How can pools like Nicehash/bitcoinaffiliatenetwork pay more than mining rate?

[armedmilitia]

I've been mining on NH for a few months now, and I've been receiving more BTC than I would be mining on a regular pool (I swear, I'm not a shill for NH).

I get how its a free market for hashrate, but I have no idea why people are willing to pay more money for a 24h contract than will be mined in that 24h... There's no money to be made with it, as far as I can see.

Does anyone know why people overpay? They can't all be noobs throwing money around, after all.

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[PatMan]

These pools you mention are giving you the illusion that you are getting overpaid - that's all it is, an illusion. No pool can pay more than they mine, the same as no business can run at a loss. Any pool that claims to pay more than they earn should be avoided completely, especially one that has a proven shady background. Don't fall for it.

[armedmilitia]

These pools you mention are giving you the illusion that you are getting overpaid - that's all it is, an illusion. No pool can pay more than they mine, the same as no business can run at a loss. Any pool that claims to pay more than they earn should be avoided completely, especially one that has a proven shady background. Don't fall for it.

Here's the dealio, though, the payouts are checking out. NH is actually paying out 0.038BTC/day (calculated using actual payouts to my wallet over the past week) for my 2.8TH, while directly mining will only pay out 0.0352BTC/day according to bitcoinwisdom. The last diff change was negligible (less than a percent either way), and even factoring in tx fees  (Maybe 0.5btc per block, or 2%) + merge mining (practically zilch) won't make up for the 7.9% surplus.

I don't get how they're screwing me here... I can't believe it bugs me that I'm getting overpaid, but it just doesn't make much sense.

[jonnybravo0311]

NH is different than BAN.  Why people pay more for renting rigs than they can make is assuming those people are using your rigs strictly for mining BTC.  There are a number of multi-pools and other coins that can be mined, which would hopefully give the buyer a larger profit than what he paid to rent your rig in the first place.  You make a bit more than you would by strictly mining BTC by selling your hash.  The buyer makes more than he would as explained in the previous sentence.

BAN's model is not sustainable.  Yes, they are currently paying a bonus above and beyond what you can typically make; however, that bonus payout comes directly from their pockets.  They introduced it as a way to entice miners to mine with them, and have clearly stated it is not intended to last indefinitely.  There's a reason virtually every single PPS pool has disappeared over time, changed their payout model, or have charged large percentage fees.  Think about it.  To sustain itself the pool absolutely must consistently have better than expected luck.  Otherwise, they're dipping into their wallet to payout all of the shares when a block takes more than the expected shares to solve.

[OgNasty]

No pool can pay more than they mine

NastyPool will soon prove this statement to be incorrect.   

[PatMan]

No pool can pay more than they mine

NastyPool will soon prove this statement to be incorrect.   

Look forward to that - is s0br your new financial backer now?......

[OgNasty]

No pool can pay more than they mine

NastyPool will soon prove this statement to be incorrect.   

Look forward to that - is s0br your new financial backer now?......

I don't know what that means or who s0br is... NastyPool benefits from being in the "Nasty" family, which means there are multiple sources of BTC revenue available outside of just mining that will be shared with our pool miners.

[aurel57]

These pools you mention are giving you the illusion that you are getting overpaid - that's all it is, an illusion. No pool can pay more than they mine, the same as no business can run at a loss. Any pool that claims to pay more than they earn should be avoided completely, especially one that has a proven shady background. Don't fall for it.

My first payment from WestHash today for 5 hours of mining was almost double what I would have gotten from 24 Hours of PPS payouts. No illusion as the payment hit my wallet. People right now are paying a high amount for the hash rate to mine a new coin. Hope this last a while longer but will slow down soon I am sure.

 

[jonnybravo0311]

These pools you mention are giving you the illusion that you are getting overpaid - that's all it is, an illusion. No pool can pay more than they mine, the same as no business can run at a loss. Any pool that claims to pay more than they earn should be avoided completely, especially one that has a proven shady background. Don't fall for it.

My first payment from WestHash today for 5 hours of mining was almost double what I would have gotten from 24 Hours of PPS payouts. No illusion as the payment hit my wallet. People right now are paying a high amount for the hash rate to mine a new coin. Hope this last a while longer but will slow down soon I am sure.

 

Yeah, people are paying out the wazoo to mine GAW's new XPY.  Those of you who have rigs for rent are making a killing right now .  Supposedly the PoW mining stage will be completed on 12/19, so enjoy it while it lasts!

[aurel57]

These pools you mention are giving you the illusion that you are getting overpaid - that's all it is, an illusion. No pool can pay more than they mine, the same as no business can run at a loss. Any pool that claims to pay more than they earn should be avoided completely, especially one that has a proven shady background. Don't fall for it.

My first payment from WestHash today for 5 hours of mining was almost double what I would have gotten from 24 Hours of PPS payouts. No illusion as the payment hit my wallet. People right now are paying a high amount for the hash rate to mine a new coin. Hope this last a while longer but will slow down soon I am sure.

 

Yeah, people are paying out the wazoo to mine GAW's new XPY.  Those of you who have rigs for rent are making a killing right now .  Supposedly the PoW mining stage will be completed on 12/19, so enjoy it while it lasts!

