I’ve been in BCN for nine months and I’ve now been paid just over 5 BitCoin in mining earnings:
5.01670 BTC = $3,341 at todays value.
Part of that has been automatically re-invested back into BCN so that I now hold 1.45 shares in Pool 1, 1.36 shares in Pool 2 and 1.3 shares in Pool 3.
This is a totally passive income too. You simply invest in the mining pool and you receive a share payout every single day based on the number of BitCoin that has been mined by the pool over the previous 10 days.
The automatic partial share purchase also means that your shares in BCN grow larger the longer you stay in.
Investors also receive an amount of ClubCoin, BCN’s own crypto-currency, just for investing, and many members have recovered their total investment already simply by selling the free ClubCoin they were given. I chose to keep my ClubCoin and grow it over 12 months in their ClubCoin pool so that I’ll have 20% more by January 2017. I’ll have a look at ClubCoin value then and make a decision whether to sell some to recover my initial investment too, in which case all the BitCoin I’ve earned to date will be pure profit, and will continue to pay out every day indefinitely.
BCN released an update in the members area on 8th July where they talk about the upcoming (now arrived!) halving of the block reward.
The halving actually happened on Saturday evening, so I will be watching what happens next with a keen interest.
I’ve pasted most of the update below:
Bitcoin Mining Pool
We know the mining pool earnings have been a little low over the past 30 days or so. This is due to many factors that include an increase in the total shares of the pool, rising difficulty to mine, and other market conditions including mining equipment turnover.
As we have always said, buying mining equipment is not just about purchasing hardware and plugging it in. It’s about knowing the timing of the market and how to turnover the older models for the newer ones. It’s about taking advantage of wholesale pricing and purchasing in bulk, and most importantly it’s about securing the newest technology to be the most efficient.
With that said, we are getting ready to boost the pool in a big way. We have 10 PH coming online from Bitmain, they just came out with their new 16nm chips in their newest S9 Antiminer rigs. These machines are now the most efficient on the planet and we have secured a large chunk of the first batch!
With the halving coming up it was very important that we got rid of some of our older models. This included all remaining S5 Antminers and even a portion of our S7 Antminers are being turned over so that we can focus on the S9 expansion.
We believe the S9 is at the peak of the market. The efficiency will not get much better from here and these machines are built to mine for life, so you will see many updates as we expand aggressively with this model and plan to hash with them forever.
Also, we have another 14 PH coming online from BitFury that will begin starting next week July 13th and will come in batches from there until Aug 24th.
This is 24 PH in addition to the 48 PH we currently have in our pool. We already have scheduled purchases during the next few months that will come online near the end of Aug or early September. Our goal is to be at 80 PH by September and fully running on 16nm technology exclusively!
Our pool is about to get a big profit boost too because each new PH we are adding cost a lot less than the ones we are taking offline.
Just to give you a quick sample of this… We pay about $21,000/month for 1 PH of the S5’s and the S9 model 1 PH is about $6,800/month. This profit is passed to the pool!
The “Halving” is only 1 day away… Our Thoughts!
You are probably well aware of the upcoming halving that is about to happen after the next 140 blocks. If you are not familiar with this, all you need to know is the reward for miners will drop from 25 Bitcoin to 12.5 Bitcoin.
We believe this is going to put a lot of miners out business within a very short time. Anyone running older models will have to unplug or run at a loss and we will likely see huge volatility in the bitcoin price and the difficulty as the market adjusts.
For mining operations that are focusing on efficiency and long term profits like ours it could be great news in the long-run and allow us to be even more profitable. In the short term we believe the market will be wild and crazy and we are buckling up for the ride.
It’s like that the market will over react to just about everything as it happens and miners will constantly be going online and offline watching as the next difficulty numbers become available.
Keep in mind this already happened before… When Bitcoin was cut in half from 50 Bitcoin down to 25 Bitcoin the market was very volatile for about 3 months after as people tried to figure it out.
We believe this will happen again but since the market is much larger the volatility could be less and when the dust finally settles after a few months the price will be higher, the mining more efficient and the network better off!
NOTE: This is just an opinion of ours and nobody knows what will happen, our strategy is to expand the pool and get more efficient so at the end of the day our mining contracts will pay back more Bitcoin than they cost and each member will be better off by participating in our mining pools. We will keep you posted with market news and what you can expect.
This all starts in about 24 hours and is a very big deal in the market so make sure you pay attention!
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