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Title: Question about leasing miners and pools Post by: BitcoinJacob on December 13, 2016, 05:25:34 AM I a very newbie, but I am not certain if this is the best place for my question. If not, please let me know where it should be.
I am learning about bitcoin mining and am interested in doing so by leasing access to mining equipment over the internet (at least to start). I have looked at a few sites that facilitate such leasing. One in particular requires orders to be for a minimum hashrate of 50 TH/s. I have also been looking at pools. I just looked at a few and they have total hashrates (a few minutes ago) ranging from 6 to 370 TH/s. When I look at recent earnings stats (20 days or so) it seems that the smaller ones tend to be the most profitable. I don't understand how a newbie like me, placing a minimum order for such a small amount of money, could be such a large percentage of a pool's volume? Also, is there an inherent reason why smaller pools are profitable? if so, would I destroy the profitability of a small pool by adding 50 TH/s to it? Thank You Jacob Title: Re: Question about leasing miners and pools Post by: adaseb on December 13, 2016, 10:04:02 AM You are most likely referring to cloud mining, they are all pretty much scams more or less.
You need cheap or free power to make a profit in Bitcoin mining these days. Title: Re: Question about leasing miners and pools Post by: BitcoinJacob on December 13, 2016, 04:16:48 PM You are most likely referring to cloud mining, they are all pretty much scams more or less. You need cheap or free power to make a profit in Bitcoin mining these days. My question isn't about cloud mining, it is about the effects of applying hashpower to pools. Why has my question been moved to speculation? I haven't asked any speculative questions. --Jacob Title: Re: Question about leasing miners and pools Post by: ZACHM on December 13, 2016, 06:24:33 PM The pools profitability has nothing to do with its size, but more with what you get awarded from and what the fees are.
Adding 50 TH/s to any pool should have no effect on its profitability. Keep in mind that on a small pool you might wait longer to get your payout. If you are looking at renting I suggest maybe looking here: https://www.miningrigrentals.com/ Title: Re: Question about leasing miners and pools Post by: unholycactus on December 14, 2016, 01:31:33 AM You are most likely referring to cloud mining, they are all pretty much scams more or less. You need cheap or free power to make a profit in Bitcoin mining these days. My question isn't about cloud mining, it is about the effects of applying hashpower to pools. Why has my question been moved to speculation? I haven't asked any speculative questions. --Jacob Leasing access to hashpower is cloud mining. Leasing access to a miner is rig renting. They are both pretty bad and real owners pass the risk to you with a very low premium. Mathematically, mining alone yields the same results as mining in a pool over a long period of time. Pools are just people getting together and sharing the reward if they solve a block. However, mining a pool reduces variance and since the network difficulty is always rising, it's not a good idea to go for the "long period of time". Title: Re: Question about leasing miners and pools Post by: BitcoinJacob on December 14, 2016, 02:48:39 AM The pools profitability has nothing to do with its size, but more with what you get awarded from and what the fees are. Adding 50 TH/s to any pool should have no effect on its profitability. Keep in mind that on a small pool you might wait longer to get your payout. If you are looking at renting I suggest maybe looking here: https://www.miningrigrentals.com/ Thank you. Is duration a factor? I mean will I get better returns doing 50 TH/s for a day or 600 TH/s for 2 hours (theoretically the same number of total hashes)? miningrigrentals.com is one of the sites that I have been looking at. --Jacob Title: Re: Question about leasing miners and pools Post by: ZACHM on December 14, 2016, 02:53:39 AM It depends on what the payout style of pool you are mining at is.
If it is PPS, then it won't matter. If it is PPLNS then the longer duration will help spread it over a larger LNS. If some other payment method then you will have to look into it. Title: Re: Question about leasing miners and pools Post by: BitcoinJacob on December 14, 2016, 02:55:24 AM Leasing access to hashpower is cloud mining. Leasing access to a miner is rig renting. They are both pretty bad and real owners pass the risk to you with a very low premium. Mathematically, mining alone yields the same results as mining in a pool over a long period of time. Pools are just people getting together and sharing the reward if they solve a block. However, mining a pool reduces variance and since the network difficulty is always rising, it's not a good idea to go for the "long period of time". Thank you. I guess what I am talking about is rig renting. I realize that it is a transfer of risk, but at the moment I am willing to assume the risk. Making even much less in an absolute sense is acceptable to convert a capital expense (buying a rig) into an operational expense (renting one). --Jacob Title: Re: Question about leasing miners and pools Post by: BitcoinJacob on December 14, 2016, 03:18:31 AM It depends on what the payout style of pool you are mining at is. If it is PPS, then it won't matter. If it is PPLNS then the longer duration will help spread it over a larger LNS. If some other payment method then you will have to look into it. Thank you. --Jacob Title: Re: Question about leasing miners and pools Post by: veleten on December 21, 2016, 02:35:00 AM Leasing access to hashpower is cloud mining. Leasing access to a miner is rig renting. They are both pretty bad and real owners pass the risk to you with a very low premium. Mathematically, mining alone yields the same results as mining in a pool over a long period of time. Pools are just people getting together and sharing the reward if they solve a block. However, mining a pool reduces variance and since the network difficulty is always rising, it's not a good idea to go for the "long period of time". Thank you. I guess what I am talking about is rig renting. I realize that it is a transfer of risk, but at the moment I am willing to assume the risk. Making even much less in an absolute sense is acceptable to convert a capital expense (buying a rig) into an operational expense (renting one). --Jacob if you are looking for rig rental,try Hashnest they offer equipment hosting with an option to buyback do not even consider cloud mining services they are 99.9% scams read this topic for reference: https://bitcointalk.org/index.php?topic=878387.msg9697654 |