Prohashing Mining Pool Forums

Steve Sokolowski wrote:
Here are some pros and cons:

Pros:

• Project is profitable right now
• The very optimistic scenario (profit remaining the same) can generate a ridiculous amount of money
• Analysis has revealed little competition and pools that do exist seem to be unable to invest the money that we can to get ahead of them
• Project allows for a more flexible schedule
• It would be great to be able to provide a better service quality for customers just because they deserve it
• Unlike other businesses, this is still a private company, so nobody else gets a cut, and there would be no need to give away shares to investors because we can spend our own money

Cons:

• This job isn't as fun or socially rewarding as my current job and requires more work
• Unknown legal risks (this may not be an issue once a lawyer is consulted)
• The last three bubbles have seen big shakeouts after the crash and few miners survived
• The pessimistic scenario of BCC falling and being unable to expand into Dagger-Hasimoto results in only a 30% raise over current salary - insufficient to justify the risk taken if that happens
• Many people involved with cryptocurrency are shady characters and it is not clear what level of manipulation in the marketplace is occurring
• It is uncertain whether single-core hardware is advanced enough to ever be able to produce software to expand significantly (this is one of the areas still under investigation)
• There's a huge amount of pressure being responsible for someone's livelihood when you hire them
• Still investigating whether it's possible that customers who have been turned away by bugs may never return, making it too late to expand
• It may be impossible to prevent all types of DDoS attacks (research is still being performed into this possiblity)
• Bugs could cause enormous legal liability if payouts are made to the wrong people and cause the pool to go bankrupt

As you can see, many of these "cons" are issues that will likely be eliminated with more research as it is performed over the coming days - that's why we're doing the investigation.

As I read and re-read this, it seems that most of these points are concerning the hiring of additional staff. Right now, we don't care one way or the other how the pool gets stabilized, just that it happen yesterday. As I write this, Prohashing is DOWN and my ant farm is stuck milking bitcoin from NiceHash while the Titan mines 3-5 other pools, which depended largely on the vast amount of data that you provide thanks to your stance on transparency. I'd like to resume that ASAP, but some downtime followed by smooth operation is preferable to a rushed band-aid and more problems.

This pool should support the miners who actually own equipment. Letting NiceHash renters profit from all of your hard work is precisely what is stabbing you (and us) in the foot right now. At the very least, it should be unprofitable for these "crash miners" to dump ridiculous amounts of hash power on the pool and effectively steal the profits that rightfully belong to the miners who run here 24/7 ... Let them find somewhere else to mine.

Thanks to everyone who replied. Unfortunately, there are a lot of bugs and I don't have time to respond to everything right now, but I'll just say that I've read all the concerns and that we're continuing to perform the research to get more information. After that, we'll schedule an appointment with a lawyer and will of course keep everyone informed.

S3KshuN8 wrote:

Steve Sokolowski wrote:
Here are some pros and cons:

Pros:

• Project is profitable right now
• The very optimistic scenario (profit remaining the same) can generate a ridiculous amount of money
• Analysis has revealed little competition and pools that do exist seem to be unable to invest the money that we can to get ahead of them
• Project allows for a more flexible schedule
• It would be great to be able to provide a better service quality for customers just because they deserve it
• Unlike other businesses, this is still a private company, so nobody else gets a cut, and there would be no need to give away shares to investors because we can spend our own money

Cons:

• This job isn't as fun or socially rewarding as my current job and requires more work
• Unknown legal risks (this may not be an issue once a lawyer is consulted)
• The last three bubbles have seen big shakeouts after the crash and few miners survived
• The pessimistic scenario of BCC falling and being unable to expand into Dagger-Hasimoto results in only a 30% raise over current salary - insufficient to justify the risk taken if that happens
• Many people involved with cryptocurrency are shady characters and it is not clear what level of manipulation in the marketplace is occurring
• It is uncertain whether single-core hardware is advanced enough to ever be able to produce software to expand significantly (this is one of the areas still under investigation)
• There's a huge amount of pressure being responsible for someone's livelihood when you hire them
• Still investigating whether it's possible that customers who have been turned away by bugs may never return, making it too late to expand
• It may be impossible to prevent all types of DDoS attacks (research is still being performed into this possiblity)
• Bugs could cause enormous legal liability if payouts are made to the wrong people and cause the pool to go bankrupt

As you can see, many of these "cons" are issues that will likely be eliminated with more research as it is performed over the coming days - that's why we're doing the investigation.

