After 13 months of Clubcoin mining, I have sold most of my holding. Having received it all as a bonus from Bitclub Network it was free money and I believe it was time to pull the plug.
There are a few reasons for my decision, which I will go through in this post.
What is Clubcoin?
Clubcoin is a decentralised cryptocurrency which was initially distributed to Bitclub Network mining share holders. Since 2016 it has been possible to mine more Clubcoin – in a similar way to mining Bitcoin – but using a home PC. I actually used a VPS to mine Clubcoin so that it was running 24/7. As with many cryptocurrencies, you can also buy and sell Clubcoin at an exchange such as Bittrex.
All transactions are recorded in a public ledger.
What is Clubcoin used for?
Cryptocurrency is only worth something if it is used for transactions. That means merchants need to accept it as payment for goods and services, while users need to be happy to adopt it as a payment method. The final piece of the puzzle is having developers create tools to make it easy and practical to use.
However, I haven’t seen merchants start to accept Clubcoin, which would be a key step in securing long-term value.
There has been much talk of Clubcoin being used as the currency behind “CoinPay” technology. Apparently, it will be the worlds first “Smart Payment App” which will allow merchants to accept multiple digital currencies by using the same invoice and automatically converting the coins to Bitcoin, USD or another Fiat currency.
That all sounds exciting, but I want to see some progress and it’s been very quiet for some time.
What has happened to the Clubcoin price?
In short, not much. When I wrote up my Bitclub Network update in December 2016, Clubcoin was worth $0.52 and at the time of writing it’s worth $0.32 – click here for the latest price. In the last year, Clubcoin has hit a high of $0.53 and a low of $0.14 so it’s about in the middle of those right now.
What most concerned me though was the past three months, during which cryptocurrency has been in a very strong bull market. The likes of Bitcoin and Ethereum have shot upwards, with many smaller coins also seeing tremendous gains – but not Clubcoin. In fact it’s barely moved a few cents either side of $0.30 since March 2017.
Look at these charts for the last year and spot the odd one out…
This lack of price movement in the bull market was the final straw. I decided to sell the majority of my Clubcoin and move it into other cryptocurrencies.
How did I sell my Clubcoin?
The process was very simple; I sent my Clubcoin over to Bittrex and exchanged it for Bitcoin. It only took a matter of minutes. Once the Bitcoin was in my Bittrex account, I was able to buy other coins or transfer it to localbitcoins.com and convert it into cash (I did a bit of both).
In total, I sold 23,900 Clubcoin at a value of $7,409. I had been given 24,900 Clubcoin and mined a further 4,029 so to grab that much ‘free’ money and still have some left over is a fantastic result!
What now for Clubcoin?
Who knows? The future is bright for many cryptocurrencies, while others will fail. I still hold 5,029 Clubcoin (worth around $1,500) so I’m not going to miss out if it shoots for the moon, but on the other hand I have made a good chunk of money from it. Those Clubcoin are still staking as well and I have added another 6 in the last week through mining.
I also hold 4,886 “CoinPay” shares which were gifted by Bitclub Network – and continue to be given away to new shareholders – so maybe they will be worth something in the future too.
One thing’s for sure… from this point on I can’t lose!