How do I into hedging?

[Anonymous No.11321888]

Economists of /biz/, help me out pls?

I'm starting a service where I basically take on clients and pay them cash to let me use their hardware to mine shitcoins.

I'll explain further in the next post, but my initial idea was to simply pay a client a flat rate per every block they manage to mine. I'd calculate that periodically based on the current market price of said shitcoin, and pitch it such that if each individual block reward of shittokens is worth say, $1.50 if I went and sold them immediately, then I'd pay the client $1 per block.

Now there's a particular shitcoin that I've especially wanted to accumulate through this harebrained enterprise, and it's experienced an unusually high rate of growth in a surprisingly small timeframe. I have reason to believe it will only continue in that fashion, which is why I realized I need all the spare hashpower I can get and am willing to pay out of pocket for it in advance.

The problem is, if I get a prospective client with lower-end hardware, they might only end up finding maybe one or two blocks per month if that. And if I quote them an estimated payout of only a couple bucks per month, they'll probably balk and decide it's not worth it at all.

So this morning I had an idea.
What if I built in some kind of hedge-fund dynamic to the business model, and told people, ok instead of a boring/insignificant flat rate per block, how about if, later on, the coin ends up mooning hard and I sell off a portion of the operation's total accumulated shitcoin earnings for a big return, I could then distribute a percentage of the gainz to each client, proportional to their contribution?

That would really entice people if they were suspect or iffy on the whole thing before. Only thing is, I'm not going to kid myself and try to play hedge fund manager with a bunch of people's (imaginary) money.
Is this a good idea, and if so, how can I go about doing it right? I need boomer financial risk management tips.

[Anonymous No.11321934]

with that face - no one will give u money.

[Anonymous No.11321944]

>>11321934
I would face fuck that sexy ranjeet u basterd bitch

[Anonymous No.11322084]

Bump. Cmon, someone school me already

[Anonymous No.11322107]

this isn't hedging.

[Anonymous No.11322138]

Shutup OP.

[Anonymous No.11322157]

As a miner top fucking kek, are you serious? Why the fuck would a miner mine to your wallet and let you take a percentage for doing fuck all.

[Anonymous No.11322472]

>>11322107
Ok, what is it?

>>11322157
Ok yeah my bad, I guess I forgot to explain the most important part.

It wouldn't be miners. I'm not going to look for people that are already mining themselves, that'd be stupid.
The appeal here is this: I would come along and tell average normies, hey, do you have a semi-decent PC at home? Well I mine memecoins and pee sitting down, and I am prepared to pay you a moderate chunk of cash on a monthly basis basically just to make sure you leave your computer running.

There is an enormous untapped market of NPC's that get excited when they find a $20 bill in an old pair of pants, but have never heard of cryptocurrency or how to use it, let alone the entire process of mining shitcoins, trading them to BTC on a scammy exchange, and getting it to safely end up in their bank account. And yet, they almost all typically have at least one personal computer at home, which probably doesn't get much use beyond the occasional youtube and microsoft word.

The value play is me doing all the dirty work, and making it braindead simple for the everyday IQlet to receive "real" """"money"""" in their bank, on a consistent basis, in exchange for mining shitcoins for me, all without any need to give 2 fucks about how it works.

[Anonymous No.11322491]

What hqppen when they find out that (what you pay)-(electricity bill) = shit.?

[Anonymous No.11322516]

>>11322472
So for example let's say the first few people I'll get on board are a few of my friends who are autist gaymers, all with relatively high-end gaming PC's. I'd just have them install Teamviewer and then remote into their PC to install the miner, add an exclusion to Windows Defender etc. I'd make a fresh wallet file for each separate client beforehand, and then generate a watch-only keyfile, set it to mine to that wallet's address and then show them how to open the watch-only wallet so they can see for themselves how many blocks they've mined - but without the ability to spend the balance. I'd keep the seed for each client's assigned wallet in a safe place.

>>11322491
The coin I'm looking to mine is a Cryptonight variant that's easier on power draw than your typical shit like Ethhash. I'd explain that too if they complained about how I'm going to burn their house down.

[Anonymous No.11322524]

>>11322472
What stops some normies from doing a little research and going rouge with your shitcoins? Or if they mine a certain amount but keep a small chunk for themselves without telling you about it?

[Anonymous No.11322539]

>>11322524
See
>>11322516
>>11322516
>>11322516

They'll each get a watch-only version of the wallet they're mining to, but as I'm keeping the seeds, I hold the power. They won't care either because they're normies and don't know how crypto shit works anyway.

[Anonymous No.11322629]

And when the huge ass power bill comes in who is paying it. You or then?

[Anonymous No.11322675]

>>11322629
See >>11322516
dr. brainlet

[Anonymous No.11323030]

>>11322675
That didn't answer the question retard

[Anonymous No.11323177]

>>11322472
That’s actually based af regardless of what the fuck is said in this thread if he has the time to talk to the NPCs then he could definitely make some gains from this.

[Anonymous No.11323381]

>>11323177
Seriously, thank you. At least one redpilled anon gets it

>>11323030
I'm saying you can assume the elec costs are practically negligible. Thus, no huge power bill.
Unless of course, I get some methhead who obsessively starts building a legit server farm and just relies on me for his crypto escrow without bothering to learn how to just mine himself.

I actually live in a backwoods-af state, and I can guarantee if that kind of situation did occur, the methheads around here probably wouldn't even think about their power bill. They'd most likely just see dollars and go apeshit scavenging all over the town for moar hardware

In fact I'm almost expecting to have that happen if this thing takes off in any capacity.

[Anonymous No.11323462]

>>11323381
How do you send them money? Are you using paypal or electronic deposit?

[Anonymous No.11324225]

>>11323462
Yeah, whatever works but at least at first (as long as I'm only working with a few clients directly) I'll just use venmo or paypal to keep it low-key. Maybe I'll worry about direct deposit and all that shit if I ever have to get a lawyer when it blows up or something like that.

[Anonymous No.11324670]

Worth a shot OP but I suspect your margins will be very thin. If you live somewhere cold and your clients mining rigs are heating their house it makes a lot more sense. Otherwise I doubt the increased power bills would go unnoticed for long.

[Anonymous No.11324779]

>>11324670
See
>>11323381
>>11322629
>>11322491
assume power cost negligible negro

[Anonymous No.11324900]

>>11321888

[Anonymous No.11324929]

>>11324779
>Assume non-negligible cost is negligible
Ok kid good luck

[Anonymous No.11324955]

>>11324779
Id throw some money at you for crowd funding if im promised a tiny percentage of gainz as well. See this is why i cant wait till chainlink puts faith in smart contracts, so that i can safley get in on so mething like this
Amazin idea OP, best of luck

T. brainlet

[Anonymous No.11325017]

>>11324955
Lol thank you fellow brainlet.

Any suggestions are appreciated. I'm mostly just wondering how I should build in the incentive for "moon dividends"

The idea I have right now is like, pay the $1/block as a base rate, but also at the end of each month, take some percentage, say 10% of the total pile of that month's shitcoin-revenue that everyone has mined for me, sell it as the price (hopefully) keeps climbing, and then distribute that BTC (or USD) profit among each client proportional to how many blocks they contributed.

Good idea? Should I tweak the parameters (10%/month too much?) Come up with a different scheme entirely?

[Anonymous No.11325078]

>>11325017
Is that an ancient sculpture of Americans?