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Author Topic: Mining Possibility  (Read 684 times)
silversurfer1958
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April 07, 2015, 02:14:36 AM
 #1

I don't actually like this idea because it doesn't solve the centralisation problem of mining, on the other hand maybe it could generate some ideas.
So there will always be people who want to get into mining but can't afford the gear.
How about, someone who already is mining, offering a portion f their mining operation.
Eg, suppose you have someone mining on say, for example Cryptsy (just an example)
And currently he / she has 3Btc of Mining contracts in Cryptsy's MN2 operation.

Suppose some guy comes along and he wants to dabble in mining but doesn't want to risk too much.

So they agree  and the Guy sends 0.1BTC to the miner.
He's now in for 0.1Btc / 3Bt of the MN2 payouts per day (minus of course some sort of fee, let's say 1%)

This would allow those who currently mine with legitimate cloudbased mining operations to rent out and expand their mining operations.
To further increase trust in such a venture, the Miner could voluntarily, at the start of operations set aside, let's say 0.5Btc in Escrow to settle any disputes and charge a small fee of 0.5% to add to that so that the amount in escrow builds over time.
Once a year has passed, the miner has proved his worth, he gets the escrowed 'insurance' back.

This would mean that anyone initially investing small amounts  would have a claim on the escrowed funds
which would be there purely in case something goes wrong.
These escrowed funds can be kept there both as an insurance policy and guarantee the Miner's part of the bargain,, that if he fails to deliver, there are escrowed funds available to claim upon, or for some future windfall,, lottery

So, anyone currently mining could accept Btc from people wishing to get involved in mining with minimum effort.
Perhaps in some ways this is like those Ponzi scheme mining operations we've seen in the past, but the one proposed here
is utilised using known, genuine mining operations.

The payouts could quite possibly be automated using a custom app that triggers once per day / week to calculate the payouts and
transmit them using the Blockchain API.

A further refinement might be to reinvest 90% of the payout into further mining, this would mean an initially very small payouts, but would possibly generate an ever increasing income stream assuming of course that 90% re investment is enough to overcome the increasing Hashrate difficulty.

So there is an opportunity there for people engaged in legitimate mining operations to rent out their operation profitably.

Of course, as I said  this does not address the centralisation issue.

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ezeminer
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April 07, 2015, 06:18:41 AM
 #2

So a middleman to cloudmining is what you are saying essentially?

notlist3d
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April 07, 2015, 06:30:31 AM
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I think there are already services set up.  What it sounds like is you renting hashpower.    There are many services that allow this.

Just look at nicehash, minningrigrentals, betarigs, etc.   All allow you to rent hashpower if you don't have money for a miner.  I think Cryptsy which you mention even has https://www.mintsy.co/ already which is again can rent hash.

You have to pay a premium with not owning the hardware and for the services.  If you are thinking you will be able to get hash at cost that will never happen without running your own rig.
techgeek
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April 07, 2015, 03:48:06 PM
 #4

Hopefully that site provided above me, has a successful beta testing cause I need that site as well.

Most users I think 90% are in need of that, esp since all this cloud mining crap been ruining the whole mining scene since more asic providers are wanting you to opt in on cloud mining services.

My only concern would be, what would be the difference between the cloud mining and that. Hopefully that site allows to sell back your shares of hash and get paid back immediately.

notlist3d
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April 07, 2015, 05:17:24 PM
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Hopefully that site provided above me, has a successful beta testing cause I need that site as well.

Most users I think 90% are in need of that, esp since all this cloud mining crap been ruining the whole mining scene since more asic providers are wanting you to opt in on cloud mining services.

My only concern would be, what would be the difference between the cloud mining and that. Hopefully that site allows to sell back your shares of hash and get paid back immediately.

I personally think in most cases your better off going with hosting then cloud.   You own the asic this way.  Granted it is going to be higher you can't say you want 10Ghs and select it on a slider. 

But with hosting you know it's not a ponzi and you do own gear.
alh
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April 07, 2015, 08:16:32 PM
 #6

Just to be clear though, there is still risk associated with a hosted miner. While a Ponzi scheme won't happen in a hosted scenario, the host can still "run off with the hardware", or otherwise re-purpose it. While you might own the hardware, without physical possession, you still have to trust your host.
notlist3d
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April 07, 2015, 08:57:36 PM
 #7

Just to be clear though, there is still risk associated with a hosted miner. While a Ponzi scheme won't happen in a hosted scenario, the host can still "run off with the hardware", or otherwise re-purpose it. While you might own the hardware, without physical possession, you still have to trust your host.

This would  be one reason to host in same country as you.  You have a easier legal battle if it does happen.  But if you look there are some hosting that have good track records, I would argue it's much less risk then cloud mining.
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