Over paying for hash power, why?

[mikeywith]

The orders on Nicehach today were INSANE, many groups on FB/Telegram were talking about it, someone posted a screenshot and I thought it was a glitch or something, when I checked https://www.whattomine.com , found it was real! to double-check I went ahead and looked at the order book on Nicehash.



I want to hear your thoughts ( I have a few that I will share later) on why would someone pay 0.0906 BTC per PH/day? let's run the numbers in USD to make it a bit easier to understand.

0.0906 BTC a day = 650$ for 90PH he pays  $58,500 to make 1.55 BTC or $11,100 a day, that's a $47,400 loss per day or about $2000 an hour, why would anyone on planet earth pay 5 times what they can make? and by the way, this explains the crazy high payout from NH today.

[philipma1957]

This went on for five weeks when gaw miners was launching a bs coin about five or six years ago.

I have to think a coin was getting launched or an older small coin was superpumped.

Peercoin for instance.

[mikeywith]

I have to think a coin was getting launched...

Maybe.

... or an older small coin was superpumped.

Peercoin for instance.

I initially thought CW or Bitmain or anyone else for that matter was trying to pump their coin's hashrate, but it doesn't look like it, all SHA265 coins are pretty low in hashrate, nothing major is happening to any of them for the past couple of days, check them out.

[Steamtyme]

I can only think of laundering as a reason for overpaying. Whether it be FIAT, or more likely old/tainted coins into new coins either to avoid taxation or muddy the trail.
Apart from that there is always human error and/or stupidity.

[mikeywith]

I can only think of laundering as a reason for overpaying. Whether it be FIAT, or more likely old/tainted coins into new coins either to avoid taxation or muddy the trail.

This is my top 1 most likely scenario, whoever did that was

 1- Desperate to get the power, they were way too far from other competitors, they could have paid half what they paid and still got all the hashrate they wanted, but they didn't care

2-  Knows enough about mining, their orders were divided between the 4 SHA256 markets ( SHA256 EU, SHA256 USA, SHA256AsicBoost EU, SHA256AsicBoost US)

The second point makes me rule out the possibility of a clueless person playing with a ton of BTC, and the first point rules out any rational or economical benefit where money laundering is not the sole motive.

Another possibility which doesn't go against any of the above points or I rather call them facts is a software bug, we could easily assume that nicehash is almost entirely controlled by bots, a simple glitch in the software makes the bot do stupid things.

[thierry4wd]

Hi,

So, is possible 51% war on shitcoin ... i don't know, so i confim the price on is crazi at this time.

[Steamtyme]

Another possibility which doesn't go against any of the above points or I rather call them facts is a software bug, we could easily assume that nicehash is almost entirely controlled by bots, a simple glitch in the software makes the bot do stupid things.

This was more what I was referring to with my stupidity comment. People trust bots to handle a lot of things and if they got complacent or missed a small error they could easily wipe out a lot of value depending on the amount of funds they started with.
I still lean heavily on the laundering as being more likely than the bot error. It's possible it could be both.

[philipma1957]

"...There is a see-saw game with  BCH vs BSV  both have triggered  their emergency difficulty adjustment pattern vs standard time.

If you bounce from one to the other.  the diff  swings like mad  and you get quick and easy blocks..."


https://bitcointalk.org/index.php?topic=5144362.msg54259348#msg54259348

I condensed idea from adaseb see link.

Not sure it needs a quote as I gave it my own interpretation of his explanation.  I also recalled it happening  a few years ago.

It is paying 2-4x rate  that is normal.

[DaCryptoRaccoon]

This could also be the plus token scammers cleaning there coins via mining getting fresh coins out and putting the dirty out to nicehash.  With nicehash's past with unscrupulous individuals it would not surprise me one bit if this is what's going on.

[philipma1957]

Quite a premium to launder money.

[DaCryptoRaccoon]

When needs must people do crazy things if they are trading they would need clean coins to move into the exchanges they may have thought it might be a idea to mine coins and pay the premium for the clean fresh coins in return.

