Hmm.. that sounds like a potentially serious pothole down the road. Well, one that can be solved of course, but a 10 folding of transaction count would still account for precious few transactions in the grand scheme of things. I can also see miners might resist a change here, because a "shortage of transactions" would lead to higher transaction fees, which is in their interest. Could become interesting.

thanks for the elaborate explanation btw.

So you are counting on "profits" that some bond issuers will voluntarily donate to you?
Sounds like a fantastic investment opportunity. Who knows how generous those miners will be. Maybe you will only lose 75% of your btc investment?

another extremely minor inconsequential bug report about the website; looks like the pool's hashrate is becoming too big for the graphs  



(firefox 15 on ubuntu)

I imagine it will look even worse when you hit 1TH. Perhaps its time to drop the last digit.

Not quite exactly the same, because a gpuminer can salvage part of his investment by selling his cards to gamers, or perhaps even participate in that distributed computing project by (dont remember the name, that VC backed startup?). Most FPGA miners (BFL) will be able to salvage their investment by either upgrading or selling their kit to people who want to buy ASICs. A fixed MH bond holder? He is simply screwed. IN fact he is doubly screwed because last time I checked, per MH bonds were more expensive to buy than GPUs, and they will have close to zero residual value.

[quote author=cuz0882 link=topic=98517.msg1100910#msg1100910
In what sense? Earning per mhash have been increasing for a while. It's unclear how the reward drop and ASIC release will effect it though.
[/quote]

lol. How is that unclear? Bitfountain claim they will have 12 TH online by october or november, and that they can easily expand to 50TH shortly after. Butterfly labs is expected to ship a comparable hashrate around the same period.  And there are at least two other ASIC projects underway. One of them might fail or miss their deadlines, maybe even two. But all of them? Bloody unlikely, since its difficult to imagine an ASIC that is easier to design than a bitcoin miner.  None of those asics will be unplugged when rewards halve, whatever gpuminers do is essentially irrelevant. Now guess what will happen with your cherished fixed MH bonds.

LOL. Its certainly within the bounds of my expectations , but anyone who bought this share at 1BTC  might feel differently.

In case you missed it, Diablo is now much closer to a one millionth of a dollar company than a one million dollar company:

https://glbse.com/asset/view/DMC

Way to go D3D!

There are huge differences between bonds and shares. Bonds will payout coupons that are only function of difficulty regardless; your shares could stop paying dividends all together  if for whatever reason your company no longer makes profits, like soaring electricity cost, collapsing BTC value,  equipment failure/theft/fire  etc.

Now Im not saying I would rather hold bonds,  particularly not at current prices, If I had to chose I would also be much more likely to invest in your company, because the difficulty liability that bonds suffer is gigantic,  but you are comparing apples to oranges. (and diablo is writing them down as strawberries in his books).

a single block can contain a lot of transactions. Im not even sure there is a limit to how many (is there?)

You could just sign up for blockchain.info, add your bitcoin addresses as "watch only" (no need to add private keys if you dont intend to use it as a wallet) and let it generate fancy charts. Sure beats using a calculator

Cuz, I understand that very well. Im not saying bonds are per definition a bad idea, they are not.
But Im a miner. And unlike you,  and unlike most investors apparently,  I can see *why* miners are so keen to sell you bonds at those prices. It seems investors dont understand the mining market and dont understand the impact reward halving,  Moore's law, fpgas and in particular, asics will have. Thats why these bonds were ridiculously overpriced, and most still are today.
Ive been saying this for months, and I just showed you DMC as an example, I could have pointed to YABMC as well:
https://glbse.com/asset/view/YABMC

Or puremining, or other bonds that are not propped up by freebee asic upgrades.

If you want to hedge against a BTC price collapse, all you have to do is buy less BTC. But holding BTC at this point makes infinitely more sense than buying overpriced bonds.

Anyway, Ill repeat my offer: lend me your bonds for 6 months, and Ill pay you all dividends plus a negotiable bonus. If you feel so strongly about holding bonds, how could you possibly lose?

ASICs should be compatible with any pool; if you mean the bitminter client, then yes, as I understand that is the plan, support for the asics should be in there before they are shipped.

If you are going to insist on looking at this from a $ perspective, then at least be consistent: you will not have realized a single dollar cent of profits before you sell your bond and sell the bitcoins. The latter is pretty profitable for now, at least for anyone not silly enough to have traded nice coins for worthless bonds, but the former is something you consistently ignore.

