Multipools......the real coin killers?

[theking7426]

What do you think? With a multipool mining and dumping whatever coin is the most profitable does that not destroy the coins.

Is there a way to stop this madness? Probably not but what does everyone think?

[Vivisector999]

Yep they really screw up these coins, especially the small ones with a low network hashrate.  Boosting the difficulty to astronomic numbers then once the numbers change, they drop, and it then takes weeks to get the difficulty back on track. 

Even without things like Multipool, websites like Coinwarz or Coinpolice do the exact same thing.  And even if those were not up, alot of greedy people would still jump to whatever coin they felt made the most money per day. 

There aren't many people that are willing to mine coins they believe in, so count yourself part of a rare group.

[theking7426]

Don't give me too much credit, I have some hash power thrown at some of these new coins as well.

But I am not dumping and my main focus is feather and stable, don't know why, feel like feathercoin will be a huge one and also I have faith in stable coin once its mixing service is up and running, even with the recent issues I have had. It helps that they have large communities.

What coins are your prospective future coins, if you don't mind me asking.

Always looking for more insight from someone who seems to have some knowledge.

[mattopia]

The multi pool I'm in (I believe it's the biggest currently) has been bouncing between LTC and DOGE a lot...  Both have a lot of holders (I believe?) and both have an already high hash rate.  I do not think the pool spends much time on small coins, if any.

I saw a few posts in "the other multipool's" thread where someone accused the pool of screwing up diff on a young coin.  However, the pool had only mined that coin once in 24 hours, only for a few minutes, and didn't find any blocks.

And, finally - multipool or not, there are two things that are fixed with altcoins (at least the scrypt ones I'm aware of)

1) The # of coins generated remains roughly the same regardless of hashpower.  The block time is the block time.  Multi pools don't make more coins, they just sell them faster than someone who is holding them.

2) When a multipool mines and sells coins, the coins don't cease to exist.  Yes, it may lower short-term demand, but whoever bought the coins on the exchange is going to do something with them.

If a coin is a strong one, I believe it will survive the multi pools.  If anything is damaging alts, it's the alts themselves.  Having set up a few coin daemons and compiled from source, I can say that it's hard to find any substantial differences between many of them.  Some don't even bother to change the name of the coin they are ripping off in the documentation.  The innovative ones will win.

Me?  I personally split the difference.  I have a little over half of my hashpower on a multipool (I have to pay for hardware and electricity after all), and the other half I'm bouncing between a few coins that I have faith in.  For those few coins, I'm in for the long run.

[BayAreaCoins]

I think it is wonderful.  Multipools kills the coins that don't have a real back bone! I have a shit ton of DOGE and am super happy that people are making profit! We are still headed to the moon with or without Multipools I am sure one day you will see a mining pool that allows you to mine the most profitable coin and convert to DOGE

www.LocalMiners.com

[ghostlander]

Only the strong survive. It's loyal miners who support and push coins forward. Lose them and game over.

[kalus]

don't blame the multipools.

blame the get-rich-quick idiots that speculate on every fucking newly minted coin, pump it up, and dump it within hours of it reaching an exchange.

multipools are producers.  more coins means more liquidity.  this allows the coins to be used for transactions rather than just being tools for speculation.  speculators are what drive coins to unsustainable value.  as soon as they suck enough people in, the currency is dumped, making money for a few people, and causing all of the people caught in the frenzy to hold worthless coin.  

don't blame the multipools for this.  just like any other investor they're just following, and not setting, the market value.  the main difference between different investors are how long they decide to hold on to their investment.  

and as it's been said in the thread already, time is the coin killer.  99% of the altcoins are not strong enough to survive the distance.

[theking7426]

I guess really what it comes down to at this point in scrypt crypto is a good difficulty retarget that can account for any massive spikes and desertion.
i guess it isn't really the pools fault since anyone on it would likely dump ASAP anyway which is why they use multipool I would assume. I just don't like how easy it  is now for someone to put in zero effort to make some money.

Don't get me wrong, I am all for making money, it is why I mine, if there was no return I likely would not. But to get to this point I have had to put in a fair amount of work, researching coins, what can make or break a coin, the communities behind them the charts, past difficulties and all that, and it has given me a respect for the crypto community.

(as of return, when I started I was happy with just making more then electricity used, so it isnt about the big money for me)

I feel that many of the newbies will never have that same respect as they can at this point get a rig, point at a multipool and watch the bitcoins come in, don't even need to know the names of the coins, what they bring to the table or anything.

[phrozenspite]

this is under the assumption that the people on the non switching pools aren't mining to dump.  Hashrate doesn't equal support. 

[theking7426]

this is under the assumption that the people on the non switching pools aren't mining to dump.  Hashrate doesn't equal support. 

This is not the assumption at all, what i'm saying is that those on the multipool, are not holding, since they dump to BTC and pay out in BTC, im sure some do not, maybe I am wrong. But what it comes down to is that the people not on multipool CAN hold, whereas those on it are definitely not.

Like I said I could be wrong and maybe I have missed some homework on multipools.

[BayAreaCoins]

Only the strong survive. It's loyal miners who support and push coins forward. Lose them and game over.

100% right

[kalus]

this is under the assumption that the people on the non switching pools aren't mining to dump.  Hashrate doesn't equal support.  

This is not the assumption at all, what i'm saying is that those on the multipool, are not holding, since they dump to BTC and pay out in BTC, im sure some do not, maybe I am wrong. But what it comes down to is that the people not on multipool CAN hold, whereas those on it are definitely not.

Like I said I could be wrong and maybe I have missed some homework on multipools.

hashco.ws lets you hold the coins you want, and sell the ones you don't.

multipool.us let you hold the coins you want, and sell the ones you don't.  

saying switching pools are across-the-board bad, or that most-or-all switching-pool miners 'dump' coins is a generalization;  like saying all filesharing is illegal.  

[frambelicious]

But what it comes down to is that the people not on multipool CAN hold, whereas those on it are definitely not.

I think that's the point - if you know how some market members are acting, you can play them. The easiest way I see lies in the combination with the autosell functionality of Cryptsy - other exchanges have probably similar mechanisms in place...

My impression is that the autoselling feature offers the coins at a price a tiny bit below the lowest offer. As an Altcoin-Collector / Investor you do the following:

• Watch Altcoins with a high spread (selling price is higher than buying price)
• If a pool comes in autoselling you notice it by the arrival of new sale offers (each asking for a price a little bit lower)
• Place a buy offer, offering a little bit more than the current highest bidder
• Offer coins for sale (a little bit higher than your rebuy bid)
• The next autosold coins will be offered at a price *below* your offer. Simply wait for the cheap coins coming in and gobble them up

In a bear market as right now you will probably simply wait for the cheap offers, but in a bull market I think you can play the autosellers like described above. Practically this mechanism seems to be in place, even if unvoluntarily...