The worst thing is that I am not even surprised.

What about financing it through shares? I mean, creating a sort of a cooperative that pays dividends in cards, so people pay the money and at the end when it is developed they get payed in cards. That way you are making sure you will get a number of sales before starting the project. Sort of like testing the waters to know if the demand is there.

There is no need to delay the last share received or the speed worker stats, but the shares this rounds would need to be delayed because it reveals when a round starts.

I had though on doing this and host it in the freenet network (freenet is similar to TOR but with wepage hosting included). Also, make a plugin for the client so the anonimization would be extremely easy.

If this is about programming skill, then you wont mind that the pools delay their information one hour. Without the info about when a new round starts in each pool, lets see how those programming skills help you.

Since you are counting $400 for 4 chips and $150 for the rest (for a total of $650) would it be posible to include a chipset that allowed a ethernet connection and a very simple webserver (like the chipset in a home router) instead of the usb chipset. This way you could have an independent device just connected to the ethernet network and configured by a simple web interface. Im not very informed about the prices but I dont think it would push the cost too much and it would avoid the need for a computer (saving energy and money). The question I guess is if that simple chipset could handle the mining software load.

Yes, but that does not matter here because the point of a pool is that it does not matter who finds the block in the pool. No matter who is the miner that finds the block the profits are shared. In the pool what matters is how many shares you send and how much you earn for each share.

The key is that by being only at the beggining of the rounds you get a higher chance of getting more shares from short rounds (the more profitable shares) while avoiding a big part of the shares from the long rounds (the less profitable ones).

A currency that its not monetarely inflationary is considered price deflationary because of the increase in production due to raise in productivity. If there is not an incrase in productivity prices dont change. So the wages of the workers do not go down becuase the lower prices come from increase productivity (each worker now produces more stuff).

We have been discusing about Pool Hooping in the BTCGuild thread and the conclussion has been that delaying the information stops pool hoopers. The idea is that pool hooping is only profitable if you join when a new round starts. But if you dont know when a new round starts then you can not do pool hooping. So there is no need for complicated system. Just delay the information some hours and pool hooping is not posible. In BTCGuild they can probably get away with delaying the information 1 hour, but in smaller pools like this one maybe you need to delay it like 6 hours or something like that?

I am completely ignorant about how LP works, but does it really report when a new round on the pool starts, or only signals when a new block has been found (in some pool but you can not know in which one)? In the first case pool hooping is posible with LP, in the second case its not.

If the pool hoopers know when the rounds start in real time, they hurt the rest of the users. If they dont, then pool hooping becomes random and they can not profit and do not hurt others.

Pool hooping is only profitable if they know when the round is starting. So yes, delay the stats 1 hour (or whatever) and pool hooping problem is gone.

Its easy to read the JSON. But yes, I dont know if they do it, as I said Im not a hooper. In this sense its probably easier for the hoopers to operate in smaller pools so the probability of a very short round is a lot lower.

Hoopers, at least inteligent hoopers, only jump to pools that just started a round, and then leave to join another pool that just started their round. Im sure there will be better optimizations, I am not a pool hooper so I dont know them. But the key is that you know when a round starts, but not when a round ends, so by being at the beggining of each round in different pools you increase the probability of getting the more profitable shares while avoiding part of the less profitable shares.

They key is that you know when a round starts but not when it ends.

First, the "legal" user does not benefit from having the hoopers in the short runs or in the beggining of the long rounds. Yes, it will make the pool discover rounds quicker, but then the bitcoins have to be divided among more people, so there is no increase in profit from having the hoopers for the "legal" miner. Maybe the only advantage is a reduction on variance, but only maybe because they leave in the long rounds making them longer (Im not really sure about the net result on variance but its irrelevant, the point is that it does not increase the profits for the "legal" miner to have the hoopers).

Then, the shares in the quick rounds are more profitable than the shares in the long rounds. Ideally everybody would want to have luck and get quick rounds. But we know that over time things even out, so "legal" miners assume that they will get an even number of more profitable shares and less profitable shares. But pool hoopers get a bigger number of more profitable shares, while leaving the less profitable shares to the "legal" miners that have to assume its costs alone.

Is that clearer?

EDIT: Its easy to prove that hoopers are taking bitcoins from "legal" miners in other way: Since bitcoins are created at a predictable rate (lets ignore difficulty changes for this), and hoopers make more bitcoins by changing pools (and this can be demostrated easily), it means that there are less bitcoins for the rest. This is because the "legal" miners work more on the less profitable shares (the ones from the long rounds) than the hoopers.

But this is not true.

Because the "legal" miner gets to colaborate more in the long rounds, the ones that are less profitable, while the pool hoppers jump to a new one and stop collaborating. In the more profitable rounds, the pool hoopers get their complete share.

Supposedly you are collaborating in the long rounds because it gets compensated in the short rounds and with time its even. But if some of the miners only collaborate fully in the short runs and only a part collaborate in the long rounds, the less profitables, there is a problem where some are benefiting at the expense of others.

But there are still 50 bitcoins created every ten minutes (roughly) that means 6000 bitcoins a day, 42000 bitcoins a week, ... you get the idea. Thats a big increase in the money supply and there are a number of miners that sell what they produce, so there has to be people buying, otherwise with the new supply of bitcoins the price would plummet.

You can use pci-e extenders that get the current directly from the PSU so the motherboard does not suffer. You can get $100 motherboards that will accept 6 cards with extenders without a problem. And you need the extenders anyway becuase the cards are double and you want them to be separated to keep them cool. So really there is no need for such a expensive motherboard. Get a good one, $100-150 and extenders with a molex to get the current directly from the PSU.

Actually, during the 70's there stagflation. The Fed was loose but because the capital structure was so distorted from the inflation from previous years, the stock market did not do that good. The money flowed into other areas. So watch out, with stagflation the stock market wont collapse but it will hardly keep up with price inflation. Some stocks will do good (specially the ones related with commodities), but overall I dont think it will be that good.

The thing the guy is not publishing or explaining how it works inside because:

1) Its a scam.

2) He wants to make money out of his invention and does not want to reveal how it works.

So yeah, the guy is not publishing anything with scientific standars, nor giving information about his invention, but that does not mean automatically that its a scam.

From the videos I have seen if it is a trick its a very good trick because I have not seen where the energy could be coming from. Also, he has agreed with the greek company to not be payed a dime until they have the prototype working and he has agreed. If it is a scam and the thing does not work why would he agree to something like that?

I guess we will see if it is real or not in a few months. The prototype from the greek company should be ready by October.

Ok, so there could be "negative" excess reserves, meaning that the pool will pay in the future those shares when they are found.


Yeah, this sounds like a good idea. But if the pool goes into a strike of bad luck, new users still know that they might be payed less, unless the pool goes into a strike of good luck, so its not as big but there is still a disincentive. Also, its complicated, people like simple things.