Quote from: comeonalready on March 16, 2014, 04:06:55 AM

Quote from: comeonalready on March 16, 2014, 03:52:48 AM

Quote from: FrankieSaysRelax on March 16, 2014, 03:38:44 AM

The multipool works off taking advantage of arbitrage opportunities. There is a finite # of arbitrage opportunities given that large dumps drop prices. There are also a finite number of buyers (that doesn't increase proportionately to the sellers in this case). The smaller the dumps, the higher the price of the sell. It is marginal but still an increase nonetheless.

Yes, that would certainly be irrefutable if we were the only multipool. But we are most certainly not, and if you review our earnings log you will see that we are still mining litecoin at times suggesting that opportunities for arbitrage are few and even then the margins are very slim. I would propose that any advantage for us would be very small and indistinguishable from the effects of the "luck" component in mining. At current, a much greater advantage to us is that dogecoin variable block rewards are still on the table. I wonder what will happen to our earnings rate in a couple days? And what our earnings log will look like then?

In other words, the profitability of arbitrage is inversely proportional to the efficiency of the market. In a 100% efficient market, there are zero opportunities for arbitrage. The rise of multipools, at least within the scrypt mining domain, has led to an exceedingly efficient market, thereby reducing the value of arbitrage within the scrypt market. For arbitrage to continue to yield profits, scope must be expanded outwards from scrypt into scrypt adjacent markets There are currently tremendous market inefficiencies in that realm.

scrypt-n multipool would be a good start