FAQs

Frequently Asked Questions

What are the tax implications of monies earned from a bitcoin mining share?

If you convert your bitcoin into South African rand and deposit rands into your South African bank account, you will in all likelihood need to pay tax on it as it will be regarded as income.

This said, it’s best to be advised by your accountant or tax practitioner.

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What happens after the 2 000 days of my GPU mining contract?

Once your 2 000 days of mining have elapsed, your share will expire and your earnings will be paid to you. Unlike in our bitcoin mining pools, no new mining shares are created.

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Is there a limit to the number of mining shares I can hold.

There is no limit.

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So, I buy a mining share and it keeps on mining for me?

Correct, yes.

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What happens after the 1 000 days of my bitcoin mining contract?

Once your 1 000 days of mining have elapsed, your one share will in all likelihood have grown to two or even three shares. Your original mining share will expire and your second and third shares will carry on mining for a further 1 000 days.’

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What happens to my mining share(s) when I die?

So long as a family member, or a next of kin, has you log-in details, they could take over your mining share. The family member taking over of your account(s) should just advise Support.

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Where could I spend my bitcoin?

In South Africa, there are a number of places where you can spend bitcoin. These include Takealot.com and BidorBuy. In the US and Japan, a great many outlets accept bitcoin. In time, you’ll be able to purchase practically anything using bitcoin. From a coffee at Starbucks to an airline ticket to Cape Town. BitClub Network will soon be bringing out a debit card which will allow you to load bitcoin onto the card and use the card for purchases from Woolworths, Pick n Pay, Edgars, wherever you want. You will also be able to use the card at an ATM machine and withdraw cash in the currency of the country.

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Can I withdraw my bitcoin if need be?

Yes you can. If you have bitcoin in your bitcoin wallet, you can withdraw whenever it suits you – although our recommendation is that you don’t withdraw within the first 12 months of your investment.

Typically it takes up to 24 hours for your withdrawal to take effect but it could be sooner than 24 hours.

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Would I need to mine bitcoin myself?

No. We do the mining on your behalf though our bitcoin mining facility in Rekjavik, Iceland. You’re not required to know anything about the mining process, although it might be a good idea for you to have a basic understanding in time.

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Do I have to “recruit” people to earn through BitClub Network?

You do not. Whilst there is a network marketing component to BitClub Network, it is up to you whether you’d like to introduce others. You could simply purchase a mining share in one of our mining pools and earn from your daily mining activity and the increase in the bitcoin price as it rises. Sure, you’d earn more by bringing your friends and colleagues into Bitclub Network, so you can profit from their mining activity (and through something called “cycling”), but that would be your choice. No-one will force you to recruit – although you’d probably want to tell others after seeing how easy it is to make money.

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If I want to join BitClub Network, but need help doing so, is there anyone to help me?

So long as you’ve already bought your bitcoin, or have the money to buy bitcoin, yes, we could arrange to meet with you to help you buy a position and a share in a mining pool. Obviously this would depend on where you are. If you are in Johannesburg or Midrand in South Africa, we could certainly arrange to meet. If you are further afield, we could take you through the process telephonically, or via skype or whatsapp.

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How do I set up a bitcoin wallet?

Setting up a bitcoin wallet is a simple process, but if you need help in this regard, you’re welcome to email Derek on earn@bitclubnetwork.co.za

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Where can I buy bitcoin?

There are a number of platforms through which to buy bitcoin online, although our recommendation – if you live in South Africa – is www.luno.com

If you live in Zimbabwe, you could try Golix and if you live in Kenya, you could try Belfrics. This said, be sure to do your own due diligence before transacting.

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How do I join BitClub Network?

To join, you need to register as a free member first. Then, you need to purchase bitcoin to pay with. We do not accept anything other than bitcoin so you’ll need to buy bitcoin online.

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Could I just buy a $99 position to start?

You could, yes. But you wouldn’t earn from our mining activity.

If you buy a position, you should aim to purchase a share in a mining pool as soon as you can.

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What does it cost to join BitClub Network?

US$99 to buy a position plus US$500 to buy a share in Pool 1. So a minimum of US$599 (payable in bitcoin). Of course, you could join and buy a share in Pool 2, or Pool 3. Or you could buy a share in the

Founder’s pool, which will give you one share in each of the three pools. Whichever option you prefer. Ultimately, you should aim to be a Founder if you can afford the $3500 necessary as there is more value to be had in the Founder’s pool than, say Pool 1, which is the entry-level pool.

