Tuesday, October 28, 2014

Introducing HashPool: More HashPoints, Free Genesis Hashlets

There was another pretty interesting announcement last week that may have slipped under the radar for some of you: GAW introduced HashPool, a new mining pool for Hashlet Prime -- and eventually for Zen Hashlets as well. The pool basically works the same as ZenPool, only instead of paying out in BTC it pays out in... HashPoints.

Remember a couple weeks back when the value of HashPoints was redefined from 100 Satoshi to $0.01? Well, that makes it possible to do what GAW is doing today, in that you can choose to mine the HashPoint Pool (or HashPool, depending on where you're looking at the name) and get paid in HashPoints instead of BTC. That in and of itself isn't particularly interesting, but the second aspect of the announcement holds more weight: if you mine on the HashPoint Pool, you will not have to pay maintenance fees!

That might sound a bit too good to be true, and perhaps it is, so let me explain this in more detail. Right now, while HashPoints are defined has having a value of one cent each, the only place you can currently use HashPoints... is nowhere, though presumably in the near future you'll be able to use them on the Hash Market. So, by mining at the HashPoint Pool, you are essentially agreeing to keep all of your "earnings" with GAW, currently in the form of HashPoints (in the hope of these being worth something more tangible in the future).

If you believe GAW will do "amazing things (TM)" with HashPoints in the near future, HashPoint Pool is absolutely awesome. Let me give you some numbers to explain why. Let's say you previously had an auto-buy of Zen Hashlet set up, so you get a 5% discount over the regular price. Based on my results yesterday, ZenPool paid out around 0.000378 BTC per MH (around $0.134 per MH), and then you have to pay a maintenance fee of $0.08 per MH, bringing your income down to $0.054 per MH. That's ROI of about 315 days if you're wondering, including the 5% discount.

Compare that with HashPoints: yesterday I received a payout of around 16 HashPoints per MH, with no maintenance. So in other words, the rate is theoretically three times higher (give or take) than being paid in BTC and using that to buy Hashlets. (Again, you'd be buying them at some time in the future when they're enabled on the Hash Market.)

Okay, let's step back for a minute and point out the other elephant in the corner: with the Hash Market now fully functional (as far as I can tell), no one in their right mind would pay $17.95 for a Zen Hashlet, or even $17.05. The current going rate is around $13.65, so with HashPoints you're looking at being able to buy one Zen Hashlet every 85 days. That's not "ROI" however, as in 85 days there's no guarantee you can sell the Zen Hashlet for your original purchase price. You also can't mine on the HashPoints Pool with a Zen Hashlet ("yet"), so until that happens I wouldn't necessarily recommend funneling your HashPoints into Zen Hashlets.

Hashlet Prime on the other hand is fully working with HashPoints Pool, and the Hash Market has those available in reasonable quantities for around $37 (give or take), plus you can still use the Double Dipping boost. In that case, ROI is in roughly 195 days at the current rates, but perhaps more importantly you can accrue Hashlet Primes for the future, which will likely hold more value as HashBase comes online. I guess we'll see....

To summarize: first we need to be able to use HashPoints for something -- anything! -- and second we need to be able to switch Zen Hashlets to the HashPoint pool.

Also, there's one final interesting tidbit: all new accounts at Zen Miner will receive a free Genesis Hashlet just for signing up. If you need an invite, drop me an email and I'll send you a code. (And if you decide to buy more hardware, I guess I get a commission, so please ask me for a code if you're interested in trying out mining!)

7 comments:

  1. Hello Jarred,

    Do you have in account the increase in Difficulty of BTC when you calculate the ROI´s?.

    I think the ROI results could be very different (worse).

    Anyway, Good articles!

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    1. I do not -- I suppose I should be more clear and state that these are the current "best case" ROI for the various Hashlets and other cloud mining services. Of course, BTC price can go up as well, and there are many other variables to consider, so I don't generally try to get into all the smaller details.

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  2. Jarred, the daily/weekly/monthly increase of the Dificulty, isn´t a minor detail. It change absolutely any ROI if you not have it in account. Each month the Earn/BTC is around half the before month, so for the same quantity of BTC´s, you can expect a exponential decreasing in your earnings across the time. (around half each month, for example: 10, 5, 2.5, 1,25, 0,625, etc...)

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    1. Of course it changes the ROI prospects. However, there's no telling how the difficulty will truly increase -- and in fact at some point it will almost certainly decrease instead of increasing! Difficulty basically follows price as well as the efficiency of the hardware, and unless you can predict both accurately, any guess at difficulty is just that: a guess.

      Let me give you a great couple of examples. Let's look at April to October 2013; the average increase in difficulty for BTC was 22%. Now let's look at the next six months, October 2013 to April 2014: 25%. Wow, difficulty never stops, right? But then we go the the past six months (April 2014 to October 2014): 12.5%.

      So which value is right? And what if instead of the past six months, we look at just the last month where difficulty only increased 7% per cycle -- or the last two increases of 1% and 3%! Hmmm... sounds like I need to make another post about this. :-)

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    2. Yes, lately the Dificulty seem not have a progressive increase, but anyway it have a definitive impact over ROI.

      I think what if Price of BTC not change and go up in 3 to 7 months, any system (mining or cloud hashing) will have ROI for our investments in it.

      I encourage you to do deep ROI numbers. Same as valuable and interesting comments and numbers you habitualy offer us. But this time, plese, having in account the estimated Dificulty for next months. So we can to have some light about if really we will find ROI from our investments.

      If you permit me to do a prediction in advance, I think we could haven´t ROI in any both Mining or Cloud Mining investments. I hope you can show me I am wrong!

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    3. I'm going to assume your last prediction is that we won't hit ROI on any new hardware -- whether cloud or ASIC purchases -- is that right? If so, my feeling is this:

      If you buy an ASIC or a cloud mining contract right now, and you cash out of your BTC into fiat weekly, there's a very good chance you will not hit ROI for over a year. However, if you hold all BTC you accrue, my bet is that we're going to see bubble number four some time in the next year, and so let's say you spent $700 on cloud mining and over a six month period you earn maybe 1.5 BTC -- if price stays at $350, you have still not hit ROI. But then along comes a bubble and the price jumps to $1000+, and suddenly not only did you hit ROI but you've more than doubled your money.

      In other words, dumping all of your BTC regularly is a serious gamble. Yes, it protects you from price drops, but I don't think we can really expect BTC to go much lower than $300 in the near term, and it's far more likely that we'll see it jump to $1000+. I'm basically holding as much BTC as I can (after paying for a few bills related to crypto each month) so that when the next bubble comes, I can make a good profit.

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    4. Absolutely agree with you. In fact I writed this in my before post:

      "I think what if Price of BTC not change and go up in 3 to 7 months, any system (mining or cloud hashing) will have ROI for our investments in it."

      And now we are agree in what if BTC is not going up, you haven´t ROI, it is the moment to asking ourself:
      Why would we buying hash or mining power when we can buy directly BTC´s in someone Exchange, store it in cold and hold it until the Price will be PUMPEP UP by big dogs? :)



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