Cloudhashers - custom mining contracts starting from 0.01 BTC

[vn2359]

Scam - Scam
they....the prison...

[Danydee]

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[vn2359]

Scam - Scam
they....the prison...

[sillywhim]

Cyprus, The Land of Cloudhashers

[AikiRon]

Signed on June 24, stated getting payouts right away, every hour until 7/7/14 at 6:18 AM EST. Nothing since. Why suspend payouts while rewriting scripts? Totally unnecessary. And who are all the complainers about transaction fees? Sounds like a crock of sh&t to me. I'm feeling more than a tad scammed right about now. Serves me right I guess for turning a blind eye to the "if it sounds too good to be true..." maxim.

[sillywhim]

And who are all the complainers about transaction fees? Sounds like a crock of sh&t to me.

You feel this way because you are a complete bitcoin novice.

YOU DO NOT UNDERSTAND THE PROBLEMS OF EVERY HOUR PAYOUTS. This makes investing small amounts, say 0.01 BTC totally unprofitable because of transaction fees.

So now cloudhashers is "working" on converting everything to once a day payouts, which will make investing  small amounts like 0.01 BTC profitable.

If you do not understand this, then again, it is because you are a complete bitcoin novice and a frightfully strident one at that --the worse kind.

[AikiRon]

You feel this way because you are a complete bitcoin novice.

Well, guilty as charged as to being a bitcoin novice.

YOU DO NOT UNDERSTAND THE PROBLEMS OF EVERY HOUR PAYOUTS.

That, however, is not correct. I'm fully aware of the inherent problems associated with hourly payouts. Perhaps I didn't make myself clear; my concern is that Cloudhashers is using that as an excuse to fold up their tents and steal away with everyone's deposits. From a programming standpoint, there's no reason to suspend payouts while you work on changing the payout algorithms. The coding and testing is done off-line and the only interruption should occur when you have to take the system down to implement the changes.

If you do not understand this, then again, it is because you are a complete bitcoin novice and a frightfully strident one at that --the worse kind.

You might want to check the status of your caps lock key before carping about my stridency.

[kaprosuchus]

I was able to send the entire contents of my wallet (.028 bitcoin) to itself using blockchain.info's "custom transaction" and set a fee of .0001 bitcoin which is currently about 6 cents USD.
This seemed to work fine to clear out my "dust" transactions and it confirmed in a little over an hour.

[sillywhim]

You might want to check the status of your caps lock key before carping about my stridency.

A misunderstanding then. No harm, no foul.

[sillywhim]

I was able to send the entire contents of my wallet (.028 bitcoin) to itself using blockchain.info's "custom transaction" and set a fee of .0001 bitcoin which is currently about 6 cents USD.
This seemed to work fine to clear out my "dust" transactions and it confirmed in a little over an hour.

You could easily do this also in the desktop wallet, bitcoin-qt i.e. even setting "0" as a transaction fee. But doing this makes you a bad bitcoin net citizen and it really increases the traffic that miners have to deal with if they decide to handle your transactions.

The main point though should be why was cloudhashers doing hourly payouts to begin with? They seemed completely oblivious to the consequences. Completely. Other wallets have built-in transaction fee schedules that can not be altered by users. Yes, these particular users could switch wallets but that begs the question of why there are hourly payouts at all.

I once asked about this point blank to cloudhashers. Their reply "...our users appreciate the hourly payouts..."  I think these "users" must've been photoshop'd.

[Max.B]

And who are all the complainers about transaction fees? Sounds like a crock of sh&t to me.

You feel this way because you are a complete bitcoin novice.

YOU DO NOT UNDERSTAND THE PROBLEMS OF EVERY HOUR PAYOUTS. This makes investing small amounts, say 0.01 BTC totally unprofitable because of transaction fees.

So now cloudhashers is "working" on converting everything to once a day payouts, which will make investing  small amounts like 0.01 BTC profitable.

If you do not understand this, then again, it is because you are a complete bitcoin novice and a frightfully strident one at that --the worse kind.

