What is Bitknock
What is Bitknock - 2016 Update
What is Bitknock? You many ask. Well, Bitknock was initially presented as one of the biggest opportunities that had hit the Bitcoin mining industry. Bitknock was a Bitcoin Mining company. It offered a revolutionary new way to create passive income, just by taking advantage of cloud mining. By simply purchasing mining power through Bitknock, you could use it to mine (generate) your own Bitcoins.
The company was established in June 2014 with the objective of offering ordinary people an opportunity to start mining Bitcoins without purchasing their own mining or computing equipment. It was launched in South Africa through the TUB network on the 1st of July 2015. Bitknock offered one of the best returns (up to 20% per month on your initial investment) in the bitcoin mining industry. Bitknock rendered an excellent service and offered excellent returns to it's miners until the company dissapperad with miners funds on the 10nth of February 2016.
How Does Bitknock Work?
People use to mine Bitcoins with their own personal computers, but today that is no longer possible as Bitcoin mining requires many specialised computers called miners to work together, and the costs of maintaining these miners is very high.
To mine Bitcoins at a profit requires the latest bitcoin mining equipment and cheap electricity. Bitknock has thousands of latest mining computers situated in various mining farms or data centres all across China where electricity is cheap.
These computers are connected and work together to validate Bitcoins transactions. This process is referred to as Bitcoin cloud mining. For every successful validation of Bitcoin transactions, a certain number of new Bitcoins are issued as a reward.
The ability to successfully validate Bitcoins transactions and receive the rewards is called Bitcoin Mining, and is measured in Mining Power: Giga Hashes per second (GHS).
Bitknock offers you the opportunity to purchase this mining power (GHS) so that you can start mining and producing your own Bitcoins. You don’t have to worry about the need to physically buy your own hardware, pay for expensive electricity, or configure and understand the bitcoin mining process.
After buying mining power in the form of Giga Hashes per Second (GHS), you will be entitled to a certain percentage of the Bitcoins that they produce. The system was designed to offer Bitknock clients a return of 20% per month. However, in reality the return fluctuates depending on the Bitcoin price, mining difficulty, equipment maintenance costs, and demand and supply of mining power.
Getting Started with Bitknock
All you need to get started with Bitknock is a basic understanding of Bitcoins and Bitcoin Mining, as well as access to a computer and internet. The first step - go to the official website and create a free account.
To be able to register, you must have a sponsor and follow a sponsor link, otherwise the system won’t allow you to register. On the registration page, type your username, your email address and your password. Choose a beautiful nickname for your username as you will be using it as your referral link when recruiting other people.
Your Bitknock Wallet Address
To fund your Bitknock account, you will have to buy Bitcoins and transfer them into your Bitknock wallet. To transfer Bitcoins, you must know your Bitknock Bitcoins wallet address. To locate your Bitknock Bitcoin wallet address, go to the main menu and click 'Wallet', then click 'Balance'. Your Bitknock wallet address is that long text with many characters. To fund your Bitknock account, Bitcoins must be sent to the address above.
Funding Your Bitknock Account
As mentioned earlier, to fund your Bitknock account, you have to transfer Bitcoins into your Bitknock wallet address. If you don't own any Bitcoins, then you will have to go out and buy them at a reputable Bitcoins Trading Platform. The following are the most popular and reputable Bitcoins Trading Platforms in South Africa:
The top three trading platforms require you to link your bank account and provide your identity document and proof of residence before buying or selling bitcoins through their platform. The simplest platform to use as a beginner is localbitcoins. All you have to do to start trading is create an account and verify your email address and cell number. For more guidance on localbitcoin.com read the Bitcoin wallet creation and buying Bitcoins sections of the Kipi Bitcoin blog post. The following YouTube video links provide more instructions for those who prefer visual help.
· Setting up your localbitcoins wallet (2 minutes long)
· How to buy Bitcoins at localbitcoins (4 minutes long)
To get started with mining, you have to buy Bitcoins worth at least $500 and transfer them to your Bitknock wallet.
Buying a Mining Contract and Mining Power
Having transferred Bitcoins to your Bitknock wallet, you are now ready to buy a mining contract package, which has mining power. Bitknock offers a number of mining packages that makes it easy to get started in mining without any complications. The available mining packages start from Power 500 (Cost $500) to Power 10,000 (cost $10,000). Obviously the package you buy will depend on your level of affordability, but most people start with the Power 500 package.
To purchase the Power 500 package, log into your Bitknock account. Then go to the menu and click 'Contracts', then click 'Buy Contract'. A couple of mining contract packages will appear on the side as shown above. Select the Power 500 contract; the price of the contract will be shown in both in Bitcoins and US dollars ($500). Make sure you have enough Bitcoins in your wallet to cover the price of the mining contract package. Click 'Buy Now' at the bottom, and if you have enough funds, you will see a flashing message: 'Payment done with success'. Congratulations!! You are now mining Bitcoins and producing passive income.
Is Bitknock Real?
Every Bitcoin produced by Bitknock is verified through block chain. As a matter fact, Bitcoin and block chain technology experts in our Tub Network Team have conducted an investigation into Bitknock. They wanted to verify the source of Bitcoins received by Bitknock clients.
Their investigation confirmed that Bitcoins produced by Bitknock are indeed new and are sourced from block chains as a reward for verifying Bitcoins transactions. In the last few months Bitknock mined bitcoins worth $ 14 242 595 (R 207 million) as per the blockchain screen shot below.
According to available company date, Bitknock is real. Bitknock is based in Hong Kong and has been operating since April 2014. The Directors of the company are Chen Ke-Yong, Sun Yi, Han Xin and Wang Kang. However on further investigations, and after paying a fee to a Hong Kong Company Registration website, it was discovered that the real Director of Bitknock is Waris Khan from Pakistan. So although Bitknock is a real bitcoin mining company officially registered in Hong Kong, and genuinely mining bitcoins, the information about real director of Bitknock was false.
Should you invest in Bitknock?
You can't invest in Bitknock because the company is gone. Bitknock claimed it uses the latest hardware and technology to mine Bitcoins efficiently; as a result it is able to pay out the highest return in the industry. It claimed you could expect a return of 16% per month, but it could go as high as 20% or more, depending on mining conditions and the Bitcoin price.
Many people who started mining bitcoins earlier through Bitknock recouped their initial investments and made a lot of profit. I am talking about people who following the correct investment strategy, i.e. continuously withdrawing profits.
Unfortunately, on the 3rd of February 2016 the Bitknock website went off line without any explanation or communication from the website administrators. A week later, a case of fraud fraud was opened against the directors of Bitknock as they had shutdown their website without any communication to investors. If you have been mining with Bitknock, it is advisable to write off your investment and move on as the Company owner/s became greedy and decided to defraud you.