As I read and re-read this, it seems that most of these points are concerning the hiring of additional staff. Right now, we don't care one way or the other how the pool gets stabilized, just that it happen yesterday. As I write this, Prohashing is DOWN and my ant farm is stuck milking bitcoin from NiceHash while the Titan mines 3-5 other pools, which depended largely on the vast amount of data that you provide thanks to your stance on transparency. I'd like to resume that ASAP, but some downtime followed by smooth operation is preferable to a rushed band-aid and more problems.

This pool should support the miners who actually own equipment. Letting NiceHash renters profit from all of your hard work is precisely what is stabbing you (and us) in the foot right now. At the very least, it should be unprofitable for these "crash miners" to dump ridiculous amounts of hash power on the pool and effectively steal the profits that rightfully belong to the miners who run here 24/7 ... Let them find somewhere else to mine.

Come on bro! I (we) am renter who also appreciate PH greatly. This is the first place I can make some profit after trying so many pools. You should know that not anyone can affort a mining rig and renter also help pool in some aspects for sure.
If the Brothers agree that renters are causing trouble to the pool, I am happy to bare a higher fee than miner. Just keep it works for all! Thank you.

lightstockchart wrote:

S3KshuN8 wrote:

Steve Sokolowski wrote:
Here are some pros and cons:

Pros:

• Project is profitable right now
• The very optimistic scenario (profit remaining the same) can generate a ridiculous amount of money
• Analysis has revealed little competition and pools that do exist seem to be unable to invest the money that we can to get ahead of them
• Project allows for a more flexible schedule
• It would be great to be able to provide a better service quality for customers just because they deserve it
• Unlike other businesses, this is still a private company, so nobody else gets a cut, and there would be no need to give away shares to investors because we can spend our own money

Cons:

• This job isn't as fun or socially rewarding as my current job and requires more work
• Unknown legal risks (this may not be an issue once a lawyer is consulted)
• The last three bubbles have seen big shakeouts after the crash and few miners survived
• The pessimistic scenario of BCC falling and being unable to expand into Dagger-Hasimoto results in only a 30% raise over current salary - insufficient to justify the risk taken if that happens
• Many people involved with cryptocurrency are shady characters and it is not clear what level of manipulation in the marketplace is occurring
• It is uncertain whether single-core hardware is advanced enough to ever be able to produce software to expand significantly (this is one of the areas still under investigation)
• There's a huge amount of pressure being responsible for someone's livelihood when you hire them
• Still investigating whether it's possible that customers who have been turned away by bugs may never return, making it too late to expand
• It may be impossible to prevent all types of DDoS attacks (research is still being performed into this possiblity)
• Bugs could cause enormous legal liability if payouts are made to the wrong people and cause the pool to go bankrupt

As you can see, many of these "cons" are issues that will likely be eliminated with more research as it is performed over the coming days - that's why we're doing the investigation.

As I read and re-read this, it seems that most of these points are concerning the hiring of additional staff. Right now, we don't care one way or the other how the pool gets stabilized, just that it happen yesterday. As I write this, Prohashing is DOWN and my ant farm is stuck milking bitcoin from NiceHash while the Titan mines 3-5 other pools, which depended largely on the vast amount of data that you provide thanks to your stance on transparency. I'd like to resume that ASAP, but some downtime followed by smooth operation is preferable to a rushed band-aid and more problems.

This pool should support the miners who actually own equipment. Letting NiceHash renters profit from all of your hard work is precisely what is stabbing you (and us) in the foot right now. At the very least, it should be unprofitable for these "crash miners" to dump ridiculous amounts of hash power on the pool and effectively steal the profits that rightfully belong to the miners who run here 24/7 ... Let them find somewhere else to mine.

Come on bro! I (we) am renter who also appreciate PH greatly. This is the first place I can make some profit after trying so many pools. You should know that not anyone can affort a mining rig and renter also help pool in some aspects for sure.
If the Brothers agree that renters are causing trouble to the pool, I am happy to bare a higher fee than miner. Just keep it works for all! Thank you.

OK, I can appreciate your position. I run a Titan and a small Ant farm, and not all of that is running here, for obvious reasons. I'm not sure about everyone else, but the profits here aren't too bad in general, and the quality of the pool capabilities is literally in a class by itself. I only worry that I am unable to tip Steve and Chris more than 2% at least until ROI happens for me. Expect a party on that day...

Here's what I propose... Focus on a more advanced bitconnect coin strategy. Each miner puts in 1% to the pool's shared, staking wallet, with renters paying a higher proportion to this wallet based on how many GH/s they are dumping onto it. Then, at the end of the day, schedule a bit of downtime if necessary, and pay hardware operators out of that pool should they choose not to stake in it. Renters could get their stakes back only after the situation corrects itself naturally.

Addendum: If people want to rent mining rigs, why can't the pool be altered further to let them rent directly from us, and just leave the whole NiceHash part out of the equation entirely? Just saying...

