-

[Bargraphics]

The referral bonus only includes purchased GHS

Oh, that sucks, so I moved pools thinking I was helping LRM while it does nothing at all :/

It can help.

Use the NMC you generate and buy GHashes... everything you buy makes 3% of that amount get added to LRM.

+1

I'm trying to figure out exactly what would best help LRM with these alt coins we're mining.  There are plenty of ways they can help.

I vote dividends Might be smarter to trade for GHs then trade those GHs for BTC instead of trying to go through an exchange. (Haven't really looked)

[daemonfox]

The referral bonus only includes purchased GHS

Oh, that sucks, so I moved pools thinking I was helping LRM while it does nothing at all :/

It can help.

Use the NMC you generate and buy GHashes... everything you buy makes 3% of that amount get added to LRM.

+1

I'm trying to figure out exactly what would best help LRM with these alt coins we're mining.  There are plenty of ways they can help.

I vote dividends Might be smarter to trade for GHs then trade those GHs for BTC instead of trying to go through an exchange. (Haven't really looked)

CEX.io has a NMC/BTC exchange in itself so no need to go NMC>GH>BTC if you just want to put it in Divs.

I would still say LRM should be buying GHashes weekly on div day and report the cloud hash rate.

[countduckula]

Its 2 paths to take, buying Ghz now its +660 gh today to the mining power for those 3200sh NMC, with the 22k they're worth, you might be able to buy some THs and get it in 3-4? (too optimistic?) months, guess it all ends up to do the math on what its better.

[spuushie]

I vote more long term like the asic project. Think buying a few Ghs now would be short term due to the rapid difficulty increase...

[grnbrg]

I vote more long term like the asic project. Think buying a few Ghs now would be short term due to the rapid difficulty increase...

Heh.  Holding seems to almost always the best bet. 


grnbrg.

[CumpsD]

I always thought GHS from cex io was very expensive?

[daemonfox]

I always thought GHS from cex io was very expensive?

The price has come down to legit levels for an instant deliver miner basically.

Best part is using the NMC to buy GH/s means they can just be sold off when the time comes...  it is still a risk but et least the coins are doing something and still retain liquidity and value.

[Flashman]

Use the NMC you generate and buy GHashes... everything you buy makes 3% of that amount get added to LRM.

Only a complete n00b with no grasp of math would think the gigahash prices on there remotely good compared to what our noble friend FriedRat can negotiate.

[daemonfox]

Use the NMC you generate and buy GHashes... everything you buy makes 3% of that amount get added to LRM.

Only a complete n00b with no grasp of math would think the gigahash prices on there remotely good compared to what our noble friend FriedRat can negotiate.

Never said they were... but instant delivery compared to TWO WEEKS!!! is a big factor... especially when it is just merge mined coins that we were not earning before.

[MrTeal]

Use the NMC you generate and buy GHashes... everything you buy makes 3% of that amount get added to LRM.

Only a complete n00b with no grasp of math would think the gigahash prices on there remotely good compared to what our noble friend FriedRat can negotiate.

Never said they were... but instant delivery compared to TWO WEEKS!!! is a big factor... especially when it is just merge mined coins that we were not earning before.

You're also adding another layer of disambiguation by doing that though. You are already trusting that LabRat will honor his agreement and continue to work for the best of his investors, him buying "hashrate" that he doesn't control now forces his investors to trust that gigahash.io won't run with the money. Given some of the concerning issues raised about GH.io attempting some bad actor test attacks, I would say there's no real way to directly compare the price of 1GH/s on that site with 1GH/s sitting on a rack in a facility you control.

[BKM]

Use the NMC you generate and buy GHashes... everything you buy makes 3% of that amount get added to LRM.

Only a complete n00b with no grasp of math would think the gigahash prices on there remotely good compared to what our noble friend FriedRat can negotiate.

Never said they were... but instant delivery compared to TWO WEEKS!!! is a big factor... especially when it is just merge mined coins that we were not earning before.

