Here is a basic overview… Every 10 minutes a new block of 25 Bitcoin is found by someone in the network who is hashing (using powerful computers to solve mathematical problems). In order to find a block you must attempt to solve a maths problem using a cryptographic hashing function. Mining pools (grouped computing power and investment) are  the most efficient way to mine for new Bitcoin.

The more hashing power (numbers of computers) you have the higher the probability is that your computers will guess the correct answer and solve the problem. When the total shares in the round are equal to the difficulty it means a block should be hit (in theory!).

Because of how mining actually works it is always getting harder for smaller mines to make profits. This is exactly why mining pools were first created. In the early days anyone could mine with their home PC and hit a block. Now, even if you have millions worth of equipment you still might be too small to solo mine and be profitable, so the entire industry has quickly turned to mining in “pools” and sharing the profits between the group. In order to be profitable today you need to have massive purchasing power. Instead of raising millions from a rich investor, or a large corporation, mining pools such as Bitclub Network are allowing members to pool their money together and make huge purchases. This leads to  bigger discounts when purchasing new, more powerful, hardware and lowers electricity costs creating a much more efficient mining operation.

Bitclub Network have a very strategic way that members can pay for the daily electricity, maintenance, and other costs that come with running a large scale mining operation like this. By taking a percentage of all the Bitcoin mined and putting it toward a re-purchase they have basically created an automatic “autoship” that members NEVER have to pay out of their pocket. The reward for chipping in daily is that you are rewarded with a larger share of the pool. With a structure like this everyone wins!

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