Nicehash profits the same as pool mining. How?

[Papahyooie]

So I've mined on both Nicehash and direct mining in pools and whatnot. The general consensus is that you get comparatively very similar, if not better profits when it's all said and done, on Nicehash.

I was thinking the other day... how is this possible?

On Nicehash, a person buys hashing power. So obviously they're doing it to get their own crypto. So you're already splitting your mining profits in crypto between the buyer of your hashing power and your own end profit. Then of course Nicehash takes their cut. So how does that work? It seems unsustainable. Why would you sell your hashing power to someone who is paying less than what it's worth (obviously it has to be, or the buyer wouldn't make any profit) instead of just pool mining and taking home your own earnings?

And yet somehow this seems to work. What am I missing here? The only thing I can think is that the buyers of hashing power don't share in the block reward, and only get paid crypto off of the shares. Which means the miners get paid less for their shares, but share in the block reward? That still seems iffy. I just don't get it.

Anybody know the ins and outs of how Nicehash works?

 

[trog100]

i would agree the pay out is about the same.. all i know is that i am supposed to be selling my hash power to people that wish to bid for it.. the profit i make is governed by how much the buyers of hash power are prepared to pay.. which is probably governed by the price of whatever they wish to mine..

the other thing i find odd is how other altcoins (with the odd exception.) slavishly follow the price of bitcoin.. or they have been doing for the last few weeks..

i mostly mine eth on nano pool.. i am also set up to mine nicehash which i mine from time to time just to check and compare pay outs.. plus they owe me some dosh which i would like to eventually get back..

trog

 

[Papahyooie]

Right, but that's just the point.. people are paying you to mine, which means you aren't getting the profits from your mining... they are. You're just getting what you're paid (minus the cut Nicehash takes.) So you're obviously making less than the crypto itself is worth. Since you're essentially getting paid to mine it for someone else. So how in the world is pool mining (where you and the pool are the only ones taking a cut) not making more?? It doesn't make any sense.

 

[trog100]

i assume the people that pay to use other peoples hardware are prepared to pay more.. bear in mind they dont have to buy and set up their own hardware.. its cheaper than buying the coin outright i assume.. they are buying coin as an investment.. paying people that own mining hardware to mine for them must make sense else nicehash would not exist..

i mine as an investment.. some mine for a cash return.. there does seem to be a big difference.. people that pay me to mine for them are into owning coin as an investment.. not the cash return..

trog

 

[Papahyooie]

i assume the people that pay to use other peoples hardware are prepared to pay more.. bear in mind they dont have to buy and set up their own hardware.. its cheaper than buying the coin outright i assume.. they are buying coin as an investment.. paying people that own mining hardware to mine for them must make sense else nicehash would not exist..

i mine as an investment.. some mine for a cash return.. there does seem to be a big difference.. people that pay me to mine for them are into owning coin as an investment.. not the cash return..

trog

That's fair, but if that's the aim then why wouldn't they just buy coin on an exchange?

 

[trog100]

That's fair, but if that's the aim then why wouldn't they just buy coin on an exchange?

i am assuming paying someone to mine it for you works out cheaper than simply buying the coin outright.. i have never seen any figures to be honest so i dont know how much cheaper..

nicehash matches up a pool of hash sellers with a pool of hash buyers.. the buyers bid for the sellers hash power to mine for them.. the sellers takes the highest bids offered by the buyers.. if prices go up so do the bids from the buyers..

trog

ps.. i am mining eth because i think the price of eth will go up more than the price of bitcoin.. when it start to do its own thing that is..

 

[Papahyooie]

i am assuming paying someone to mine it for you works out cheaper than simply buying the coin outright.. i have never seen any figures to be honest so i dont know how much cheaper..

nicehash matches up a pool of hash sellers with a pool of hash buyers.. the buyers bid for the sellers hash power to mine for them.. the sellers takes the highest bids offered by the buyers.. if prices go up so do the bids from the buyers..

trog

ps.. i am mining eth because i think the price of eth will go up more than the price of bitcoin.. when it start to do its own thing that is..

If paying someone to mine it for you works out cheaper than buying it outright, then the miner is getting screwed, selling his hashing power for less than it's worth (if he were to mine for himself.) So one would think that one would make more by pool mining.

I'm not saying you're wrong, just trying to understand it.

 

[Outback Bronze]

From what I can see, I think it might have something to do with their auto algo?

I'm using MPH atm for a specific coin but was and pretty much always use Nicehash and this is about the only difference I can see.

Nicehash will mine the most profitable algo available where MPH will not do that.

 

[TheoneandonlyMrK]

If paying someone to mine it for you works out cheaper than buying it outright, then the miner is getting screwed, selling his hashing power for less than it's worth (if he were to mine for himself.) So one would think that one would make more by pool mining.