Yes its crazy right now...

Paying to Miners   0.0620 BTC/TH/Day
Hashing speed   690518.8646 TH/s
Bitcoin mining profit   0.0126 BTC/TH/Day
WestHash mining profit above Bitcoin mining   392.2421 %

I am thinking this is why you see some pools with such low hash rates and missing miners right now...

[CHAOSiTEC]

These pools you mention are giving you the illusion that you are getting overpaid - that's all it is, an illusion. No pool can pay more than they mine, the same as no business can run at a loss. Any pool that claims to pay more than they earn should be avoided completely, especially one that has a proven shady background. Don't fall for it.

My first payment from WestHash today for 5 hours of mining was almost double what I would have gotten from 24 Hours of PPS payouts. No illusion as the payment hit my wallet. People right now are paying a high amount for the hash rate to mine a new coin. Hope this last a while longer but will slow down soon I am sure.

 

Yeah, people are paying out the wazoo to mine GAW's new XPY.  Those of you who have rigs for rent are making a killing right now .  Supposedly the PoW mining stage will be completed on 12/19, so enjoy it while it lasts!

Yes its crazy right now...

Paying to Miners   0.0620 BTC/TH/Day
Hashing speed   690518.8646 TH/s
Bitcoin mining profit   0.0126 BTC/TH/Day
WestHash mining profit above Bitcoin mining   392.2421 %

I am thinking this is why you see some pools with such low hash rates and missing miners right now...

in 6 hours i will have earned in 24 hours, what i normally earn in 5 days...

[o_solo_miner]

Well Well, my miner runs at 0,393€ per Hour Profit and i have to pay 0,29€ per KW/h.
The First Time that my miner generate a real Profit of 0.10€ per Hour.

Thank's Aurel57 for the message!

I mine at the nicehash side, it is "beside" germany in the netherland.


Edit: sorry Kano, put the miner away for a while...
       n.b.: 1 KW/h in the netherland minerfarm is 0.15€ ... i can dream of it..

[aurel57]

Well Well, my miner runs at 0,393€ per Hour Profit and i have to pay 0,29€ per KW/h.
The First Time that my miner generate a real Profit of 0.10€ per Hour.

Thank's Aurel57 for the message!

I mine at the nicehash side, it is "beside" germany in the netherland.

No Problem  o_solo_miner get it while you can as it will not last.

EDIT: price is still climbing.

[o_solo_miner]

 
put my 3 Ant's (Undervoltet) on now.
Quick Calculation:

400 GH/s (545 Watt's) per 24H = 13,08 KWW/h  / 0,29€ per KW/h => 3,7932 € to pay Elec.
400 GH/s => 0,0576 (24H) BTC => 16,3584 €

16,36€ - 3,80€ = 12,56 € WIN per Day

If that last for 24H I couldn't belive it.

How long will that goes? hope a few day's.

[aurel57]

put my 3 Ant's (Undervoltet) on now.
Quick Calculation:

400 GH/s (545 Watt's) per 24H = 13,08 KWW/h  / 0,29€ per KW/h => 3,7932 € to pay Elec.
400 GH/s => 0,0576 (24H) BTC => 16,3584 €

16,36€ - 3,80€ = 12,56 € WIN per Day

If that last for 24H I couldn't belive it.

How long will that goes? hope a few day's.

Its gone even higher now. This could last a few more days!

[o_solo_miner]

my invest in the 3 Ant S1 was in total 160,00 €.
the PSU is a Server PSU with 930 Watt at about 30,00 €
If that keep going, i will return my Invest (what i never thought of!)

For me it can stay forever, i will use the NH for paying elec. and the rest solo mining  until i solve my first
block (goal).
 

Edit: it is 01:43 (@night) in ger. i wait for the first payout (5H) and then sleep.

[aurel57]

my invest in the 3 Ant S1 was in total 160,00 €.
the PSU is a Server PSU with 930 Watt at about 30,00 €
If that keep going, i will return my Invest (what i never thought of!)

For me it can stay forever, i will use the NH for paying elec. and the rest solo mining  until i solve my first
block (goal).
 

Edit: it is 01:43 (@night) in ger. i wait for the first payout (5H) and then sleep.

I had my last payout about 2 1/2 hours ago so next payout should be in another 3 1/2 hours.

[o_solo_miner]

found out the p= function, verry good idea.
Now i have to tweak linux to switch 2 of 3 off if that is triggerd and i am fine...

I go to bed, tomorrow in a few hours work...... good night

[armedmilitia]

Guys, I've been hanging in IRC and it looks like the new altcoin thats causing the huge spike in profitability is...

   wait for it...

PAYCOIN! Brought to you by the wonderful folks at GAW...   

Looks like all the folks from hashtalk are buying up the contracts in order to mine the new GAW altcoin. To all you newbs in here, don't buy these mining contracts--prices are way inflated.

[o_solo_miner]

  First Payout received, it is nearly the balance iv'e got since i startet mining in less then 24H.
How was that a year or two ago, i missed it. 

Nice!

[lowbander80]

The reason for paying more is because they rent the equipment
Off-course this will be for short period but enjoy as it lasts.
Turned some Ghs  there myself...