Quote from: chmick on August 28, 2014, 02:30:31 PM

Quote from: MemCiD on August 28, 2014, 01:12:54 PM

DON'T EVER COMPARE CEX.IO WITH ZENCLOUD, LOL.
Cex.io actually mines blocks and can prove it.

how many GHS do you have on CEX.IO ?

do you make profit out of it ?

GHS is a different animal because it is like a financial instrument in that it can be traded instantly. If you are buying GHS and thinking you will make a profit off of mining you are an idiot and you should be buying an S3 or Asicminer. If you are trading them with strategic timing it is really easy to make money. Buying GHS is essentially a bet that the price of Bitcoins will go down, selling GHS is a bet that the bitcoin price will go up. Buying GHS is kind of like a weird way to short bitcoins.

For example, a couple weeks ago when the price of GHS hit ~0.0033 I bought 100 GHS because the bitcoin price started tanking. The GHS price jumped to ~0.0039 a couple of hours later and I sold them and made over 0.06 on the trade, plus whatever I mined. Since each bitcoin was worth less, it took more them to buy GHS, thus the price per GHS jumped.

Hashlets are a completely different beast because there is no instant buy/sell marketplace. You are in it to make money from mining pure and simple. If the alt coin marketplace implodes there is no way to quickly offload your hashlets to save face, you are stuck riding the train to the bottom. Furthermore CEX has been transparent from the beginning in terms of showing that its hash power actually exists. You can look at the hashrate distribution on blockchain and see every block that it solves proving that its hashrate is indeed legit. Meanwhile GAW has completely hidden every traceable aspect of hashlets while paying out impossibly high rates.

Even the best explanations given for how ZenPool is able to consistently payout 150% do not add up (if you read the thread, GAW_CEO backs the theories up). And while they account for some of the difference, the problem is the consistency. If GAW really was using its market maker status to mine, hold and then trade strategically, some days the payout would be tiny, while others it would be huge.

This is actually the technique that was used back in the day (last December) to great success by h2odysee the admin of Middlecoin, one of the earliest multipools that exchanged earnings to bitcoins. In the beginning Middlecoin grew ridiculously fast (especially after the hashcows hack), it was the market maker of its day with a solid percentage of the total scrypt hashpower. Some days you would make less than mining litecoin, other days you would make an absolute killing when he made a strategic trade of an alt he was holding. The big days would more than make up for the bad days and it was wildly profitable compared to straight litecoin mining. After a bad streak and the rise of other multipools with better UIs and consistency (Waffle, Clever, etc), middlecoin lanquished, the admin quit and the site died. How is GAW able to use this same technique, yet every day have consistent payouts? It just doesn't make sense, especially with the alt coin markets doing so horribly these days.

One thing I haven't seen mentioned in this is thread is where is the exchange volume? We haven't been able to find the missing hashrate, maybe we can find the exchange volume? If the hashrate really is 250 ghs, the number of coins mined would be astronomical. They need to exchange them to bitcoins somewhere. Has cryptsy, bittrex or mintpal experienced huge volume growth since the hashlet launch?

(Full Disclosure I bought 15 mhs of hashlets when the price was 15.99 and I plan to ride it out to see how it goes)