Scrypt.cc Account as 'Collateral / Escrow'?

[Roquene]

I just had an idea.

In Scrypt.cc there is the possibility to lock the Withdraw Address.
This can only be unlocked when writing a support ticket.
With the data needed you entered when you created the account (eg, mobile number).

So we imagine:
a Escrow members create an account (with my email address).
He enter as Withdraw Address one from a lender and locks it. Then he gives me control to the account (username / password).

I will send 5 BTC to the account, and the lenders also. Of this I buy Hashrate. Of the income i pay the lender (plus interest).

Is the loan paid off, the Escrow unlock the Withdraw Address and i can sell the Hashrate and pay out on my own wallet.

So it would be impossible to run away with the borrowed money. And at the same time I offer a collateral with my 5 BTC.

So in the worst case, we would lose both 

Would anyone be interested in something like that?
Did I made a mistake somewhere?

[Scamalert]

I am not sure if you are serious or trolling?

This is an very unsecure setup, the whole idea of having support tickets involved is just stupid..... not suited for escrow.

And why whould you even consider such a thing when bitcoin support multi signatures?

Buyer gets one key, seller gets one key, escrow gets 1 key.

This is far the most secure way to do an escrow transaction, any combination of two keys would allow to redraw the funds.

[Roquene]

Why exactly is that 'stupid'?

And no, Multisig is not a option. Why i should put 5 BTC in a multisig when i can use it direct to buy hashrate?
Would be absolut pointless to put 5 BTC as Collateral to borrow 5 BTC. or not?

Using the locked Withdraw Address i could buy Hashrate for 10 BTC.
All parties achieve their goals faster. And as long as the escrow guy not decamping, no one can lose money.

[Scamalert]

OK, you were serious. I read the post again in more details. Did not mean to offend you.

Its a little unusual, and I guess it would not fit a standard lending scenario, its more like an "invement in hashrate with gurantee"

The biggest problem I see here, is if "you" (the account controller) becomes irresponsive, then will the funds be locked in "escrow". Also I don't know Scrypt.cc well enough to know if there is any options to transfer Hashrate to other people, if this is possible, then could you just transfer the GHash to another account.

[Roquene]

No Problem. I understand the caution.

Therefore, I've created this thread. For questions and criticism.

For the big problem:
Should anything happen to me and I can no longer reach the account, the escrow member takes back control.

He opens a second account and writes from there a support ticket. This data must be included which he has used when registering. (Which I do not know). That would be: name, phone number and answer a 'secret question'. This data don't need to be 'real'. He just have to know it when asked.

After that, the support changes the registered email address and resets the password.

But with the 'transfer Hashrate' you have a point. That's what I really had not thought of.

There is no function to directly move Hashrate. But I could, of course, simply place it on the market and can buy from my second account.

I would have to do then with a very low price, otherwise it's not worth it. And there is no guarantee that the correct account buying. It could also be another member faster.
So this is a very very high risk for me. And I might even lose my 5 BTC.

It is possible, but extremely unlikely.

[el kaka22]

If someone use the scrypt.cc account as the collateral or escrow, it is not a good practice because you don't have full control of the funds in it. Also if the site goes down one day then both will lose all the funds. Also, their withdrawal fees are very high (at 0.001 BTC compared to the standard tx fee of 0.0001) and extra cost will produced.

[jdebunt]

Also if the site goes down one day then both will lose all the funds.

Personally, i think this is the biggest cause for concern.

[dezoel]

I personally will not use cloudmining account as collateral, and one thing that makes me disagree with your opinion is the borrower will not have control with their bitcoin..,
just my opinion..

[ajareselde]

I see your point op, but is it just me or does the ROI on scrypt.cc seams a bit too good ?
Dont see why anyone would involve themselfs in such a multi layer risk as a borrower, doesn't seam so appealing.

cheers

[Roquene]

The ROI at Scrypt.cc is determined by the price of the KHS in the market and of the Rewards.

