Quote from: anthony27boo on June 01, 2015, 03:08:37 PM

For those of you not so ideologically committed to scrypt.cc and can't listen to reason, this is how the scam works:

The average person comes across scrypt.cc and sees they mine "the most profitable scrypt coins" and they think, well, with one coin like Bitcoin, difficulty increases and you make less over time. By switching coins, you'll be way more profitable!

So here is an example of a very profitable scrypt coin:

BBQ Coin: 60,480 coins produced a day; nethash=610 mhs; 610,000 khs nets 30,240 coins per day valued at .1273104 BTC; paying .00001000 per Khs gives a 47 day ROI WITHOUT ELECTRICITY costs. With electricity, ROI is closer to 80 or 85 days.

Sounds decent, right?

But these smaller coins don't produce that much btc value a day. So let's say we really like BBQ coin and commit a further 610,000 Khs. Now we have 1.2 million Khs out of a total nethash of 1.8 million Khs. We have 66.66% of the network hashpower and we'll get roughly 66% of the rewards. So we get .16972615 btc a day. But our total investment is 1.2 million Khs x .00001000 per Khs = 12 btc. Now our ROI is 70 days without electricity instead of 47. That's diminishing returns. For a small coin with a small network hashrate, the more hashpower you commit, the less total btc value it produces per unit of hashpower.

Now, this is not the "scam" part. The scam comes in with scrypt.cc paying out in excess of 50 Bitcoins per day with ROIs ranging from 2-4 months. The historical data on scrypt coins is available. Anyone that's willing to do the research can see for themselves that a 2 month ROI between Feb and Apr of this year at scrypt.cc was impossible. Even using the cost per Khs of scrypt.cc's fake hashpower, it could not be done. There are not enough small profitable coins that could produce that much btc that fast without diminishing returns setting in. A large scale scrypt mining operation is forced to commit a large amount of its hashpower to litecoin. Go ahead and take a look at how profitable litecoin has been this year and then ask yourself if a 2 month ROI was really ever possible or even if the current scrypt.cc ROI is possible.

You have a major loop hole in your argument, you only considered LTC and BQC, you didn't consider Dogecoin and all the other coins in the world of scrypt. You do know that the "most profitable" scrypt coin to BTC constantly changes right? One moment is LTC, and the next moment is Doge, and the next moment after that might be some other coins.