You're also adding another layer of disambiguation by doing that though. You are already trusting that LabRat will honor his agreement and continue to work for the best of his investors, him buying "hashrate" that he doesn't control now forces his investors to trust that gigahash.io won't run with the money. Given some of the concerning issues raised about GH.io attempting some bad actor test attacks, I would say there's no real way to directly compare the price of 1GH/s on that site with 1GH/s sitting on a rack in a facility you control.

If I have BTC sitting in a wallet doing nothing versus the opportunity to participate in a marketplace that has proven liquidity and a track record of performance along with mining proceeds it would seem rational to put it into the marketplace. Of course, I would need to have a reasonable expectation that the aggregate return from mining and subsequent disposal of the GH/s will exceed my total investment. Price paid for the GH/s becomes less important than total return on invested capital. It amounts to a timing issue and you better know what you are doing if you are trying to time a market.

One would think that the price trajectory of GH/s on CEX.io would be deterministic and downward as a function of the increase in difficulty but it seems that this is not strictly the case. Other forces are at play 

Say what you like about CEX.IO but it appears that they have done a good job and provide a service the community values. And, now I have another ticker to watch......

[Bargraphics]

Would still rather just see the Alt Coins be turned into BTC (About 26 BTC by my estimates currently) and distributed with dividends with 25% being kept by LRM as it is profits from mining.

Reinvesting it in overpriced CEX.IO gear would be a waste and just push payback time further out as 26 BTC is only going to get around ~550GH currently at CEX.io prices (~0.2BTC/Day).

To put this in perspective it would take 130 Days to get that back if difficulty DIDN'T change.
I also didn't sign up to play the CEX.io Market with shareholder gear.

Let's not waste money simply to have more hashing power please.

[CumpsD]

Don't like the reinvestment idea in cex either

- Turn NMC into dividends
- Invest NMC in more profitable hardware

[MrTeal]

If I have BTC sitting in a wallet doing nothing versus the opportunity to participate in a marketplace that has proven liquidity and a track record of performance along with mining proceeds it would seem rational to put it into the marketplace. Of course, I would need to have a reasonable expectation that the aggregate return from mining and subsequent disposal of the GH/s will exceed my total investment. Price paid for the GH/s becomes less important than total return on invested capital. It amounts to a timing issue and you better know what you are doing if you are trying to time a market.

One would think that the price trajectory of GH/s on CEX.io would be deterministic and downward as a function of the increase in difficulty but it seems that this is not strictly the case. Other forces are at play 

Say what you like about CEX.IO but it appears that they have done a good job and provide a service the community values. And, now I have another ticker to watch......

As did Bitcoinica, until they didn't. Then GLBSE, Inputs.io...

I'm not saying CEX.io are a bunch of scammers, but there are some red flags. Even if there weren't, buying 500GH/s on CEX.io simply isn't comparable to having a KNC Jupiter or similar in your possession. Ignoring the counterparty risk that's introduced with using such a service is bad business.

[VinceSamios]

Would still rather just see the Alt Coins be turned into BTC (About 26 BTC by my estimates currently) and distributed with dividends with 25% being kept by LRM as it is profits from mining.

Reinvesting it in overpriced CEX.IO gear would be a waste and just push payback time further out as 26 BTC is only going to get around ~550GH currently at CEX.io prices (~0.2BTC/Day).

To put this in perspective it would take 130 Days to get that back if difficulty DIDN'T change.
I also didn't sign up to play the CEX.io Market with shareholder gear.

Let's not waste money simply to have more hashing power please.

Seconded...

LRM needs to be buying sub $5/GH to stay competitive.

[Ashitank]

Don't like the reinvestment idea in cex either

- Turn NMC into dividends
- Invest NMC in more profitable hardware

+1  , I think this is best for all involved.

