Bitcoin Forum

Hi all , I'm new to the BTC business and came across an ad for buying 1 Ghash for 0.1BTC with CEX.io and they do the mining so I signed up. Is that the way to go?
Thanks

mod note: ref spam removed

Probably not and nobody wants your affiliate spam.

Might have been smart to ask/read first.   $18 per GH is insanely overpriced and you almost certainly will lose 50% to 90% of that unless you find a ... http://en.wikipedia.org/wiki/Greater_fool

Thanks for the feedback BTC Legend  :D

dont forget the extra cost
How much is the maintenance fee? When will it be implemented?

    We are planning to implement the maintenance fee starting from November 1st. The amount is still being decided, the approximate cost will be $0.001 per GHS / hour.
https://www.cex.io/faq

signup with my link if you want https://cex.io/r/0/uk1/0/

Dude you have done something seriously bad really really bad! worst ever!

cex.io seemed to me a good investment... according to this calculator http://www.coinish.com/calc/, if i buy 1000 mh/s for 18 $ the break-even is 69 days and total income 76$/year, what am i doing wrong?

You are assuming difficulty will be flat forever when in reality it is rising >100% per month.

A crude guesstimate @ 100% month over month growth:
http://mining.thegenesisblock.com/a/15fb55ff8a

Over the last 90 days it has been closer to 130% month over month growth:
http://mining.thegenesisblock.com/


A meta question.
If you had a widget which you could sell for $18 but would be worth (residual value + payments) >$36 in 70 days would you sell?  Would anyone?  
Why wouldn't they wait 70 days and double their value?  
If you had a widget you could pawn off on a sucker that at best will produce $16 in gross revenue and more likely produce <$8 would you sell it?
Which scenario seems more like CEX?

shit... over 100% increase? and for at least 6 months?
Regarding the metaquestion: I thought cex.io was about attracting investments and earning BOTH on fees and mining. If they're not mining by their own, you're right

probably you will get 0.07-0.09 btc back in next 3 months. And it'll not make money later on and you'll sell it for almost 0.

Probably not but it won't help.  Looking at those estimates just as a ballpark view you see that most of gross revenue will come in the next 2 months and difficulty is almost certainly going to quadruple by the end of the year.   The growth MAY (or may not) slow down after that but by then you are looking at 0.01 BTC per month so even lets say it slows down to only 50% growth per month so you make a couple more months at 0.01 BTC and then a couple more at 0.005 BTC and then a couple more at 0.0025 BTC.  In the long run it doesn't change the gross revenue much.

I would point out that $18 per GH is just insanely overpriced.   It is like saying is a Prius a bad deal at $2,800,00 ea?  Won't I show a profit from the reduced gas consumption?

Miners paying <$5 per GH are unsure if they will show a profit (and they may or may not there are a lot of unknowns).  $18/GH is just taking your money and lighting it on fire hoping it will produce a profit.

Clear. Buying from cex.io is not a big idea, unless you're speculating on assetts rather than mining.
But there's no way to buy some hosted mining power? this HAVE TO be cheaper than run the machine by themself.. i see that butterflylab offer 10 "wannabe" GH/s for 10 bucks, but there are many concerns about the delivery time and it sounds like scam...

you guys should step away from the mining idea. it's over.

https://docs.google.com/spreadsheet/ccc?key=0AnoTFX7YTCl0dFFFektlRmJ0T0pwRGlvN3pyVHhPVFE&usp=drive_web#gid=0

Yeah it's a great way to loose 80% of your bitcoins. It's not even a scam, it's the fool's game.

Maybe for now. But what's next? If people stop mining, the difficulty will fall again and mining will return to be convenient, or not?
I mean: a lot of people are overinvesting in mining now, so in the next future difficulty could be artificially high because people are mining more than it's convenient to mine... and we'll expect a drop in difficulty in the short time. Am i wrong?

