My hypothesis: Cloud Hashing and future dangers

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One reason is that the hirer is risking which coin to mine. This means, say like an auction house, the renters always get their cut but don’t risk loosing everything speculating on coin value.

They can also sell shares, which means they can potentially invest in new equipment.

It is a lower risk business model to run the centre, cheaper by economy of scale. Do what you know or get burnt to learn.

mirrax

Cloud mining is fun, you trade GH/s and mine with purchased GH/s…I love it.

Risk is minimized, you dont have to buy hardware and you can sell your GH/s anytime.

I think the point is being overlooked here.
I am talking about potential abuses of power in the future as far as obtaining large parts of crypto networks.

visualize it…
Few years in the future, bitcoin grabs the worlds attention, the world starts using cryptos.
Different currencies emerge as well as nation states implementing their own.
New currencies are made all the time.
Cloud mining with all its appeal has become huge for those wanting to mine without dumping mad cash.
sounds great right? Mine certain coins for gigs n get paid, low risk, no hardware n drivers, just click n earn.
MASS APPEAL

But what happens when…
These cloud miner hosts are teh primary source of mining?
home mining will become inexpensive and outdated as far as profits.
As the crypto market advances
And[b] new currencies [/b]are mined, these cloud hosts will be[b] doing all or most of the mining[/b]

This places these cloud companies with all the mining power, which is of course how we execute the dreaded 51% attack. If these buisnesses start mining for everyone, the network becomes decentral and can discredit or ruin the entire movement.
Again, I am not speaking bout the individual, Im speaking about the future ability for cloud mining companies to literally OWN these (now) decentral currencies.
Think about it. Companies are stuffing massive amounts of computers into rooms to cloud mine.
Especially as new better currencies enter the market as cloud mining becomes popular, these hashing machines will be the majority of how miners mine.

Placing THIS MUCH power in the hands of companies that wanna sell you awesome deals for the ability to hash is too much of a risk to the crypto networks. This is how 51% attacks will happen in the future.
This movement becomes less about what people want and more about entities with m[b]assive resources to corner this new market.[/b]

[u]When we give our mining capibilities to a few entities, we hand over the power cryptos have.[/u]
i know youre all pleased with the hash rates, but what cost in the future?

Cloud mining looks amazing and could yield me money, hard not to hop on it.
Does anyone else see this correlation between cloud mining and market domination by a few organizations with the resources to implement said plans??

forgot to add this

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Egnar

[quote name=“another_user” post=“41031” timestamp=“1386408310”]
i dont get the whole cloud mining thing, if it’s profitable why do they rent them out? why not keep the profits for themselves? it seems to be unbelievable.
[/quote]
It’s actually pretty simple. If I spend a ton of money on mining crypto I now have to pick which crypto I want to mine. If I choose wrong, I’m bleeding money. Even if I choose the best option, if its prices start to tank, I’m bleeding money. Lets say I start mining BTC at $1,000 = 1 and when I need to cash some out to pay bills it’s at $600 which may not cover my electricity cost, I’ve lost money. [These are all hypothetical numbers, no real math in them at all]. By offering people to rent out your servers you’re likely making much less overall profit if the coin of your choice goes UP or stays the same, but, it’s a guaranteed profit stream in a stable currency.

[quote] but, it’s a guaranteed profit stream in a stable currency.[/quote]
Yes, sounds like a win win for the miner n the cloud hosts.
We are paying for their hardware use, but its gonna be huge chunks of the networks in these places that house the cloud miners.

The devil always comes with good and dandy promises.
People will be bought with coin while they gobble up the network.

say no to cloud hashing.

mirrax

There was very similar, basically the same issue already discussed a while ago:

[url=http://forum.feathercoin.com/index.php/topic,4316.msg33317.html#msg33317]http://forum.feathercoin.com/index.php/topic,4316.msg33317.html#msg33317[/url]

Ernesto

:)
I believe that the value of virtual currency is given by the holder.
If you have only one possessing more than half the processing power, or monopolizes, that currency loses value.

I believe that some governments are using resources lose value to virtual currency.
No wonder, does not surprise me, it’s a struggle for economic and political power of the people. ;D

I think an excellent PR campaign should be bringing awareness of this future potental hazard.
Economists foresee these kind of pitfalls n prepare appropriately.
As a member and supporter of FTC I think we should really make this a selling point.
Being only ftc to have the dreaded 51% attack, we should act as the experienced in the cryptoworld, safeguarding and learning from the experience.
For all we know, it could have been cloud computing to do it?
Either by the will of the company who owns machines or a malicous hacker harvesting massive hashing power.

What a way to bring faith in feathercoin, First hit with 51%, first to develope strategies for preventing it.

Im doing some art for FTC originals, it would go nicely. Fresh image, fresh attitude. I hear others accuse FTC of being a scam bla bla bla. Who care right?
Either way, the feather is fast and efficient, and theres lots of em. So why dont we consider leading the open debate about how 51% can be prevented for the other coins. Could bring mucho credibility and more faith in the coin. Win / Win

Lets be the face of experience and preventative measures.
Cloud hashing is favored among alot of us, but if we establish the argument first, we could change some minds.

Faith in the feather!
ps some art i wanna incorporate
I do alota angels in this style.
Angels…feather…goes well

[attachment deleted by admin]

Awesome love the style of that second one, although I’m not sure if the naked chick would be the best representation, but she is quite delightful so thank you for that ;)

Thank you
I am working on a few now
more PR friendly

Pryderi

[quote name=“mirrax” post=“41181” timestamp=“1386429050”]
Cloud mining is fun, you trade GH/s and mine with purchased GH/s…I love it.

