Post Updated Jan 21, 2018.
Recently I signed up with two companies –
Power Mining Pool and USI Tech – that give a daily return of 1% on your Bitcoin investment. Over the couple of months, I’ve had a chance to compare how the two companies operate and the earnings they provide.
Power Mining Pool
Power Mining Pool is the first company I joined. It launched in September 2017. They mine 7 different cryptocurrencies on your behalf 24/7 and pay you the Euro value for the mined coins. Then they trade the mined coins for Bitcoin and pay you again on any profits made in the trading pool. Your accumulated earnings can then be withdrawn in Bitcoin.
To use the program, you buy mining shares. These cost the current Bitcoin equivalent of €50 ($57-$60). So you need to own Bitcoin to buy in. And, as the price of Bitcoin rises or falls, the amount of Bitcoin you have to pay for a share will change.
For each €50 invested, you get a return of €70, paid out at 1% of your investment each day for 140 days (5 months) – a 140% Return on Investment.
What I’ve found is that each cryptocurrency mined returns about €0.07 per day (€0.50 per day in total). This amount doesn’t appear to change with the fluctuating price of Bitcoin.
Earnings are in Euros, not Bitcoins, so as the price of Bitcoin rises, you actually lose out on those gains. Likewise, if Bitcoin were to plummet in value, you’d be protected against loss.
Your earnings are converted to Bitcoin when you withdraw them (to your Bitcoin wallet). However the minimum withdrawal amount is €50. And there’s a Bitcoin transaction fee on top of that of 0.0007 BTC (approx €10 at time of writing). This is a flat Bitcoin transaction fee charged on the Blockchain, not imposed by Power Mining Pool themselves.
In Euro terms, that means you’d actually only receive €60 worth of Bitcoin into your wallet. And, if you take the Bitcoin transfer cost of buying a package, that’s another €10 gone. So you really only break even on the Euro amount if you’re buying 1 mining share at a time.
Buying multiple shares in one transaction is the way to go as the Bitcoin transfer fee is the same regardless of the amount of Bitcoin being transferred.
If Bitcoin continues to soar in value over the coming months, you would likely end up with less Bitcoin than you originally invested after your Euro earnings are converted back into Bitcoin.
If Bitcoin plummets in value, then you’ll come out ahead.
Reinvesting To Compound Earnings
You do have the option of reinvesting your earnings to compound them but you can only buy complete mining shares. So you need to earn €50 before you can buy a new share with those earnings. There are no Bitcoin transaction fees when buying shares directly from your earnings
If you’re into affiliate/network/multi-level marketing, Power Mining Pool does have a compensation plan for those who refer others to the company. It’s a unilevel plan (i.e. any number of people can be recruited by you) 10 levels deep. You must own at least 1 mining share in order to receive your referral commissions.
- Level 1 (personally sponsored affiliates) – 10%
- Level 2 – 5%
- Level 3 – 4%
- Level 4 – 3%
- Level 5 – 2%
- Levels 6 to 10 – 1%
However, the fact that earnings are paid in Euros rather than Bitcoin makes me think this isn’t the best investment option for your Bitcoin. You do have the option of picking when to withdraw your earnings so you can get the most Bitcoin for them. But that means keeping an eye on the Bitcoin market. You also need to cash out when the price of Bitcoin drops to get the most Bitcoin.
Power Mining Pool is open to everyone, worldwide.
Learn More About Power Mining Pool Here (now defunct)
Another European company that only opened to the wider world this year (2017) is USI Tech. Here you buy “Bitcoin mining packages” to earn profit on.
Since I originally wrote this comparison review in December 2017, USI-Tech pulled out of the USA and Canadian markets in early January 2018.
They are no longer accepting new members from those two countries which leaves Power Mining Pool as the current best option for Americans and Canadians. People in all other countries can still join though. In late February 2018, USI-Tech made business changes to comply with USA standards and is now open again to people in the USA and Canada.
Each mining package is the Bitcoin equivalent of €51.71 (approx $60-$65). Again, as the price of Bitcoin rises, the Bitcoin cost of a package drops (as the package base price is in Euros). the €1.71 on top of the €50 is a non-refundable mining fee.
Each package gives a 140% return on capital, paying out 1% each per day.
However, earnings only accumulate on weekdays, not on weekends. So instead of your package earning over a 140 day period, it actually takes 196 days for a package to run its investment course. So each package pays out over 28 weeks (7 months). As of their relaunch in the USA, USI-Tech now pay out every day, not just week days. This means returns are paid almost 30% faster than before.
Earnings here are paid in Bitcoin rather than Euros.
Staying within the Bitcoin ecosphere is a big plus here as far as I’m concerned,
even though earnings take 39% longer to accumulate than in Power Mining Pool.
Since you earn 1% of your Bitcoin packages per day, the amount of Bitcoin you have in the program is key. If you buy packages when Bitcoin is priced highly, you pay less Bitcoin to buy a package. On the other hand, than means you earn less Bitcoin per day!
In investment terms, you should think in Bitcoin rather than in Dollars/Euros.
€517.10 will buy 10 packages. When Bitcoin was €8,000, that would have cost you 0.064375 BTC. With Bitcoin at €14,000, the cost is 0.03679 BTC. Apparently almost half the cost.
However, the first option would pay 0.00064375 BTC per day (0.090125 BTC over the lifetime of the package) whereas the second option would pay 0.0003679 BTC daily (0.051506 BTC of the package’s lifetime).
