Hashrate arbitrage | Bitcointalksearch.org

UKMiner

newbie

Activity: 8

Merit: 0

Quote from: Ploo on January 24, 2014, 05:59:42 PM

I was looking at http://dustcoin.com/ and noticed that mining some scrypt coins can be twice as profitable as mining litecoin.

Suppose that a litecoin pool operator actually gets his users to mine dogecoins or bbqcoins. He then uses the proceeds to purchase litecoins and pays them out to his miners. The end effect is that the pool operator is way better off than he would be otherwise.

Is it possible for this to be happening seamlessly without the miners not realising? When a scrypt pool miner is issued a work unit would it be possible to have them mine on a different coin than the user assumes?

I'm not too sure if it is possible to hide it, but I'm sure people are doing it. There is so much fraud around this market this would be a minor thing in the grand scheme of things.

DrG

legendary

Activity: 2086

Merit: 1035

Most BTC and LTC pools are so finely tuned currently they have little room for improvement. Other alts, DOGE for example, despite having some pool ops working their butts off, still have pretty bad reject rates, downtime, DDoS, etc.

A 212% profit on DOGE may only end up be 130% profit if the pool is skimming shares, rejecting 8%, sending to exchanges slowly, going offline without notice, etc.

anderl

hero member

Activity: 714

Merit: 500

he is better off only when there is an arbitrage opportunity. The problem is that the movment of coins to an exchange to convert to LTC and then back again wastes time that may result in a reduction in arbitrage as well as the trading and withdrawal fees that go along with it. The gain is so negligible that pool operates may not invest the time to automate the process.

AtlantisPlatform

member

Activity: 98

Merit: 10

Quote from: kalus on January 24, 2014, 11:41:43 PM

i've nver used dustcoin, but what is 'not very useful anymore' about it? it seems to be providing the same information as the other sites i use.

It is just as useful and relevant as any of them are. Same info.

kalus

sr. member

Activity: 420

Merit: 263

let's make a deal.

i've nver used dustcoin, but what is 'not very useful anymore' about it? it seems to be providing the same information as the other sites i use.

atp1916

legendary

Activity: 854

Merit: 1000

Dustcoin was left 'in the dust' a while ago... it's not very useful anymore. Coinchoose is a better alternative.

kalus

sr. member

Activity: 420

Merit: 263

let's make a deal.

middlecoin usually doesn't announce which coin they're mining, but usually you can infer which coin you're mining by the difficulty.

on the other hand, i've init mined some shitcoins with high difficulty, so i assumed at the time i was proxy-mining for someone else's benefit (the pool later went down and never returned), or i'm cracking SSL for the North Korean Army. either way, it was only a couple of computers overnight.

Ploo

full member

Activity: 125

Merit: 100

I was looking at http://dustcoin.com/ and noticed that mining some scrypt coins can be twice as profitable as mining litecoin.

Suppose that a litecoin pool operator actually gets his users to mine dogecoins or bbqcoins. He then uses the proceeds to purchase litecoins and pays them out to his miners. The end effect is that the pool operator is way better off than he would be otherwise.

Is it possible for this to be happening seamlessly without the miners not realising? When a scrypt pool miner is issued a work unit would it be possible to have them mine on a different coin than the user assumes?

Topic: Hashrate arbitrage (Read 781 times)