2018 that it will interrupt the operation of extraction of the GPU, with a poorly constructed declaration distributed to all users. This is the statement as it was received, published here "as is", word by word, that is. [SIC]:
Freezing GPU extraction pool
In recent months we have witnessed a steady decline in GPU profitability and now we are in a situation where it makes no sense to keep the machines running at the moment.
What does this mean for GPU Mining Shares?
Starting on October 1st ALL GPU machines have been turned off and we are freezing all the mining payments going forward. This is not a closure or cancellation of contracts, instead we freeze them from September 30 and we plan to reactivate them later *.
At this time, according to current market conditions, profit is negative and seems to continue to become even more negative in the short term on almost all the currencies we are currently digging. We had the opportunity to press the pause button and not lose more money, so we took it.
Our plan is to keep everything fed and look for opportunities to reactivate them when the market is again profitable. The main reason why we did it was the fact that all these machines last for about 4-5 years and we do not want to burn them, threatening at a loss just to keep the pool running.
We also believe that this is only temporary and that there will be many opportunities to use these machines in the future. So you will not lose anything from this decision, because it will remain blocked on September 30th and you will earn the remaining days once we are able to re-start the machines.
For example … If you still have 620 days on your GPU contract, it will remain frozen at 620 days and when we find an advantageous opportunity to re-start the machines, you will earn for all 620 days.
No more GPU shares available …
We are also closing the GPU pool for all future sales and if you have purchased a share in the last 30 days and your mining contract has NOT started to pay, you will be entitled to a full refund.
If you've already started mining, you will not be eligible for a refund because your hashing feed has been distributed and is in a datacenter on a temporary outlet.
We have done everything possible to avoid it, including energy reprocessing agreements, looking for better structures and cheaper energy, but in the end it is about the whole industry and not just our mining operations. With the current low prices and the difficulty to keep going up, it makes no sense to keep the machines running.
Future perspective …
We believe that the market conditions will change in the near future and that prices will increase or that the difficulty will come down from all the machines that are disconnected. In other words, the market should correct itself and we will be one of the first to get 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. In any case, we will keep an eye on the market so that we can be ready to reignite the machines and to fulfill the contracts. We hope this decline in the market is only temporary and we are optimistic about the possibility of restarting the machines soon.
Bitcoin mining status
As you have seen, Bitcoin's mining profits have also been very successful. Unfortunately, Bitcoin mining is approaching this same threshold where profits are becoming very low due to market conditions.
The mining industry exploded at the start of this year, when we saw a lot of new online mining operations to get their piece of Bitcoin coined recently. This happened when the price of BTC was at historic highs and when all these operations were carried out online, the difficulty had risen from 1 trillion to the end of 2017 to $ 7.4 trillion where it is today.
The problem is that the price has dropped from $ 20k to about $ 6,500 today and now everyone feels squeezed.
Fortunately for us, our Bitcoin mining operations are still profitable and there is no real danger of shutdown at any time. *** However, when we look at this by base for action for our members it is not very profitable with today's numbers and until we can get all our power online, we know that new actions do not seem very attractive.
Keep in mind that this happened to us at the end of 2014, when the mining was in the same boom situation. In those days the prices were around $ 600 and were very thin margins until the market exploded. We all hope that the next big run and we are very well positioned before any other mining operation to make this backup when it happens.
I think we all know it's "when" and not "if", but we also hope it comes as soon as possible because right now when your **** in the middle of the swing hurts and we know that many members begin to feel that pain .. .
Sorry if we do not have better news on the revenue side of the mining pool, however we have some BIG news and great updates on new products that we have been working on for a long time outside the mining sector that will be launched very soon. ** ***
GREAT update coming on October 15th
We have many projects that our team has been working on over the past year and we are FINALLY able to start launching them.
Rather than listing them here, we wanted to give you an idea of a BIG UDPATE ****** coming out on October 15th which will provide many details about 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 huge update / update on ClubCoin that we all know will be thrilled.
This update will be published in English, Korean and Japanese so stay tuned and prepare your teams for a great opportunity in 2019 and beyond!
DECLARATION TERMS
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This was a statement distributed by the Bitclub network to their users on Monday 8 October 2018. And it is published "as is", as it was received. Here are some screenshots of the notification:
Some comments from the SA Crypto team on the statement:
* This is not guaranteed to happen.
** Spelling error. It should read: "profitable"
*** This entire paragraph is confusing. The statement states that the extraction with GPU is not at all profitable, and indeed it is providing "negative returns", and yet this sentence clearly states that there is "no real danger" for the extraction of Bitcoin which undergoes the same destiny. How can this be guaranteed if the GPU extraction has just given in to the danger?
The next sentence seems to imply that the future mining of Bitcoin is not however very attractive. If this sentence still refers to the extraction of GPUs, then it is once again a poor construction of the paragraph, but if we refer to Bitcoin mining, then the previous sentence is essentially canceled.
**** Spelling error. You should read: "you are"
***** This is an interesting development and seems to be the same path of similar multilevel marketing schemes that diversify their "product offering" outside the cryptoasset mining sector in order to keep the flow of consumer investments, and therefore maintain the regime supported.
****** Spelling error. You should read: "UPDATE"