Let’s say Bitcoin increases in price to €17,000 by the time a package matures. Option 1 (0.090125 BTC) would be worth €1532.12 whereas Option 2 (0.051506 BTC) would be worth €875.60. In both cases you would have spent €517.10 to buy your 10 packages.
Even though it seems counter-intuitive, it’s better in the long run to buy your packages when the price of Bitcoin is lower against fiat currencies.
Reinvesting To Compound Earnings
You can also reinvest your earnings to buy new packages.
USI-Tech allows you to set up automated reinvestment options (
something Power Mining Pool doesn’t provide). You can allocate anywhere from 1-100% of your earnings to reinvestment and when enough earnings have accumulated, the system will auto-buy a new package for you.
USI-Tech also has a referral program for the marketers. One difference here between it and Power Mining Pool is that when someone joins USI-Tech, they have to use a referral link. They cannot simply go to the site’s home page and sign up. This incentivises people to join under those who actually told or referred them to the company.
This is also a unilevel compensation plan but is 12 levels deep (rather than Power Mining Pool’s 10 levels).
- Level 1 (personally sponsored affiliates) – 10%
- Levels 2-8 – 3%
- Levels 9-12 – 1%
In order to earn commissions from levels 2-12, your personal referrals need to have personally referred 3 or more people who have each bought 12 packages (called qualified members).
These are compressed levels, so say someone on level 2 is a qualified member but their sponsor on Level 1 (one of your direct referrals) isn’t qualified, that level 2 commission goes directly to you (assuming you yourself are qualified); i.e. you get the commission that your level 1 direct referral would have received.
This compression works beyond 12 levels. So if there’s no qualified member in the chain between you and someone on level 20, say, you get the commission.
This actually incentivizes members to buy 12 packages as quickly as they can so they’ll be in a position to receive all the commissions due to them.
Learn More About USI Tech Here
Power Mining Pool Vs USI Tech: Which Is The Winner?
For me, the winner is USI-Tech for a number of reasons:
- Your earnings in USI-Tech are in Bitcoin rather than Euros (as is the case with Power Mining Pool)
- USI-Tech has been around for about 8 years as a company whereas Power Mining Pool only launched in September 2017
- USI-Tech has almost 500,000 members; Power Mining Pool has a couple of thousand members
- With USI-Tech, referrals are incentivised to use your link rather than signing up directly on the site homepage, bypassing you even though they learned about the company through visiting your link
- USI-Tech’s referral program has the potential to pay greater commissions than Power Level Mining’s one. That does depend on your recruiting ability and the recruiting ability of those in your downline though
- USI-Tech hold weekly webinars explaining the program and how to make it work best for you. Power Mining Pool doesn’t provide any webinars.
USI-Tech only pays package earnings on weekdays whereas Power Mining Pool pays every day of the week. USI-Tech is no longer open to people in the USA or Canada.
So, for me, USI Tech wins by long shot.
I bought one mining share in Power Mining Pool and one package in USI-Tech to evaluate each program. I didn’t buy any more packages in Power Mining Pool as, despite the slick interface, it still felt dodgy. As things unfolded, turns out my suspicion was right and Power Mining Pool folded on March 6 after a Cease & Desist order was issued against it in the USA. It didn’t last long enough for me to reinvest the earnings I got there in additional shares. And the €50 I did invest is now lost.
Essentially, when I originally invested, I wrote the money off. It cost €10 to transfer the Bitcoin there to buy the share and it’ll cost another €10 to withdraw the earnings in 4 months (that never happened). By then, the likelihood is that Bitcoin will have increased in value again, further devaluing my investment in PMP. Bitcoin, as we know, nosedived in value in late 2017.
The best option when buying mining shares on both platforms is to do Bitcoin cost averaging – buying packages regularly over time rather than buying them all in one lump. That strategy averages out the costs over time rather than pinning you to the cost of a single large buy.
On the other hand, I’ve already bought another 54 packages from USI-Tech (with funds from my external wallet) and another 8 packages using my earnings in USI-Tech. I still have to pay for packages with the Bitcoin equivalent of €51.50 at the time of purchase.
USI-Tech can provide life-changing income from the commissions you can earn through its referral program. Power Mining Pool has that potential too but I worry about the longevity of the company given that it’s only 4 months old (and, as it turns out, it only lasted 6 months).
So it’s definitely USI Tech for me!
I’ll keep you posted on my progress with them… 🙂
Note 1: Need Some Bitcoin?
If you’re new to Bitcoin, the first thing you should do is open a free Bitcoin wallet at https://blockchain.info/wallet/
If you need some bitcoin to get started but don’t want the hassle of buying Bitcoin through an exchange, you can mine free Bitcoin with your PC. Use your wallet address to withdraw Bitcoins to. You can also get small amounts of free cryptocurrency (including Bitcoin) here each day.
Open a free USI Tech account and check the current Bitcoin price for buying a package. Don’t forget to factor in the Bitcoin transaction fee on top of what you pay to USI-Tech.
Another option is this site which pays 0.00313249 BTC for everyone you sign up. Be careful with this site though – clicks on it can redirect you to other questionable sites. I recommend you use good anti-virus/anti-malware software (like MalwareBytes) before you visit this site.
Note 2: My USI-Tech Bonuses
If you decide to sign up to USI-Tech through one of my links, I’ll give you access to these bonuses which will help you in your own recruiting efforts. I’ll see you appear in my back office and will email you the download links.
You don’t need to sign up to the Bitty Cash program (mentioned on the page) to get the bonuses, though it’s free to join.
If you’ve any questions, drop me an email via the contact page or leave a comment below…
Filed under: Bitcoin