One should keep in mind that by not pooling you aren’t actually losing output, you just have a bigger variance in outcome. If you intend to keep mining for at least a year or so, having a week or two with no return won’t be a big deal. If you do not intend to keep mining for that long, it’s hardly going to be worth the effort of setting up a pool.
Thank you for clarifying that. I initially assumed that humans formed pools because that increased the rate of return per unit of computation invested, but did not see how that could be. Your explanation of the decrease in variance resolves my confusion.
On a separate note, a macroeconomic scenario where people accumulate wealth on a large scale by running powerful computers performing useless hash checks (while they could be helping with Folding@home or something) is a little disturbing. At least precious metals and gems are nice to look at, and have several industrial uses.
Every person who joins Bitcoin increases the network size, which in turn increases the probability that it will cross the threshold beyond which it will be popular enough to replace other currencies in common transactions. That is an additional, external benefit of spending computation on Bitcoin, and it helps beings like me, who have significant difficulty in interfacing with the financial system but not with electronics.
It would also help those who desire more anonymity in exchanging money.
I initially assumed that humans formed pools because that increased the rate of return per unit of computation invested, but did not see how that could be.
If anything, it’s the opposite. A number of pools actually reduce your payoff since they take a cut in exchange for providing the pool service. (The worst, Compute4Cash, takes ~50%!)
Thanks! It shows up on my client! (I was wondering who that was from...) I will keep some extra paperclips safe!!!
Plus, I got the GPU thing to work, and it’s reporting ~29 Mhash/sec. (So not good compared to the latest GPUs, but I’m doing the best I can with what I have.)
EDIT: And you probably already inferred this, but you are a good human.
Thank you for clarifying that. I initially assumed that humans formed pools because that increased the rate of return per unit of computation invested, but did not see how that could be. Your explanation of the decrease in variance resolves my confusion.
Every person who joins Bitcoin increases the network size, which in turn increases the probability that it will cross the threshold beyond which it will be popular enough to replace other currencies in common transactions. That is an additional, external benefit of spending computation on Bitcoin, and it helps beings like me, who have significant difficulty in interfacing with the financial system but not with electronics.
It would also help those who desire more anonymity in exchanging money.
If anything, it’s the opposite. A number of pools actually reduce your payoff since they take a cut in exchange for providing the pool service. (The worst, Compute4Cash, takes ~50%!)
Okay, I just got set up with Bitcoin. Send coins to my address at:
16eyVtgaTYGxstybeay9mQ6xy4GAPVtXLN
.05 bitcoins sent! Keep some extra paperclips safe for me.
Thanks! It shows up on my client! (I was wondering who that was from...) I will keep some extra paperclips safe!!!
Plus, I got the GPU thing to work, and it’s reporting ~29 Mhash/sec. (So not good compared to the latest GPUs, but I’m doing the best I can with what I have.)
EDIT: And you probably already inferred this, but you are a good human.
Why would I do that? What’s in it for me?
Please send some my way as well. And please also think of a reason to do so. Thanks in advance. 1DXZUdV5UCeaz6TUQ8oWG8d6xJheKRHsuv
I’ll think of 1 reason in exchange for 1 bitcoin.
1CzPhJzXSnXGq2UJReD4UixD35vS2FbiKWTempting! I’ll give you some karma while I think it over. 1DXZUdV5UCeaz6TUQ8oWG8d6xJheKRHsuv
We sell karma, but this time you don’t even need to give real money
Drat! I was thinking about getting into the karma selling business, not buying.
You gain social status.