Ethereum Cloud Mining for Dummies

https://github.com/angelomilan/ethereum-guides/blob/master/GPU-cloud_mining.md

by cdvonstinkpot • 11 years ago

35 51 11 years ago

davidgerard12• 11 years ago

The Ethereum scam is detailed here: https://www.reddit.com/r/Buttcoin/comments/3g5sk8/anyone_pay...

tl;dr it's a pretty standard premined altcoin scam. All the "smart contract" babble is a cover for the premined altcoin scam.

see also: Stellar.

throwaway19345• 11 years ago

Indeed Ethereum is a scam.

Investors who purchased Ether credits from Ethereum were in fact purchasing what amounts to equity in the Ethereum company.

If there was any doubt that this was illegal they went to great effort to create a Swiss company and then immediately dissolve it.

Kraken and the CEO Jesse Powell are accessories after the fact.

yc10103• 11 years ago

I was surprised Kraken (US company) are getting involved with Ethereum trading

The whole project should be looked at by SEC

https://en.wikipedia.org/wiki/List_of_highest_funded_crowdfu...

$18,439,086 raised, yet no legal company exists, no filling were made, the programmers all have Eastern european names and everything in shrouded in mystery

but at least there is as sleek webpage to sucker people in like has happened with Stellar (how is that getting on?)

abrkn• 11 years ago

If it's a scam, why do they have a Github organization with 50+ repos? go-ethereum alone has 6469 commits by 59 authors[1]. Would be the most elaborate and time consuming scam ever.

[1] https://github.com/ethereum/go-ethereum

yc10103• 11 years ago

For 18 million bucks people would go to great lengths...

133• 11 years ago

Money buys a lot of commits. Give me a few million dollars and we'll get together a group of people that will build an entire computer from discrete transistors. People involved and amount of work doesn't make something worthwhile, reasonable, or viable, it just means that people work for money.

davidgerard12• 11 years ago

"If it's a scam, why do they have [trappings of an organisation]?" - every dupe of an MLM, Ponzi or pump'n'dump ever, trying to reassure themselves. There's a reason scammers put up fronts.

AJ007• 11 years ago

Who are these people[1] and what credentials do they have to build and run a cryptocurrency platform?

[1] https://angel.co/ethereum-1

davidgerard12• 11 years ago

One thing we can be certain of in the future: every new prospective altcoin will be sure to prepopulate its Github with Rockstar. https://github.com/avinassh/rockstar/

DennisP5• 11 years ago

The Buttcoin post details the actions of one exchange. In a decentralized system you can't control everybody's actions.

The "premined" coins mostly went to the people who pitched in for the crowdfund. That was open to anyone and well-publicized, and the money went towards Ethereum's development. They hired about thirty people.

The "smart contract" stuff is real working technology, and it's the niftiest thing I've seen since Bitcoin. Ethereum is also the first production implementation of GHOST, which gives the same security with a 15-second block time that Bitcoin's algorithm gets with 10 minutes.

davidgerard12• 11 years ago

The "smart contract" stuff is real working technology

As noted above, there's a curious lack of evidence and that the example relies on handwaving https://news.ycombinator.com/item?id=10027569

joosters2• 11 years ago

Bonus scam: Ethereum introduces the first ever verified pyramid scheme!

http://pastebin.com/AGDsJL6j

Paul_S• 11 years ago

This is as much of a scam as any product ever sold. The creators sell you a product that will make them money. You know that you are paying more than its cost because you want it. Am I describing ethereum or a toothbrush?

The point is: even if they get stupid rich because of the block premined for the presale doesn't make the system better or worse.

davidgerard12• 11 years ago

Nobody buys toothbrushes on the basis that the toothbrush market will go to the moon. This is, however, the standard selling point for cryptocurrencies. As is claiming the selling point is something other than a claim it will go to the moon.

mkstowegnv• 11 years ago

Skepticism of individual cryptocurrencies is advisable as is skepticism of their critics. A lot of the vitriol and guttersniping is the product of rivalry between them, bitterness over the fall in value for many of them, and an almost religious division of opinion on the merits of sidechains versus separate currencies. At the moment the Wikipedia page for ethereum has no criticism section, as most controversial subjects do.

brighton364• 11 years ago

All currencies are religions.

davidgerard12• 11 years ago

At the moment the Wikipedia page for ethereum has no criticism section, as most controversial subjects do.

At the moment the Wikipedia page reads like an advertisement.

ThomPete4• 11 years ago

A lot of claims about this being a scam. As someone who have had same idea as Ethereum and not to scam people, can someone explain to me what makes it a scam.

yc10103• 11 years ago

Premining,

Satoshi releases Bitcoin quietly to the world and doesnt ask for a red cent in advance from anyone despite creating one of the most important/innovative technologies of the last decade, and then disappears with his mined coins remaining for years unused and presumed lost.

