Gauging interest - Loans repayable in mined shares

[Shadow383]

So, I've been considering offering small loans on here - thought it might be interesting when offering loans to miners to make them repayable by mining  

An example would be:
-Assuming the next difficulty change is to 2.5 million (gives a nice 0.00002 BTC/share at 100%).

User A requests a loan of 10BTC, I grant it, and in return they have to mine at least 526316 shares (10BTC @ 95% PPS) during the next difficulty period to the pool details I specify in advance.
If they overshoot the target, I pay them 0.0000195/share (97.5% PPS) for any shares mined over and above 526316. If they undershoot the target then we negotiate new terms - payback of some of the loan in BTC or further mining following the difficulty retarget.

Would any miners be interested in accessing loans in this way?

[fabrizziop]

Isn't that the same as mining and then paying with mined BTCs?. Just charge the extra directly.

[Shadow383]

Isn't that the same as mining and then paying with mined BTCs?. Just charge the extra directly.

Near enough, but I personally like the idea of mining loans, with the PPS fee varying rather than interest rate.
It's still a loan, so it's not going to be that different, but nobody's doing it yet so I thought it might be worth looking at.

Besides, if people typically mined PPS at, say, ozcoin or btcguild (5% fee anyway) then in the example I gave they'd be getting interest free credit 

[TheOtherGuy]

I think it is a very good idea.

[fabrizziop]

Isn't that the same as mining and then paying with mined BTCs?. Just charge the extra directly.

Near enough, but I personally like the idea of mining loans, with the PPS fee varying rather than interest rate.
It's still a loan, so it's not going to be that different, but nobody's doing it yet so I thought it might be worth looking at.

Besides, if people typically mined PPS at, say, ozcoin or btcguild (5% fee anyway) then in the example I gave they'd be getting interest free credit 

The nice thing is that it gives you a smooth repayment 

[Shadow383]

Isn't that the same as mining and then paying with mined BTCs?. Just charge the extra directly.

Near enough, but I personally like the idea of mining loans, with the PPS fee varying rather than interest rate.
It's still a loan, so it's not going to be that different, but nobody's doing it yet so I thought it might be worth looking at.

Besides, if people typically mined PPS at, say, ozcoin or btcguild (5% fee anyway) then in the example I gave they'd be getting interest free credit 

The nice thing is that it gives you a smooth repayment 

Yup, it's also pretty easy to show ability to repay, contracts can be based on a combination of rep and expected time to mine away the debt 

Basically miners are just preselling hashing power to you?

That would be the idea yeah. Could be useful for some miners looking to expand their mining op quickly 

[salfter]

Sounds like an interesting idea...have been considering asking for one as a way to get my hashrate up sooner, but between ASICs (I'm already waiting for two Jalapeños) and the halving of the block payoff from 50 BTC to 25, I'm not sure I'd want to get myself into that kind of hole.  I'm currently using P2Pool, so directing the output of a particular miner to another address is easy to set up. 

Maybe next year, the outlook will be more clear.  Guess I'll have to be content with ~150 MH/s on my equipment and small-scale investing in other people's rigs until then.

[DOH!]

So, I've been considering offering small loans on here - thought it might be interesting when offering loans to miners to make them repayable by mining  

An example would be:
-Assuming the next difficulty change is to 2.5 million (gives a nice 0.00002 BTC/share at 100%).

User A requests a loan of 10BTC, I grant it, and in return they have to mine at least 526316 shares (10BTC @ 95% PPS) during the next difficulty period to the pool details I specify in advance.
If they overshoot the target, I pay them 0.0000195/share (97.5% PPS) for any shares mined over and above 526316. If they undershoot the target then we negotiate new terms - payback of some of the loan in BTC or further mining following the difficulty retarget.

Would any miners be interested in accessing loans in this way?

I have a very stable 3.3gh/s I'd like to use as collateral on a loan to snag another 7970 immediately if you're interested in making a deal.  It would bring me up to 4gh/s,  I would need a 30btc loan to make it worth it for me.  PPS calculator at deepbit says I'd make 40btc/month at current difficulty running 4gh/s, so a 3 week payback period would be all I would need, maybe a full month depending on price/share and uptime.  If mining takes a shit or BFL ships a month early I have cash to buy btc with, I just figured that if I can keep cash out of the equation at this point it would be a good idea.