HONG KONG BITCOIN EXCHANGE MYCOIN “LOST” $387 MILLION OF CUSTOMERS’ MONEY

By Evander Smart

Reports out of Hong Kong indicate that the MyCoin Exchange has just closed, locking out more than three thousand large investors. The closure has occurred almost one year to the day after the world’s largest Bitcoin exchange, Mt. Gox, closed off all exchange withdrawals on February 7th, 2014. That took almost 750,000 investor’s Bitcoins with it, plus 100k of the exchange’s cache. This sudden exchange closure has a potential combined value of three billion Hong Kong Dollars, which is equivalent to about $387 Million USD.

MyCoin happens almost exactly one year after Mt. Gox

The investors affected would file reports on Wednesday with authorities in Hong Kong because deception was involved in a pyramid-style Ponzi scheme perpetuate by the exchange owners, packaged and sold as a bitcoin trading exchange.

Click here to read more

Is Bitcoin a Ponzi Scheme?

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors, instead of from profit earned by the individuals running the business. Ponzi schemes are designed to collapse at the expense of the last investors when there is not enough new participants.

Bitcoin is a free software project with no central authority. Consequently, no one is in a position to make fraudulent representations about investment returns. Like other major currencies such as gold, United States dollar, euro, yen, etc. there is no guaranteed purchasing power and the exchange rate floats freely. This leads to volatility where owners of bitcoins can unpredictably make or lose money. Beyond speculation, Bitcoin is also a payment system with useful and competitive attributes that are being used by thousands of users and businesses.

Is Bitclub Network a Ponzi Scheme?

NO! A ponzi scheme has no product, it's just a money game set up to pay people with other people's money and eventually it will crash and burn because there is no real money being earned from an outside source. 

Bitclub is a REAL opportunity for members to purchase mining equipment and the various mining contracts are used in mining for dozens of Digital Currencies (also called Scrypt Mining). 

Bitclub have their own proprietary software that controls scrypt mining hardware and they are able to mine for the most profitable coin and then convert them instantly to Bitcoin. 

As a member of Bitclub Network you can purchase a share in their mining pools and the shares are used to purchase mining hardware. All profits earned in the pool will be paid daily and split among all its members

IMPORTANT: 

Bitclub Network doesn't guarantee a share will have a set return and they don't offer 100% ROI claims or anything like that. In fact, you will never hear them make claims about how much you will earn from mining because the truth is they don't know exactly, and it will continue to fluctuate based on the market. 

Bitcoin mining is complex and the industry is moving so fast that its important to keep up with the latest hardware and mining tactics. Some days their members may hit major jackpots and have great revenue to share.  Other days they may only see a tiny bit trickle in. 

Either way, they are paying back the true value of what comes in from the actual mining for the life of the shares.  You can rest, assured that Bitclub is making money and the earnings are being split among all its members.

Bitcoins are not a Ponzi Scheme

More and more people are acquiring bitcoins.  The future of money is digital currency.

World Bank: Bitcoin Is Not A "Ponzi Scheme"