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Author Topic: Instant-Payout Mining - BitPenny.com  (Read 32903 times)
OneFixt
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February 10, 2011, 10:23:58 AM
 #41

The current payout rate (0.00173091 BTC) is extremely low! Undecided

lzsaver, thanks for including a description of BitPenny in the Russian forum (though the link is not pointing to the right thread).

The 10% commission may seem high, but please note that it is 10% of expected value, not 10% of mined blocks.  This means that users always make 90% of their theoretical maximum, with no "bad days".  The server takes all the risk and will even operate at a loss when necessary.

Some people may be confused since your thread is titled "Все о пулах совместной генерации", ("All about cooperative mining pools"), but BitPenny is not a cooperative pool.  Rather, it is a server which pays for hashes with its own BTC funds, taking a large risk in order to provide the smoothest possible payout to its miners.  Even if only a handful of slow miners connect to BitPenny, they will all be making BTC on every submitted hash, without having to worry about the number of other connected miners or the actual rate of generation.

It can be difficult to compare a cooperative pool with BitPenny without trying BitPenny first, so I would encourage everyone to try it to really get a feel for the difference, and then to choose whichever mining solution they prefer.

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ribuck
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February 10, 2011, 11:13:41 AM
 #42

The 10% commission may seem high.
10% doesn't seem high to me. If someone wants to provide a similar service for a lower commission, nothing is stopping them. Right now, you have the lowest commission rate for "per-share" mining payouts.
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February 10, 2011, 04:06:12 PM
 #43

Pretty nice service, seems to be working as described. I'm not sure if I will be using BitPenny.com or solo mining (10% will after all add up to a bit over time), but the steady generation rate is very nice Smiley
OneFixt
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February 10, 2011, 04:12:10 PM
 #44

Pretty nice service, seems to be working as described. I'm not sure if I will be using BitPenny.com or solo mining (10% will after all add up to a bit over time), but the steady generation rate is very nice Smiley

Thanks!
If you choose to mine solo, please feel free to stop by here, from time to time, to raise your morale after those unlucky streaks  Smiley

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February 10, 2011, 08:32:48 PM
 #45

I used bitpenny today and got my first penny within a couple hours.  Thanks!

I can see why this works great for me, but I am confused about something.  What protects the guy running bitpenny.com from fraud?  Can't I tweak my miner to send proof of work blocks to him, but keep any solved blocks for myself?
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February 10, 2011, 08:37:13 PM
 #46

I can see why this works great for me, but I am confused about something.  What protects the guy running bitpenny.com from fraud?  Can't I tweak my miner to send proof of work blocks to him, but keep any solved blocks for myself?

I see now.  The hashes being generated payout to an address owned by bitpenny.com.  So solving a block does me no good.
Right?
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February 10, 2011, 08:43:50 PM
 #47

The hashes being generated payout to an address owned by bitpenny.com ... Right?

Right! If only I had a bitcoin for every time this question has been asked.
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February 11, 2011, 07:30:26 AM
 #48

Getting some connection problems, frequent intermittant "Problems connecting to Bitcoin RPC" errors.

I'm connecting fine to Slush' pool so it seems to be a server connection issue.

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February 11, 2011, 07:55:12 AM
 #49

"Problems connecting to Bitcoin RPC"

Not mining.
OneFixt
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February 11, 2011, 08:40:49 AM
 #50

BitPenny has completed the first round of beta testing and is down for updates (please see the first post for details).
You may still check and withdraw your balances at any time.

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February 11, 2011, 09:42:49 AM
 #51

Oh too bad  Cry I just started testing it today... I have a slow computer and have not yet solved a block. Hopefully you will get it back up and running soon, OneFixt.
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February 13, 2011, 09:24:30 AM
 #52

I currently generate alot of Bitcoins, so 10% would not be worth it to me.  Your commission would add up to several hundred dollars over just a few months, instead of the pennies paid by CPU miners.  However, if you added this to a service which could immediately list and sell the coins on MtGox for market price (which costs just over half of one percent) and then exchange the proceeds and have it delivered to PayPal (which PayPal does for free, I think) then this adds only the Liberty Dollar (MtGox uses them) fee of 1% plus whatever fee you could negotiate with a currency exhanger (a couple of percent?)  

Thus, you'd still make 6-7% (still hundreds of dollars from me to you) but you may get some of the big Bitcoin generators like me who just want to calculate hashes and get cash (sorry for being a capitalist folks).  I would personally jump at this as it would remove from the equation having to:

1) Wait for blocks to mature to get payout from mining pool.
2) Log into MtGox and enter the amount I want to send MtGox.
3) Enter the address MtGox gives me into my bitcoin wallet and send to MtGox.
4) Wait 15 minutes for those funds to make it to MtGox and then place a trade order.
5) Take the proceeds, less .065%, and forward those to LibertyReserve (which MtGox requires).
6) Use the lengthy LibertyReserve login process to see funds have made it, less 1% for the liberty dollar I never wanted.
7) Sell the liberty dollar through an exchanger for a few percent.
Cool Get money in PayPal - PROFIT!