I'm not saying you're wrong, just trying to understand it.

The miner mints a coin , which the hash rate buyer buys , nicehash take a small percentage cut , and also receive a percentage cut of EVERY payout both to hash buyers and miners ,their cuts small so you don't notice/mind but they also optimise their earning potential and the miners by mining short lived increases in alt coins value ,therein i would wager they also effectively buy hash power too to speculate on alt coins.
Thats my take , pools average out similar but i would suggest if you were as on the ball in the optimisation of What to run on pools including dual mining you could earn more ,but it would require effort small miners wont put in tbh.

 

[Papahyooie]

From what I can see, I think it might have something to do with their auto algo?

I'm using MPH atm for a specific coin but was and pretty much always use Nicehash and this is about the only difference I can see.

Nicehash will mine the most profitable algo available where MPH will not do that.

By MPH I assume you mean MiningPoolHub? They do algo switching based on the most profitable coin too, and it seems profit is similar there. I would think you'd make more on MPH because you're not sharing a cut with the hashrate buyer... but it seems profit is almost the same. So confusing.

 

[yotano211]

I dont trust nicehash for $hit. I rather mine with some pool. I am now mining zcash since I have lots more 1080s and some 1080ti(s).
I am making about 30-40% more mining zcash than ETH. I sell the zcash and convert it to ETH. Even the 1070s that I own seem to make about 10-15% more mining zcash than ETH.

 

[trog100]

From what I can see, I think it might have something to do with their auto algo?

I'm using MPH atm for a specific coin but was and pretty much always use Nicehash and this is about the only difference I can see.

Nicehash will mine the most profitable algo available where MPH will not do that.

nicehash mostly mines eth.. or it has been doing whenever i check.. which is one of the reasons i mine eth.. it really isnt worth mining multiple coins they all need different wallets setting up and the small if any gain isnt worth the trouble..

nicehash is currently paying out roughly the same as my eth mining on nano pool.. eth ming on nano pool seems reliable requires on attention on my part and just keeps running.. when it reaches a certain figure it pays out automatically to my desktop wallet.. i cant fault it..

trog

I dont trust nicehash for $hit. I rather mine with some pool. I am now mining zcash since I have lots more 1080s and some 1080ti(s).
I am making about 30-40% more mining zcash than ETH. I sell the zcash and convert it to ETH. Even the 1070s that I own seem to make about 10-15% more mining zcash than ETH.

i tried it a few weeks back and it was about the same as eth but i will give it another go and see.. my payout from eth has dropped dramatically since the price dropped.. from near 50 dollars a day to near 20 dollars a day.. zec may not have suffered as much..

trog

 

[yotano211]

nicehash mostly mines eth.. or it has been doing whenever i check.. which is one of the reasons i mine eth.. it really isnt worth mining multiple coins they all need different wallets setting up and the small if any gain isnt worth the trouble..

nicehash is currently paying out roughly the same as my eth mining on nano pool.. eth ming on nano pool seems reliable requires on attention on my part and just keeps running.. when it reaches a certain figure it pays out automatically to my desktop wallet.. i cant fault it..

trog



i tried it a few weeks back and it was about the same as eth but i will give it another go and see.. my payout from eth has dropped dramatically since the price dropped.. from near 50 dollars a day to near 20 dollars a day.. zec may not have suffered as much..

trog

Its the not price that dropped, its the diffuclty rate that has increased like mad when ETH was 290--330 each coin, I think less than 2 months ago. ZEC differulty seems to get stable for now, it seems it hasnt increased very much. I only mine it because of the amount of 1080s that I have. I was mining ETH with 1080s, I could have earned almost double mining ZEC. I am really enjoying the nice daily profit increase. I still love ETH, so I am still holding on to ETH coins.

 

[verycharbroiled]

i know some people would buy a big chunk of hash and point it at a solo pool on the hopes of hitting a block and getting the whole block reward. and some would grab a big chunk of hash and point it at a new coin while the difficulty is low.

so its sometimes worthwhile to overpay just to get the hash power needed at that time.

 

[trog100]

Its the not price that dropped, its the diffuclty rate that has increased like mad when ETH was 290--330 each coin, I think less than 2 months ago. ZEC differulty seems to get stable for now, it seems it hasnt increased very much. I only mine it because of the amount of 1080s that I have. I was mining ETH with 1080s, I could have earned almost double mining ZEC. I am really enjoying the nice daily profit increase. I still love ETH, so I am still holding on to ETH coins.

i would have to disagree with that a little .. i have carefully watched the price of eth drop and my eth mining payout drops as the price drops.. there is almost a direct link.. the difficulty level has gone up as well of course..

i was mining 1.2 eth per month when eth was at its peak..

now the figure is .8xxx.. but its the price drop that makes by far the biggest difference.. still its on its way back up again.. says he fingers crossed..

trog