Lending to greece and spain was never this profitable either

While I dont want to pretend to understand everything about bitcoin, I could probably answer most, if not all questions you have and perhaps even in a way you understand. And since I dont like being paid per hour, Ill even do it for free.

Im in EU timezone though, so we will need to work out a time that works for both us. If you are interested, pm me a skype name.

Maybe Diablo's "$1 million" mining company turning in to a 1 millionth of a dollar mining company will open some people's eyes as to what can (and will) happen with these bonds:
 
https://glbse.com/asset/view/DMC

Now Im sure Diablo will purchase a few shares back himself to save face, but the simple fact is his shareholders (which really are mining bond holders since DMC only owns mining bonds) saw 99.5%. of their investment evaporate,  Oh well, 99.48% if you take past dividend payments in to account. Like I said, if you like high coupon payments, buy Greek debt, its far less risky.

Hm, wat?
Ik wist niet eens dat betsofbitcoin een pool was, laat staan hoe ze werkt of wat het probleem daar is, maar wie besteelt wie precies met gpumax? Gpumax is een marktplaats, je kan er hashing power verkopen en kopen en gekochte shares naar (bijna) eender welke pool sturen. Ik zie niet in wat daar mis mee is?


Tsja, als meer mensen zouden hoppen, dan zouden die paar overgebleven proportionele pools misschien eindelijk  veranderen. Pool hoppen is niet nieuw, het is al meer dan een jaar geweten, als een pool na al die tijd nog steeds niks gedaan heeft om haar miners te beschermen van hopping (ie, overschakelen naar PPS, PPLNS, DMG,..), dan kan je dat enkel de pool op verwijten.

Wiskunde
Het is meestal eenvoudiger te begrijpen hoe je minder kan verdienen door pool hopping. Neem een proportionele pool zoals deepbit. Stel dat je gewoonlijk PPS minet op Ozcoin of zo, maar telkens deepbit een lange ronde heeft, neem 4M shares ipv het huidige gemiddelde van ~2M, en je hopt dan naar deepbit. Je uitbetaling op deepbit is proportioneel, dus per share zal je in het beste geval niet meer dan de helft verdienen van het gemiddelde of PPS en mogelijk nog een stuk minder als de ronde nog veel langer duurt.

Een pool hopper doet natuurlijk net  het omgekeerde. Hij hopt naar pools die net begonnen zijn met een nieuwe ronde. Als de ronde heel kort is, verdient hij er veel op, net zoals een non stop miner, maar als de ronde langer begint te duren, en de verwachtte betaling per share als gevolg daarvan  zakt,  hopt hij naar een eerlijke pool (PPLNS, PPS of wat dan ook). Hij zal gemiddeld dus meer shares hebben in korte, winstgevende rondes dan in lange rondes en dus meer dan gemiddeld verdienen.

Bij PPS is betaling niet afhankelijk van geluk. Bij proportionele pools (en in beperkte mate, score pools zoals Slush) is je betaling per share afhankelijk van toeval uit het verleden. Als je dat verleden kent, kan je er van profiteren. Bij PPLNS is betaling per share afhankelijk van geluk in de toekomst, en dus per definitie ongekend en daar kan je niet va profiteren.

Geen reden om de poolhoppers te haten, haat de pools met oneerlijke betaal systemen.  En zelfs dat zou je niet moeten haten, gewoon vermijden is genoeg. Een pool hopper is niet meer dan een miner die maximum efficientie nastreeft;  niet echt iets om je voor te schamen. Of haat je ook GPUmax gebruikers?  P2pool gebruikers die hun poorten forwarden en daardoor meer verdienen dan de anderen?


Precies. Of PPS, of DMG. Als alle pools dat deden waren er geen hoppers en was er geen probleem.

He has surfaced. I talked to him on IRC, and even posted some screenshots of his alleged botnet on the forum somewhere.

But thats besides the point. Someone controlling a botnet has no reason to interact with the bitcoin community. Someone buying or selling coins on a massive scale and overpaying, literally, to the tune of hundreds of thousands of dollars, would have every interest in seeking competitive alternatives.

+10.
Its far worse than running your own farm.
If my farm (humble as it may be) goes down, then so be it, see if I care, I lose a few coins, but no one is going to blame me for it.  But since running puppetmaster and having responsibility over other people's farms  I sleep with one eye open, expecting any minute to be waken by an alert,  and just about everything I do, everywhere I go, there is this stress of "what if it goes down NOW".