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Title: Risk of using 110% PPS and GPUMAX pools? Post by: FuzzBug on June 06, 2012, 12:20:12 PM There are multiple pools advertising payments of over 100% PPS. This is clearly not profitable in a legit mining opperation.
What are these pools really doing, and what is the risk of taking payouts from them? The only explanation I've heard so far is that they're "cleaning tainted coins", as in buying your hashing power and paying you with "tainted" bitcoins, while keeping the clean bitcoins that your hashing power produces. This leaves the miner with the "tainted" coins. How serious is that? Will the introduction of tainted coins into your wallet in effect taint the rest of your balance? Title: Re: Risk of using 110% PPS and GPUMAX pools? Post by: John (John K.) on June 06, 2012, 01:42:34 PM There are multiple pools advertising payments of over 100% PPS. This is clearly not profitable in a legit mining opperation. They're doing pool hopping. Nothing that extreme as cleaning tainted coins IMO. What are these pools really doing, and what is the risk of taking payouts from them? The only explanation I've heard so far is that they're "cleaning tainted coins", as in buying your hashing power and paying you with "tainted" bitcoins, while keeping the clean bitcoins that your hashing power produces. This leaves the miner with the "tainted" coins. How serious is that? Will the introduction of tainted coins into your wallet in effect taint the rest of your balance? Title: Re: Risk of using 110% PPS and GPUMAX pools? Post by: FuzzBug on June 06, 2012, 10:42:20 PM There are multiple pools advertising payments of over 100% PPS. This is clearly not profitable in a legit mining opperation. They're doing pool hopping. Nothing that extreme as cleaning tainted coins IMO. What are these pools really doing, and what is the risk of taking payouts from them? The only explanation I've heard so far is that they're "cleaning tainted coins", as in buying your hashing power and paying you with "tainted" bitcoins, while keeping the clean bitcoins that your hashing power produces. This leaves the miner with the "tainted" coins. How serious is that? Will the introduction of tainted coins into your wallet in effect taint the rest of your balance? I can see pool hopping for the 110% pools, but GPUMAX is paying 130% PPS, further more, they're selling shares at 140% PPS. Who buys hashing power at 140% PPS? No way that comes from hopping. Title: Re: Risk of using 110% PPS and GPUMAX pools? Post by: Graet on June 07, 2012, 02:07:01 AM There are multiple pools advertising payments of over 100% PPS. This is clearly not profitable in a legit mining opperation. They're doing pool hopping. Nothing that extreme as cleaning tainted coins IMO. What are these pools really doing, and what is the risk of taking payouts from them? The only explanation I've heard so far is that they're "cleaning tainted coins", as in buying your hashing power and paying you with "tainted" bitcoins, while keeping the clean bitcoins that your hashing power produces. This leaves the miner with the "tainted" coins. How serious is that? Will the introduction of tainted coins into your wallet in effect taint the rest of your balance? I can see pool hopping for the 110% pools, but GPUMAX is paying 130% PPS, further more, they're selling shares at 140% PPS. Who buys hashing power at 140% PPS? No way that comes from hopping. oh, ppl pay gpumax for hashes and make a miner on a pool the pool pays the person that hires gpumax direct, not quite sure how pirate substitutes "tainted" coins between their customer and the pool ;) and there is some demand for "freshly minted coins" I have no idea why, but apparently ppl are happy to pay way above market for fresh ones :) Also I don't think gpumax has sustained the 140% - but I don't have an account, prices seem to get discussed in their thread tho :) one 110% pool operates in a country with restricted international trade, so he found a profitable niche selling Bitcoin in the local market at high profit, this enables him to pay miners 110% ish :) and allows people in his country to trade internationally with Bitcoin - I once thought this was what Bitcoin was about - enabling easy international/internet trade regardless of nation or location. there is another "hopping proxy" maybe a few that pay over 100% some are upfront about what they do some not so. So yes, be wary, ask good questions, but don't just believe everything you read in the forums, a lot of people seem to have (conspiracy) theories they can pull out any time with no fear of recrimination or slander charges etc. based on no research, knowledge or fact... Bitcoin is a huge experiment still, the economy is still growing and developing, most of the successful people so far have found a unique niche and built a business based on that - because someone is innovative or unusual (tell me Bitcoin isnt) doesnt mean they are scammers or doing illegal things :) It also does not guarantee long term success for their business model - but hey if no one tried we could all put our gfx cards to use in an awesome COD4 tourney.... :) that was going to be a quick response turned into a rant a bit, best of luck in your Bitcoin journey :) |