First is determined solely by the users. The second of the prices of Scrypt Coins and other factors.
Right now, the ROI is around 80 days. What is very good indeed. When the project started, it was in 200 or greater.

But yea, I understand your concerns. I refrain from this idea.

While I entrust Scrypt.cc and the Admin, and I am sure the page lasts substantially longer than 2-3 months, I do not want to risk my current assets.
I am evaluating the idea one more time.

[ajareselde]

The ROI at Scrypt.cc is determined by the price of the KHS in the market and of the Rewards.

First is determined solely by the users. The second of the prices of Scrypt Coins and other factors.
Right now, the ROI is around 80 days. What is very good indeed. When the project started, it was in 200 or greater.

But yea, I understand your concerns. I refrain from this idea.

While I entrust Scrypt.cc and the Admin, and I am sure the page lasts substantially longer than 2-3 months, I do not want to risk my current assets.
I am evaluating the idea one more time.

It's smart to consider all options, like what you are doing. I remember when scrypt.cc started with it's service, and the lack of professionalism surrounding it.
I was promoting it head-on, but only to find that there was a terrible error in adding of the affiliates, and error in adding referral reward to my account. It was all explained as a start issue,
but the issue wasn't fixed until only later in the game, when i lost sizable amount of potential ref. earning. I wont forget that happened, and hence, i lack faith in them.

cheers

[aikunsatu]

a cloudmining account is bad idea for me, because we don't know when we can reach ROI, badly if the cloudmining is scam...

[bitnanigans]

It's probably a bad move because scrypt.cc might be a ponzi, and you may lose your bitcoins altogether.

[subSTRATA]

It's probably a bad move because scrypt.cc might be a ponzi, and you may lose your bitcoins altogether.

scrypt.cc is more than likely to be a ponzi, and i believe it has already been proven somewhere that it is, but I cant seem to find that right now. anyways, just know scrypt.cc is a ponzi and stay away from it. also, scrypt.cc hashing power cannot be sold off as collateral in case of default on a loan, rendering it useless as collateral.

[Amph]

it is not so profitable anyway, so why bothering with it?

the good thing about mining is that you won't reach roi so easily, this should prevent many newbie to lose their money in shady cloud that are instead running a ponzi

because there is no profit to be made in the first place...

[Coinbanker]

watch this, he almost crying.

https://www.youtube.com/watch?v=WxmTpTUvN-8

[subSTRATA]

watch this, he almost crying.

https://www.youtube.com/watch?v=WxmTpTUvN-8

he seems a tad upset, i wonder how much of his life savings he put into that ponzi without thinking

[Scamalert]

watch this, he almost crying.

https://www.youtube.com/watch?v=WxmTpTUvN-8

Looks like he got butt-fucked by scrypt.cc
Poor fellow he was almost crying while telling about how scrypt.cc stole his coins,

I would not recomend anybody using this site.
Not that I had much trust in them to begin with.

[subSTRATA]

watch this, he almost crying.

https://www.youtube.com/watch?v=WxmTpTUvN-8

Looks like he got butt-fucked by scrypt.cc
Poor fellow he was almost crying while telling about how scrypt.cc stole his coins,

I would not recomend anybody using this site.
Not that I had much trust in them to begin with.

it seems that scrypt collapsed: http://btcvestor.com/2015/06/22/scrypt-cc-hack/
a convenient "hack" came along and made all he btc disappear 

[Scamalert]

it seems that scrypt collapsed: http://btcvestor.com/2015/06/22/scrypt-cc-hack/
a convenient "hack" came along and made all he btc disappear 

Just like people here pointed out:

Also if the site goes down one day then both will lose all the funds.

Personally, i think this is the biggest cause for concern.

Biggest problem with this setup is that you have no control over the bitcoins.
Any of the known escrow has far far far better coin security than any of these cloud-scam-mining pages.