Risk is minimized, you dont have to buy hardware and you can sell your GH/s anytime.
[/quote]

I’m trying to get into cloudhashing, but keep finding shady posts about it being a scam. Do you know, from experience, a 100% legit cloudsharing company?

algo160

[quote name=“subcapital” post=“41232” timestamp=“1386436472”]
I think the point is being overlooked here.
I am talking about potential abuses of power in the future as far as obtaining large parts of crypto networks.

visualize it…
Few years in the future, bitcoin grabs the worlds attention, the world starts using cryptos.
Different currencies emerge as well as nation states implementing their own.
New currencies are made all the time.
Cloud mining with all its appeal has become huge for those wanting to mine without dumping mad cash.
sounds great right? Mine certain coins for gigs n get paid, low risk, no hardware n drivers, just click n earn.
MASS APPEAL

But what happens when…
These cloud miner hosts are teh primary source of mining?
home mining will become inexpensive and outdated as far as profits.
As the crypto market advances
And[b] new currencies [/b]are mined, these cloud hosts will be[b] doing all or most of the mining[/b]

This places these cloud companies with all the mining power, which is of course how we execute the dreaded 51% attack. If these buisnesses start mining for everyone, the network becomes decentral and can discredit or ruin the entire movement.
Again, I am not speaking bout the individual, Im speaking about the future ability for cloud mining companies to literally OWN these (now) decentral currencies.
Think about it. Companies are stuffing massive amounts of computers into rooms to cloud mine.
Especially as new better currencies enter the market as cloud mining becomes popular, these hashing machines will be the majority of how miners mine.

Placing THIS MUCH power in the hands of companies that wanna sell you awesome deals for the ability to hash is too much of a risk to the crypto networks. This is how 51% attacks will happen in the future.
This movement becomes less about what people want and more about entities with m[b]assive resources to corner this new market.[/b]

[u]When we give our mining capibilities to a few entities, we hand over the power cryptos have.[/u]
i know youre all pleased with the hash rates, but what cost in the future?

Cloud mining looks amazing and could yield me money, hard not to hop on it.
Does anyone else see this correlation between cloud mining and market domination by a few organizations with the resources to implement said plans??
[/quote]
This can be fixed:
EXTREMLY Limit power with EXTREMLY hard algos
OR… Give each miner on the network a equal cap of max hashrate!
FTC is going to go up in flames is ASICs or FPGAs come out.

TrollboxChamp

Your fears are kindve coming true already. ghash.io has way too much hashing power.

Kevlar

[quote name=“TrollboxChamp” post=“53024” timestamp=“1389993690”]
Your fears are kindve coming true already. ghash.io has way too much hashing power.
[/quote]

ghash.io is a pool, not a cloud mining company. The danger was from too many miners on it, which was solved within 48 hours through a community awareness campaign.

Fortunately the danger is entirely immagined: Cloud hashing can be pointed at any pool. Individuals still vote with their dollar. Therefore there’s no danger that a group of individuals (cloud hash purchasers) will give another individual (a pool operator) enough power to consistently devalue their investment. Such actions would not be rational at all. You all can sleep soundly at night again, cloud hashing won’t destroy the network. Promise.

It seems the blogging community is now looking into this.
This is a real danger to the future of the crypto market. This could have massive negative effects on our holdings.
As Featherpeeps, I think if any community were to rustle the feathers of the cloud mining industry, it would be the people
of Feathercoin, being having experience witha 51 percent attack…This could help bring more credibility to feathercoin and spread
the name and use of the coin…

www.coindesk.com/bitcoin-miners-ditch-ghash-io-pool-51-attack/

wrapper

You don’t need 51% to attack, unfortunately.

Pryderi, I do not have personal experience with cloud hashing.
And yes it is appealing to me. Seems…
a. convenient
b. cheap
c. yields coin!
d. no End - boss tier electric bills.

I keep noticing replies to this post about how interested alot of you about cloud hashing.
This post and its intentions are to raise the question:

Is this a crypto- miracle?
or a trojan horse?

Any group with the means can control a decent percentage of future markets, given a few years.

This is strictly a gut feeling and I’m going on it…
But now I face the question “should I capitalize on this and turn a blind eye?”
I am conflicted. Any help or suggestions? If I talk against it but use it, I would feel like a complete tool.

Thx

zerodrama

[quote name=“Kevlar” post=“53055” timestamp=“1389997914”]
[quote author=TrollboxChamp link=topic=5580.msg53024#msg53024 date=1389993690]
Your fears are kindve coming true already. ghash.io has way too much hashing power.
[/quote]

ghash.io is a pool, not a cloud mining company. The danger was from too many miners on it, which was solved within 48 hours through a community awareness campaign.

Fortunately the danger is entirely immagined: Cloud hashing can be pointed at any pool. Individuals still vote with their dollar. Therefore there’s no danger that a group of individuals (cloud hash purchasers) will give another individual (a pool operator) enough power to consistently devalue their investment. Such actions would not be rational at all. You all can sleep soundly at night again, cloud hashing won’t destroy the network. Promise.
[/quote]

Rational implies eyes on the ball. Easy service equals less attention. Hence middlecoin.

Cloud hashing has negligence issues.

And of course there’s always the suicidal attackers who want to see alts gone.