Skipping directly to step 8 would be nice for me.  Maybe you can cut a deal with MtGox and eliminate Liberty Dollar entirely, saving 1%.  Cut a volume deal directly with someone who exchanges Bitcoins for PayPal delivery.  This would be an incentive for MtGox as well as you would drive business there exclusively.  Cut out all of the middlemen.
OneFixt
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February 14, 2011, 03:02:36 AM
 #53

I currently generate alot of Bitcoins, so 10% would not be worth it to me.  Your commission would add up to several hundred dollars over just a few months, instead of the pennies paid by CPU miners.  However, if you added this to a service which could immediately list and sell the coins on MtGox for market price (which costs just over half of one percent) and then exchange the proceeds and have it delivered to PayPal (which PayPal does for free, I think) then this adds only the Liberty Dollar (MtGox uses them) fee of 1% plus whatever fee you could negotiate with a currency exhanger (a couple of percent?)  

Thus, you'd still make 6-7% (still hundreds of dollars from me to you) but you may get some of the big Bitcoin generators like me who just want to calculate hashes and get cash (sorry for being a capitalist folks).  I would personally jump at this as it would remove from the equation having to:

1) Wait for blocks to mature to get payout from mining pool.
2) Log into MtGox and enter the amount I want to send MtGox.
3) Enter the address MtGox gives me into my bitcoin wallet and send to MtGox.
4) Wait 15 minutes for those funds to make it to MtGox and then place a trade order.
5) Take the proceeds, less .065%, and forward those to LibertyReserve (which MtGox requires).
6) Use the lengthy LibertyReserve login process to see funds have made it, less 1% for the liberty dollar I never wanted.
7) Sell the liberty dollar through an exchanger for a few percent.
Cool Get money in PayPal - PROFIT!

Skipping directly to step 8 would be nice for me.  Maybe you can cut a deal with MtGox and eliminate Liberty Dollar entirely, saving 1%.  Cut a volume deal directly with someone who exchanges Bitcoins for PayPal delivery.  This would be an incentive for MtGox as well as you would drive business there exclusively.  Cut out all of the middlemen.


We could potentially get you to step 4: getting the BTC directly into MtGox with no wait.  After that, though, you would get into trouble.  BitPenny cannot sell for you as that would be a conflict of interest.  You would also lose a very large percentage of your income by selling during market bottoms, at high spreads, and during times of high volatility.

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February 14, 2011, 06:24:51 AM
 #54

You could pay with PayPal directly.  Then there is no longer any real exchange taking place.  The mining service is paying for computer time (hashes) with USD or EUR or whatever and pocketing the BTC.

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OneFixt
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February 14, 2011, 07:47:25 AM
 #55

You could pay with PayPal directly.  Then there is no longer any real exchange taking place.  The mining service is paying for computer time (hashes) with USD or EUR or whatever and pocketing the BTC.

Unfortunately, that would be straying too far from the simplicity of what BitPenny is intended to do: there would have to be a floating rather than a fixed rate, a slew of price-manipulation exploits would be introduced on both the clients' and the server's side, and BitPenny would have an even harder time keeping an adequate supply of coins and/or currency on hand to pay the miners.  For these and other reasons, BitPenny will only ever deal directly in BTC.

The best way to accomplish what you are looking to do would be for someone to set up a complimentary service.  This service would give you a permanent BTC address, and it would buy your coins at market price whenever you sent them to that address.  Then you could mine directly to that address through BitPenny.

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ronaldmaustin
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February 14, 2011, 11:28:01 PM
 #56

We could potentially get you to step 4: getting the BTC directly into MtGox with no wait.  After that, though, you would get into trouble.  BitPenny cannot sell for you as that would be a conflict of interest.  You would also lose a very large percentage of your income by selling during market bottoms, at high spreads, and during times of high volatility.

So long as BitPenny is just immediately selling on MtGox at market rates, I fail to see the conflict.  As I cannot define the market bottoms and what is considered volatile in the market, for either myself or BitPenny to refrain from immediate sale upon generation would be currency speculation, which does not enter into the business model proposed.  However, the poster who said just pay PayPal for hashs hit the nail on the head.  THAT I would be willing to pay 10% for to eliminate loss of time, and possibly Bitcoins, with all the given transfers.  For example, right now I want to transfer $100 out of MtGox to LibertyReserve and cannot do so because I believe the owner of MtGox does not currently have funds on deposit at LibertyReserve, so I have to wait.
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February 16, 2011, 12:08:30 AM
 #57

Just wondering if there's any update on when BP will be back up Smiley

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OneFixt
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February 16, 2011, 12:34:56 AM
 #58

Just wondering if there's any update on when BP will be back up Smiley

It's planned to be by the end of this week, but there is no hard date.

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February 20, 2011, 03:44:00 PM
 #59

Sorry for the bump, no other way to be notified of new msgs on this thread Sad

(I dont always get new reply notifications, pls send a pm when you think it has happened)

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February 21, 2011, 02:18:12 AM
 #60

Sorry for the bump, no other way to be notified of new msgs on this thread Sad

Same as TiagoTiago! Need to follow this thread, but the only way is to post  Roll Eyes
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