Ethereum guys sell Ether(s) in advance (why for bitcoin of course) promising the moon and the stars in the form of a cryptocurrency + scripting

They put the horse before the cart IMHO, imagine if all those years ago Linus asked everyone to give him 18 and half million to develop Linux, would it be where it is now?

ThomPete4• 11 years ago

Thats like saying the dotcom bubble was a scam isn't it? You can certainly phrase it like that but is that really whats going on. An actual scam?

DennisP5• 11 years ago

So I take it you're against crowdfunding in general?

patcon• 11 years ago

Your story might have substance if you had any evidence that it were the truth. But we don't know Bitcoin's origin story yet.

Also, your criticism is only of fundraising politics (which not everyone need agree with you on), not the product. There are many ways to fund great software, and even if you don't like it, crowdsales are one.

Real criticism is welcome, if you have any.

rabbyte2• 11 years ago

Because it's not Bitcoin. As far as I can tell, this is the number one piece of evidence that a cryptocurrency is a scam. I've been following Ethereum almost entirely because I'm a developer and I'm interested in using the technology for projects, and I can tell you the atmosphere is maddening. I'm accustom to welcoming communities that care about the tech, not cynical communities that care about pushing their particular interests because they have investments. The cryptocurrency space is awful and polluted with unhelpful attitudes but the tech is too important to be pushed aside for that reason.

Ignore the FUD, Ethereum is not a scam. It's actual open source software with multiple popular implementations successfully delivered from a toxic environment with an impressive level of care toward getting the technical aspects right while being as transparent as possible. It's not perfect, about as perfect as any startup I've watched. Don't dump money into anything you don't understand.

EDIT- just as an illustration, I think it's interesting to use the Bitcoin Talk forum search tool. There are 464,000 results for "scam" and 484,000 results for "currency". Spend 5 seconds on the forum to find the word used like it's the coolest slang around. Everything is a scam, because evidence.

ThomPete4• 11 years ago

Thats also my experience.

davidgerard12• 11 years ago

What I see is Bitcoin fans pointing out the glaring problems in every altcoin, but not admitting that every single one of those problems applies to Bitcoin as well.

leashless2• 11 years ago

facepalm

Bitcoin fundamentalism doesn't really change what we've shipped, and as you see products coming out based on our technology over the next few weeks, these questions will be settled, cold, hard and clear.

Enough.

leashless2• 11 years ago

(I should note that I'm the release coordinator for Ethereum)

davidgerard12• 11 years ago

I look forward to you explaining this one:

http://cointelegraph.com/news/115034/ethereum-launches-but-l...

If you look at how the money actually flowed, it went from the suckers to the premining pumpers who dumped it, and the devs will be paid another seven months before leaving the bagholders high and dry.

Note the irrelevance of the promised smart contract/distributed botnet functionality - which, as that post notes, at present rates won't be working properly for years - to the actual, observed flow of cash.

This is a repeat of Paycoin and Stellar. Totally standard premined altcoin pump and dump.

chrispeel• 11 years ago

Vitalik Buterin and others have been very clear that Ethereum may fail completely and that it's an experiment. Others (https://twitter.com/NickSzabo4/status/495300992049479680) widely acknowledge that Ethereum is the most technically ambitious cryptocurrency since Bitcoin; it's not in the same category of coins which changed a parameter and created a new coin.

I'm the organizer of the Silicon Valley Ethereum meetup; I've offered a chance to Greg Maxwell, and Austin Hill the chance to talk to us and give a coherent critique of Ethereum; they did not take me up on the offer (We had Matthieu Riou give a brief critique of Ethereum at our meetup; see https://www.youtube.com/watch?v=BwPulJKP1_Y). I'd be very happy for a coherent and respectful critique of Ethereum from one of you at one of our meetups; you're welcome to contact me; see http://www.meetup.com/EthereumSiliconValley/

davidgerard12• 11 years ago

Looks like word got out about the premine: it's straight-up imploded upon hitting the exchanges, losing 75% in a day and still dropping. http://coinmarketcap.com/currencies/ethereum/ Paycoin 2.0!

(And as soon as it stabilised against Bitcoin, Bitcoin went down $20.)

negamax• 11 years ago

It was sold for 2000 per BTC. Still 10 times higher!

DennisP5• 11 years ago

The first prices were posted while Kraken only allowed a few users to sell (Level-4 verified with collateral). It's not surprising that the price went down when the supply went up.

davidgerard12• 11 years ago

Graph still flat.

So, when do you predict it will start going up uP UP? Please make a checkable prediction as to this.

Ethereum Cloud Mining for Dummies

Related Stories