I'm a novice too. This thing about fees is a very crap. And this is just another of many reasons that why btc will never take off.
So in example, if I receive 0,1 btc with ten incoming transactions, to spend 0,1 I have to pay ten transaction fee? This is the most ridicolous system to cash and spend money.
Probably after the speculative bubble of this year, btc will decrease his value close to Zero, because this bullshit make wallet menagement not clear for most of people.. bah maybe I'm wrong..

[kaprosuchus]

I sure hope cloudhashers starts paying again soon.  I was ready to dump a lot more money into them once I hit my first 30 days. 

Even if this is a sc@m, they'd make more money if they keep paying, as long as they continue to take in more than they're paying out.

[sillywhim]

I'm a novice too. This thing about fees is a very crap. And this is just another of many reasons that why btc will never take off.
So in example, if I receive 0,1 btc with ten incoming transactions, to spend 0,1 I have to pay ten transaction fee? This is the most ridicolous system to cash and spend money.

Hold on a second...

When the bitcoin protocol was first formulated, it was envisioned that eventually all possible bitcoins would have been mined (a hundred something years from now, really.) At that time it was believed that the bitcoin economy would be very mature and viable.

To incentivize miners to continue "mining" sans bitcoin rewards, the transaction fees alone would provide a good reward to the miners.

Currently, the voluntary transaction fee is 0.0001 BTC per 1K of transaction size payload. Each bitcoin transaction that occurs (go to blockchain.info and watch 'em stream in) is around 200 to 500 bytes. So you can have multiple previous incoming transactions go out under that 1K size (and it is still voluntary as of now.)

So if you have in  your example, ten transactions that amount in total to the btc you want to send out, you may have to pay 0.0002 BTC to send it. Again, currently it is voluntary (but that can change real fast in the future.)

Do you know how much it costs the merchant to accept credit cards? How much it costs to send a bank wire? How much western union charges? How much a postal money order costs?

Bitcoin is a tiny tiny fraction of all these methods of money transmissions. And this tiny tiny fraction oddly threatens the very structure of the banking system and interest rate implications clearly going back over two thousand years at least.

I think for this point alone you'd be happy to pay under ten cents for your bitcoins.

[AikiRon]

I sure hope cloudhashers starts paying again soon.  I was ready to dump a lot more money into them once I hit my first 30 days. 

Even if this is a sc@m, they'd make more money if they keep paying, as long as they continue to take in more than they're paying out.

Which is the very definition of a Ponzi scheme.

From Wikipedia, the free encyclopedia:
"A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme." [1]

[1]  "Ponzi Schemes – Frequently Asked Questions". U.S Securities and Exchange Commission. U.S Securities and Exchange Commission. Retrieved 23 June 2012.

If it turns out that Cloudhashers is operating along the lines of this model then they have been disingenuous at best in their marketing pitch. After all, they advertise themselves as providing a guaranteed return investment opportunity, not an opportunity to participate in a gambling venture (which all Ponzi schemes are). Cloudhashers claims the ROI on deposited capital comes from their scrypt mining operation and then elaborate on why they can offer such high payouts (proprietary hardware, advances algorithms and cheap electricity). Perhaps they're truthful, perhaps not. The reality of the situation remains to play itself out. Either Cloudhashers will resume paying on an altered schedule and activate the promised mining multipool or they won't. We'll see.

[AikiRon]

A misunderstanding then. No harm, no foul.

Agreed.

[sillywhim]

Since the stoppage of Cloudhashers payouts 2014-07-07 10:18:45 GMT, there have been 11 investments (some bogus) totalling 0.29221338 BTC or $181.76 USD.

As a part-time ponzi scheme analyst I, sillywhim, conclude that the cloudhashers ponzi scam still has some legs to it and that payouts should continue in order to attract more dummies.

[dekodoge]

SCAM is SCAM

[vn2359]

Scam - Scam
they....the prison...

[ronskii]

Sorry to say this.. but nothing unexpected..

[vn2359]

Scam - Scam
they....the prison...