JKDReaper wrote:I think they know my feelings on investing so I'll skip over that, but I would like to comment on the "hash rate was cut in half" part. Yes it was reduced drastically, but I think a bigger majority if those who switched pools left more because they weren't sure they were being credited, with the balanced not updating for what, 10+ hours. Yes, profitability was down, but not as bad as many may have predicted given that a HUGE portion of the coins weren't available. So take that into consideration also when continuing your evaluation.

Anyway, thx again for the face-to-face.

Jason (JKDReaper)

This. A lot of people leave the pool when they aren't sure if shares are being credited. I've be around long enough to know that PH isn't going to rip me off when these situations occur, but not everyone has that same mindset. I'd guess a significant portion of that "half the hash rate" left simply because they weren't chancing mining with no credit being given.

S3KshuN8 wrote:Addendum: If people want to rent mining rigs, why can't the pool be altered further to let them rent directly from us, and just leave the whole NiceHash part out of the equation entirely? Just saying...

Because NiceHash is operating illegally without a money transmitting license, and we don't want to do that.

A money transmitter is defined by FinCEN as a business that "receives and transmits" money. We don't receive deposits, so we don't need a money transmitting license. NiceHash both receives deposits and allows withdrawals, making them a money transmitter.

S3KshuN8 wrote:

lightstockchart wrote:

S3KshuN8 wrote:
As I read and re-read this, it seems that most of these points are concerning the hiring of additional staff. Right now, we don't care one way or the other how the pool gets stabilized, just that it happen yesterday. As I write this, Prohashing is DOWN and my ant farm is stuck milking bitcoin from NiceHash while the Titan mines 3-5 other pools, which depended largely on the vast amount of data that you provide thanks to your stance on transparency. I'd like to resume that ASAP, but some downtime followed by smooth operation is preferable to a rushed band-aid and more problems.

This pool should support the miners who actually own equipment. Letting NiceHash renters profit from all of your hard work is precisely what is stabbing you (and us) in the foot right now. At the very least, it should be unprofitable for these "crash miners" to dump ridiculous amounts of hash power on the pool and effectively steal the profits that rightfully belong to the miners who run here 24/7 ... Let them find somewhere else to mine.

Come on bro! I (we) am renter who also appreciate PH greatly. This is the first place I can make some profit after trying so many pools. You should know that not anyone can affort a mining rig and renter also help pool in some aspects for sure.
If the Brothers agree that renters are causing trouble to the pool, I am happy to bare a higher fee than miner. Just keep it works for all! Thank you.

OK, I can appreciate your position. I run a Titan and a small Ant farm, and not all of that is running here, for obvious reasons. I'm not sure about everyone else, but the profits here aren't too bad in general, and the quality of the pool capabilities is literally in a class by itself. I only worry that I am unable to tip Steve and Chris more than 2% at least until ROI happens for me. Expect a party on that day...

Here's what I propose... Focus on a more advanced bitconnect coin strategy. Each miner puts in 1% to the pool's shared, staking wallet, with renters paying a higher proportion to this wallet based on how many GH/s they are dumping onto it. Then, at the end of the day, schedule a bit of downtime if necessary, and pay hardware operators out of that pool should they choose not to stake in it. Renters could get their stakes back only after the situation corrects itself naturally.

We did consider creating a staking pool as part of the potential expansion plans, but ruled it out because it requires a money transmission license. Unlike now, we would have to receive deposits in order to run a staking pool, and a money transmitter is defined as a business that "receives and transmits" money. The business is not profitable if a license is required because it would cost between one and five million dollars to get licensed.

However, one way the license requirements could be bypassed is if only mined money is allowed to be staked. That way, we would not be receiving money and would not be operating a money transmitting business.

Well Steve, obviously we dont want you to go out and stroke the Fincen and feed them with enough money to run a small country.. Why the heck would you want to transmit Fiat here?? Why in the .... We are dealing with crypto here, we want to run our machines and get rewarded cryptos, cryptos yesterday, today and tomorrow.. Ofcourse you can not fiddle around with USD. The US think each of that each of it's pennies are sovereign pieces of USA. = Stupid to hold, handle, or transfer, or the US take it on their own right to come after you for whatever reason they can come up with.

Not the coherent post but damn it fueled me Steve, really...

1-5 million USD, that is absurd, you could turn that amount around on interest and live life comfortable, without economic worries..
Seriously my two dear brothers, this is your hobby? your having a hobby you dont believe in? that doesnt make sense.
Fix this problems now please and become the best pool in existance. all i see is a lot of posts theorising or postponing, that is what i picked up since i
joined. You got a winning concept here, dont start to stagger or get lost now... You are doing so well.