Re: [ANN] NiceHash.com - innovative professional cryptocurrency cloud mining service
After further analysis I'd HIGHLY suggest Nicehash disable their API, implement captchas for making new orders, remove the ability to modify hashpower, disallow people from refilling orders, and increase order cancellation fees to 5-10%.
As it currently stands right now Nicehash is being completely manipulated by arbitrage bots. They push other legitimate buyers out of the market by disallowing them hashpower and then push prices to the bottom by readjusting their hashpower again. This sort of manipulation leads prices to bottom out at the point where miners manually remove their hashingpower from the market because it reaches power break even prices.
This sort of manipulation is killing not only coins (as their demand fluctuates based on difficulty), but also will slowly and absolutely kill off hashing in general as it will equalize around power prices, which will further push miners out of the market as they can't make money anymore. There will be no bottom line as the amount of hashing power decreases, the amount of income increases, which will lead the abritrage bots to further push the prices down onto power break even. They will not let up, it's automated; they maximize their income, not miners. There is no ROI on arbitrage bots, there is no power prices.
Since Nicehash controls so much hashing power and is effectively the graveyard for miners before they're decommissioned it will be a endless cycle. There are currently not enough coins to deal with all the hashing power such as what's happening with Halcyon right now. If there were enough profitable coins, it'd be different as it'd outstrip the amount of hashing power on Nicehash and prices would go up, but the BTC mining market is no where close to this.
I'd suggest miners move their miners to actual coins, such as Halcyon and do some research to find coins to mine if Nicehash does not proactively try to stop arbitrage on their pool. Arbitrage/bots are not good for anyone, completely putting aside the mess that is Westhash, this is a much bigger problem and will have far reaching consequences into the future.
As it currently stands right now Nicehash is being completely manipulated by arbitrage bots. They push other legitimate buyers out of the market by disallowing them hashpower and then push prices to the bottom by readjusting their hashpower again. This sort of manipulation leads prices to bottom out at the point where miners manually remove their hashingpower from the market because it reaches power break even prices.
This sort of manipulation is killing not only coins (as their demand fluctuates based on difficulty), but also will slowly and absolutely kill off hashing in general as it will equalize around power prices, which will further push miners out of the market as they can't make money anymore. There will be no bottom line as the amount of hashing power decreases, the amount of income increases, which will lead the abritrage bots to further push the prices down onto power break even. They will not let up, it's automated; they maximize their income, not miners. There is no ROI on arbitrage bots, there is no power prices.
Since Nicehash controls so much hashing power and is effectively the graveyard for miners before they're decommissioned it will be a endless cycle. There are currently not enough coins to deal with all the hashing power such as what's happening with Halcyon right now. If there were enough profitable coins, it'd be different as it'd outstrip the amount of hashing power on Nicehash and prices would go up, but the BTC mining market is no where close to this.
I'd suggest miners move their miners to actual coins, such as Halcyon and do some research to find coins to mine if Nicehash does not proactively try to stop arbitrage on their pool. Arbitrage/bots are not good for anyone, completely putting aside the mess that is Westhash, this is a much bigger problem and will have far reaching consequences into the future.