This is an AWESOME idea! I was curious though, do you really make more it being converted to BTC right away or mining the coins directly? Anyone with some feedback would be greatly appreciated.
The last time I had lots of miners running, I was mining coins directly (first with
CryptoSwitcher, then with
MinerSwitcher) and exchanging them manually. With transaction fees from my altcoin wallets to the exchange, conversion fees at the exchange, and transaction fees from the exchange to my Bitcoin wallet, they would've all added up to a decent chunk of mining revenue. With many of these (especially the transaction fees) being fixed fees instead of percentages, the effective percentage of fees would be even higher. I also hadn't gotten around to automating the actual altcoin-to-BTC exchange process, so there was a bit of a time suck involved in periodically logging into the exchange, sending it funds, waiting for the funds to appear, putting in bids, etc. (I also tended to want to drive the bid up, so sales weren't likely to go through immediately.)
While I haven't yet run the numbers to quantify it, I suspect that if BTC is your goal, a service such as NiceHash is likely to work out better for a small-time operator like me. Economies of scale work in their favor...when they go to exchange altcoins for Bitcoin, your holdings are sent along with everyone else's and processed in one transaction. That's one transaction fee to send to the exchange and one fee to receive the results back. It seems intuitive that this should result in more BTC in your wallet. Whether it actually does, of course, would be an interesting test to run.
One way to minimize the impact of transaction fees if you mine directly would be to have your altcoin proceeds sent directly to exchange accounts. Not all pools are compatible with this approach, though; in particular, any arrangement in which miners are paid out of a coinbase transaction (P2Pool, Eligius, etc.) is likely not going to work with an exchange wallet. Beyond that, keeping substantial funds in an exchange wallet has never been a good idea.