[ksenter]

If I have BTC sitting in a wallet doing nothing versus the opportunity to participate in a marketplace that has proven liquidity and a track record of performance along with mining proceeds it would seem rational to put it into the marketplace. Of course, I would need to have a reasonable expectation that the aggregate return from mining and subsequent disposal of the GH/s will exceed my total investment. Price paid for the GH/s becomes less important than total return on invested capital. It amounts to a timing issue and you better know what you are doing if you are trying to time a market.

One would think that the price trajectory of GH/s on CEX.io would be deterministic and downward as a function of the increase in difficulty but it seems that this is not strictly the case. Other forces are at play 

Say what you like about CEX.IO but it appears that they have done a good job and provide a service the community values. And, now I have another ticker to watch......

As did Bitcoinica, until they didn't. Then GLBSE, Inputs.io...

I'm not saying CEX.io are a bunch of scammers, but there are some red flags. Even if there weren't, buying 500GH/s on CEX.io simply isn't comparable to having a KNC Jupiter or similar in your possession. Ignoring the counterparty risk that's introduced with using such a service is bad business.

+1

[Lab_Rat]

Would still rather just see the Alt Coins be turned into BTC (About 26 BTC by my estimates currently) and distributed with dividends with 25% being kept by LRM as it is profits from mining.

Reinvesting it in overpriced CEX.IO gear would be a waste and just push payback time further out as 26 BTC is only going to get around ~550GH currently at CEX.io prices (~0.2BTC/Day).

To put this in perspective it would take 130 Days to get that back if difficulty DIDN'T change.
I also didn't sign up to play the CEX.io Market with shareholder gear.

Let's not waste money simply to have more hashing power please.

Seconded...

LRM needs to be buying sub $5/GH to stay competitive.

Already on it.

Final news (specifics) on the BitFury deal coming out within the next week and the numbers look good. 

[M31]

Oh you tease LR!

Any hints?  How about a greater than ___? 

[BKM]

If I have BTC sitting in a wallet doing nothing versus the opportunity to participate in a marketplace that has proven liquidity and a track record of performance along with mining proceeds it would seem rational to put it into the marketplace. Of course, I would need to have a reasonable expectation that the aggregate return from mining and subsequent disposal of the GH/s will exceed my total investment. Price paid for the GH/s becomes less important than total return on invested capital. It amounts to a timing issue and you better know what you are doing if you are trying to time a market.

One would think that the price trajectory of GH/s on CEX.io would be deterministic and downward as a function of the increase in difficulty but it seems that this is not strictly the case. Other forces are at play  

Say what you like about CEX.IO but it appears that they have done a good job and provide a service the community values. And, now I have another ticker to watch......

As did Bitcoinica, until they didn't. Then GLBSE, Inputs.io...

I'm not saying CEX.io are a bunch of scammers, but there are some red flags. Even if there weren't, buying 500GH/s on CEX.io simply isn't comparable to having a KNC Jupiter or similar in your possession. Ignoring the counterparty risk that's introduced with using such a service is bad business.

I agree wholeheartedly - apologies if I was not sufficiently clear in my point.... Simply put, it makes more sense to put ones reserve BTC into something like CEX.IO as long as you are willing to monitor the account to ensure the total position does not drop below an acceptable rate of return for the risk. If LRM were to do it is my opinion that it be done solely on this basis in order to maximize returns on BTC held for future use. Once analysis indicates that a better return from investment can be derived from buying new gear then, based on its track record, CEX.IO provides sufficient liquidity to transition out of the position in a timely fashion. Clearly we would not want to hold a too large a position for the market to absorb a rapid liquidation. My estimation based on recent volumes is that such position should not exceed more than 5% - 10% of daily volume which would presently indicate not more than BTC78 - BTC156. The range would of course be contingent on the timeline for liquidation. The more time to liquidate the larger the position.

Clearly we have no insight as to the BTC reserves held by LRM if any and the pipeline of gear inbound. Without this information we can only speculate as to an optimal strategy.... hopefully such musings add value to the ongoing discussion.