Would you care to explain? What's wrong with arbitrage?
I would agree that renting on Nicehash hasn't been attractive lately but that just means that mining is. Nicehash is also
the only place you can mine and know exactly what you will be paid. The are no issues with luck, orphans, exchange risk, etc.
Edit: Mining is attractive on some algos, but not lyra2v2. This would seem a good opportunity for arbitrage (this is
essentially what SP pointed out) but the volume is too low for any real price competition among renters.
It pushes competition out of the market. That's why Neoscrypt is always about 50% below what you can get from mining the coins or using a real multipool.
Not everyone has the software, it's in a select few hands. It's not widespread, there is essentially no competition for a arbitrage bot. Even with the Nicehash bot that is publicly available it's not tweakable enough for the average person to use and it's relatively useless. So anyone that actually tries to use Nicehash eventually gets discouraged and stops using it, it just leaves the handful of arbitrage bots that keep the price artificially low.
Only exception to that is fixed orders.
I tried Nicehash once. Mined qubit. The profit on the coin I mined was around 1btc/ghash, and nicehash was only renting out for 0.2BTC.
I placed an order, and a bot came.
I placed a new order, and a bot came.
...
pushed the price to 0.7BTC and a bot came.
Then I just left my orders on the site, and some days/weeks later when the profit was gone, I could mine for 0.7BTC/GHASH and my return was around 0.3BTC /GHASH (a loss of arounc 0.4BTC/GHASH)