Bitcoin Forum

I ve seen too many guys here and everywhere asking for 'loans' so that they will be able to buy a mining rig themselves, and then pay back with interest.
I know this cuz I am one of these guys.

The bad side to this is that most of these guys (not me lol offcourse not me) are Scammers, and the reason as to why there are so many scammers in the market is simple - Bitcoins once transfered is untraceable and un reversible, there is no service or methodology (none that I am aware of) which can guarantee the return of the lender's coins ?


Keeping these factors in mind, My questions are :

Is it in the best interest of the whole mining community in helping someone buy their rig ? Or is it a bad thing considering that another new miner would add up to the difficulty & reduced shares/rewards in a pool mining situation ?

2ndly Is it possible at all for guys like me who are seriously interested in getting into the mining business with the help of LOANS from the already active miners ? If yes, what kind of interest rates would be feasible ?

1. It is good because the network will grow.
2. Taking/giving out a btc denominated loan is very risky.

Good questions...

Yup I know they are but still unanswered.

Other miners may not want to help their competition.

Okay, sorry... It's hard to answer these without knowing how much you want to "borrow". A serious mining business are worth over a million. I used to mine in 2011 and even then it was already getting impractical without decent ROI.

Agreeable but isnt it in the best interest of the existing miners ? because one more added miner means more transactions & usage of Bitcoins, if Bitcoins are to 'topple governments' then I think every user counts ?

Whats your opinion ?

I m nottalking about millions, I live in India to be able to make a decent profit out of mining i dont need $10,000 just $1000 is enough (per month).
hence I would need an investor which will enable me to fund my first few rigs.

As far as a figure goes How about 50 coins ? roughly $10,000 ....  I can get 2 50 gh/s BFL products with that kinda money and offcourse there is shipping and customs.

actually, the only added transaction would be from the miner cashing out the bitcoins.

Agreed, as I said thats what most scammers do, so what would you suggest to be a safe method of doing this - assuming there is one ?

Correct, cashing out the 25 ($6200 at current exchange rate) Bitcoins that went to the competition.

Good luck...

cud u help me understand where the cashing out the 25 comes from ?

Block reward for mining = BTC25

forgive my retarded brain but the question is about lending some coins to help someone set up for mining.
and the amount of returns the miner wud have to pay to the investor in return for his help.

How is this related to block solving ?

Am I missing a part of the joke ?  :(

Every day, on average, there are 144 blocks found. If there are more miners, there are less blocks for each miner.

I think it's all good. I realize mining is a competition but people don't all stay in the race. Secondly, there's other currencies you can mine once you can't eek out bitcoinage with your older gpu rigs. And as others mention, the more the more sizable the network.

So you'd rather keep cheaply priced Coins rather than the more valued ones ? Thats basically hoarding dont you think ? how is that ever good for anybody ??

Not saying that they are cheap now but talking in comparison to what they could be in the future.

I just don't understand how you think that helping one's competition could work in their favor.

Should McDonalds show Burger King how to make better french fries so the entire world has a higher opinion of french fries?

There is a concept in economy where it explains when a Shoe Seller opens up his store in a location which is close to another shoe store this helps increase the market size brings in more options for the customers.

But offcourse we are not selling shoes, burgers or french fries.

The whole concept of creating Bitcoins (according to satoshi) is to empower the individual rather than a centralized body which wud control the money flow / liquidity. The entire network is dependent on the amount of bitcoin usage & the amount of growth there is in the market.

Every user that adds to the network offcourse increases the difficulty to a certain level and reduces the reward, but that reduced reward/coins are more valuable than they were before & thanks to EVRY NEW USER which brings in more transaction the value keeps rising, isnt that the concept that got BTC to where it is today ?

We can look at a hypothetical market which wud follow your principle, dont let any competition into the market and soon we would have a monopoly - not 100% but something close to that.

Let's not confuse users and miners, I would argue that it's not additional miners that increase the value of Bitcoin, but additional users and merchants.

Miners make coins, After they are done 'making' them they dont eat them now do they ? lol
They'd probably USE the coins & buy stuff or trade with them in Mt GOX or some other place.

Becoming merchants & users themselves.

If more people mine, that does not mean that more coins will be created.
The system is pre-programmed to output 144 blocks every day.
No more - No less - Regardless of the number of miners in the world.

Yes agreed but with increased number of miners the circulation of those 144 blocks gets increased.. in the end INCREASING the usage of the coins themselves ..

Anymore answers anybody ?