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Can BitClub Network verify its mining activity?

We can indeed. We have a public mining pool where you can track our hashing power in real time. See //www.bitclubpool.com/ As our membership grows, so does our mining pool and you will see more hashing power being added to our pool website, which you can track in real time. Having more hashing power allows us to hit more blocks on a daily and weekly basis.

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If BitClub Network is already successfully mining bitcoin, why share its profits?

Because of how mining works, it’s getting harder for smaller mines to make profits. When bitcoin came into being, anyone could mine with their home computer and hit a block. Now, even if you have millions of dollars’ worth of equipment, you still might be too small to solo mine and be profitable, so the entire industry has turned to mining in pools and sharing profits. In order to be profitable today, one needs to have massive purchasing power. With our business model, instead of raising capital through the markets, we allow members to pool their money so as to allow large purchases. This pooling results in larger discounts on hardware, less electricity costs and a much more efficient mining operation. By taking a percentage of all the bitcoin mined and putting it toward a re-purchase, we’ve basically created an automatic “autoship” so that members never have to pay out of their own pockets. With such a structure, we all win and is the reason why BitClub Network can – and likely will – become one of the largest bitcoin mining pools in the world.

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What kind of returns can be expected?

Based on past and current performance, an investment in any Bitclub Network mining share (Bitcoin or GPU) should garner a growth in investment of between 3 – 5% per month. Again, there are no guarantees.

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Does BitClub Network guarantee a Return on Investment (ROI)?

We do not. We do not guarantee a mining share will have a set return. You will never hear us make any claims about how much you will earn from having a share in one of our mining pools. Why? Because bitcoin mining is extremely complex and with the difficulty level constantly increasing every 10 days and new hashing power being introduced, it is impossible for anyone to accurately predict an ROI. (Especially with our business model requiring re-purchases or more simply, daily maintenance fees). On this note: if you find any company offering a set return, there’s a high probability they’re a ponzi scheme. The sad reality is you will never know if a cloud mining company is actually mining, so we recommend you steer clear unless they are totally transparent. At Bitclub Network, we are not a cloud-mining company and everything we have, or mine, can be verified.

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Does BitClub Network have offices in South Africa?

Yes. We have our Head Office in Randburg, Johannesburg (7 Avon Road, just off Malibongwe Drive in Randburg) and a satellite office in Alberton, Johannesburg (Office No 20, New Redruth, cnr. Penzance and Voortrekker Roads (opposite Home Affairs).

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Where is BitClub Network located?

Everywhere and nowhere. BitClub Network operates from all over the world, and this structure is intentional so there is no single point of failure or compliance issue that will hold us back. We have multiple mining locations across Europe and a mining facility in Iceland. Our hosting servers and mining pool servers are located in the Netherlands with redundancies in Hong Kong and Switzerland. Our programmers work remotely, our support staff work from their homes and we have no need for a physical location. BitClub Network is operated virtually, due to blockchain technology and other decentralised and distributed networks. With no overheads from a physical “Head Office”, profits are maximised and passed onto our members.

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Who owns BitClub Network?

BitClub Network is run by a group of programmers, bitcoin mining experts and investors who have come together with network marketing leaders to offer a simple referral-based mining pool. In a sense, we have a decentralised corporate structure in which everyone knows their role. Fact is, we have an incredible and expert team assembled. That said, we prefer to let the technology and our business model do the talking.

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Is BitClub Network some kind of “pyramid scheme”?

(We pose this question only because it’s one that has been asked previously). Bitcoin is a legitimate crypto-currency, already used by many people around the world, whilst BitClub Network is simply a platform in which people come together to share in the profits generated by the mining of bitcoin and, for that matter, Ethereum, Ethereum Classic, Monero and ZCash. As opposed to “cloud mining” in which bitcoin mines exist in name only, we have our own mine in Iceland and on the blockchain – through which our mining activity can be verified at all times. See www.blockchain.info

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Is this website only for South Africans or can anyone join BitClub Network?

Anyone can join. BitClub Network is already big in a number of countries around the world. So, if you reside in South Africa, you could join here and then interest your friends, family members or business colleagues elsewhere to join you.

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