I could be wrong but can't think of many other people who would have this type of money to burn up like this and not really care as they already made a mint but need more clean coins to move to the exchanges.

Also there "mixing" efforts failed as some exchanges managed to freeze funds previously I read in a news item.

[philipma1957]

Still going on. I got burned by nicehash when the hack happened.
They paid some back but I never gained faith in what they did.

I could have moved 1.9ph and get paid like it is 4 to 6ph.

I moved .3 ph it earned like it was around 1 ph.

so effectively I turned my 1.9 ph into 2.6 ph

I may move more s9s today.


I moved 4 more s9's I am pushing 360th of my 1900 th

they did a payout today so they can't burn me at least some of the extra earnings.

[DaveF]

Since I can't get to a lot of sites where I am because of the web-filter, how are the other hash rental places paying?
I know in the past miningrigrentals.com was a bit above nicehash but not always.

Stay safe.

-Dave

[philipma1957]

nicehash has

EU  USA   sha256     both are 0.0400 and up vs 0.0160 normal

EU USA   sha256asicboost   both are 0.0400 and up vs 0.0160 normal

mining rig rental

all 0.000046 a th or 0.046 a ph

Code:

https://www.miningrigrentals.com/rigs/sha256

Name
RPI 
Hashrate
Price/TH/Day
Min. Rental Hours
Max. Rental Hours
default | available 

 
Whatsminer M3X
97.50	12.30T	0.00004600	3hrs
(0.00007214)
240hrs
(0.00577116)
Rent Now!


F02
100.00	16.50T	0.00004619	24hrs
(0.00077742)
24hrs
(0.00077742)
Rent Now!


F03
100.00	16.50T	0.00004619	24hrs
(0.00077742)
24hrs
(0.00077742)
Rent Now!

F05
100.00	16.50T	0.00004619	24hrs
(0.00077742)
24hrs
(0.00077742)
Rent Now!

BB1
100.00	17.50T	0.00004619	24hrs
(0.00082453)
24hrs
(0.00082453)
Rent Now!

BB2
100.00	17.50T	0.00004619	24hrs
(0.00082453)
24hrs
(0.00082453)
Rent Now!

BB3
100.00	17.50T	0.00004619	24hrs
(0.00082453)
24hrs
(0.00082453)
Rent Now!

F01
100.00	16.50T	0.00004619	24hrs
(0.00077742)
24hrs
(0.00077742)
Rent Now!

[DaveF]

So it's not just a nicehash it's both of them.
So that kind of torpedoes the software bug unless it's an app that buys hashpower on both sites.
It's been a while since I used nicehash, but I know MRR you could pay in altcoins. Makes you wonder if this is a way of converting alts into BTC.
If they are pointing to solo pools you would not see a hashrate bump unless they found a few blocks.

It's a stretch but other then that I have no idea.

Stay safe.

-Dave

[philipma1957]

I am pointing 400th of my 1900 th at them

It is paying at around 2.5x  so 400th is paying like 1000

It is as if I boosted from 1900 to 2500th

If they never did the 2017 rip off I  would have all 1900th at them.

which would pay like 4750 th.  I can't afford the risk  that they may take the money and run.

I would get 0.073635 a day vs the 0.02945 I get  but pay out would take a while maybe a week. So I only moved 400 vs 1900.

[zaqwsx]

overpayment have finished imho

I've made a nice overprofit in the past few days

God bless the payer

[thierry4wd]

Yes i have profited to by this up only 3 days...

But, how many day have during this crazy payment ?

[philipma1957]

Yes i have profited to by this up only 3 days...

But, how many day have during this crazy payment ?

this ran 3-5 days tops.


this is the third time I have seen this happen.

If they pay me the funds I will end up a few hundred ahead.

[DaveF]

So now the question is:
Do we point our rigs back to where they were and keep an eye on payouts here and switch back?
Or do we leave them here for a few more hours / days and see if bounces back up this way we don't loose any high profit mining?

I am moving them back where they were. Just wondering what everyone else is doing.

-Dave