BitcoGate is an international online member-to-member peer donation platform that works with the Bitcoin digital currency (BTC).
What Is BitcoGate?
There is absolutely zero information about who runs BitcoGate. The website is devoid of any contact information, and the website registration is hidden behind a private registration service. The only pertinent info available there is that the website was registered in October of 2016.
According to Alexa internet rankings, a massive 76% of the site's traffic comes from Nigeria. This could indicate that the site's administrators are physically located within the country.
There is no product offered by BitcoGate. Instead, the company provides a “peer-to-peer donation service,” facilitating cash gifting between members.
The member-to-member donation service that BitcoGate offers is a 2×5 cash gifting matrix. To be eligible for donations, a new member must first pay 0.02 BTC (around $18-20 USD at current exchange rates) to your sponsor. This in turn entitles you to a total of 0.04 in donations from two recruits under you.
This framework continues down to the fifth level, with each deeper level unlocked by providing a donation to your sponsor. A 0.03 BTC donation nets 0.12 BTC at level 2, an 0.05 BTC donation nets 0.4 BTC at level 3, and so on until users are donating 1.6 BTC – well over $1500 USD – in order to receive, theoretically, a whopping 51.2 BTC (over $45,000 USD).
BitcoGate claims that members do not need to engage in recruitment efforts on their own, thanks to the system's “1 link” recruitment method. The service supposedly fills in matrices automatically as new members join.
Even though BitcoGate uses the Bitcoin blockchain as a payment processor, the entire program is still nothing more than a cash gifting scheme, and a rather blatant one at that.
Cash gifting schemes work by enticing individuals to become involved with promises of massive amounts of money coming their way once their downline grows large enough.
What these schemes neglect to tell you is that each person that is recruited under you in your downline receives the same story – and in order for them to receive that massive payout at the end of the line, they've got to recruit just as hard as you do.
This cycle continues, generating more and more chaos as the pool of interested prospective members dwindles. Finally, the newest individuals who come into your matrix at levels three, four, or five find that they can't find anyone to come in under them.
Once this happens, people begin dropping out of the system, donations dry up, and you're stuck with having put money into a system with nothing to show for it except gifting the guy above you.
Who's at the top of the pile? The originators of the cash gifting scheme. BitcoGate claims that the administrators don't take a cut of the donations; that may be true, but you can be assured that the top spots in every BitcoGate matrix is occupied by an administrator's personal account.
Additionally, since BitcoGate auto-populates matrices as members sign up, they have full control over who ends up at the top – and odds are that it's not going to be you.
Making matters even worse, there's no way of knowing just who is getting all this money.
With company transparency in the toilet, the anonymous administrators of this cash gifting scheme will walk off completely untouched, likely with tens of thousands of dollars' worth of Bitcoin in their accounts.
They'll disappear in the night, start up a new cash gifting scheme somewhere else, and do it all over again to another set of credulous individuals who think they're about to strike it rich.
Steer clear of BitcoGate. You're almost guaranteed to lose more money than you receive in donations. Likewise, avoid any similar programs – especially ones who don't even bother to tell you who's running them behind the scenes.
Remember – if they don't tell you who they are, they've probably got something to hide.