Mining only makes sense now if you are mining in TH/s not MH/s or GH/s. because of the difficulty 

Mostly wrong, because the electricity cost of the current network hashrate is a lot lower than the BTC/USD exchange rate. Miners likely won't turn hardware off till it's breakeven at best and slightly negative at worst.

Assuming the exchange rate stays steady we've a lot more difficulty to go before current network hardware becomes inefficient. 

mining power will not be decreased. no one stops mining because they make investment for it. So the dificulty will be increased following months and it'll stabilize somewhere. Miners will go on mining but device prices will go down or capasity will be bigger.

Anyway the result is step away mining in following months. Everything will be stabilized later on.

Got it: with ASIC miners and a "strong" BTC, the electricity cost/GH will drop and mining will be money-efficient for a still a long time, but not worth the overpriced hardware unless you start mining today.
Thank you guys, u're helping me a lot in understanding how all of this work.

Unless the Bitcoin difficulty stops growing like this, you may never get a return on your investment.

It was.  Just about a week ago the high price was only 0.04 BTC, if you had bought it then, you wouldv'e made quite a lot of dollars.

its an Exchange for GHash as well so the Ghash you mine with , you sell back . CEX.io are pumping out the blocks there is no way I can get a 4-5 Ghash mining rig set up and going straight away. I'm thinking I'll get a BTC or 2 over the next month or 3 (: Then the mining difficulty gets to hard unless you got 100's Ghash For a noob like me I'ts a good way to still mine a few BTC

https://cex.io/

MOD NOTE:
Referral link removed

Don't think your referral link would suffice to gain some money out of it.

Buy a ASIC blade for 1.1 BTC, 2-3 days for shipping and have .11/Gh. Plus it's not part of a monster centralized bitcoin pool...

Overclock it to 14-16Ghash too, if you can solder.

Got a link to these and overclock instructions?

No link to the blades, search will find you some, maybe for even less...

Here's the overclock "instructions." The new blades only have one clock chip, so you have to swap it as well as some current set resistors to increase the voltage.

https://bitcointalk.org/index.php?topic=310752.0

Thanks!.. I found some blades on Amazon.. will check out the overclock instructions..

Buying on Cex.io is better than buying hardware in many ways.  No heat, No huge electicric bills, and a liquid market to buy/sell more GH/s.

It's certainly a better deal than any ASIC offering at the moment once you consider the hosting expenses.  Plus you get access to what is currently the best pool, ghash.io.

And by all means use the link in my sig.

Not worth it unless the price is lower and can ROI....

Again, it's an exchange. It's super fluid, and the price definitely varies. I've seen it as low as 0.040 and as high as 0.125 BTC per Gh/S. Hell, I've dumped all my Gh/S into BTC twice and have in no way lost money on the investment. Oh, and ROI? I have every 0.0001 BTC back + mining profits + trading profits. Yeah, lost a lot of money on that one ???

So long story short: Buy in and sit on CEX shares? Probably a loss. Trade, like a good member of a commodity exchange should? You'll head out on top. If you're smart.  ;)

Cheers, fellows.

I agree nynexx , for the short term its hard to see how you can lose. Cheers mate BTC

What you have to do is play the market with your GHs.  Buy low and sell high just like a stock.  There's usually a mass sell of a couple days before a diff increase so you can sell at whatever it is then pick up more hashing power after the diff increase and keep up somewhat with the increase.

Any which way BTC are a fantastic investment. Good luck to all in the quest of BTC

no you're not..but good luck anyway

People don't get what's a GH/S at CEX.IO : it is something that loose 50 % of its value every 15 days and go down to negative as the fees and electricity are higher than the gain from mining. It is only because most of you don't get it that it stay overpriced.

Wake up people, 1 GH/S produce nothing, we entered the area of TH/S.

I haven't settled on whether it is a good or bad idea.  What I'm certain about is that these forums are littered with CEX referral spam.

And signature spam, and altcoin spam, and obvious scam spam, plus a lot more I don't care to try and list.

You are smart and foresighted sir.

As opposed to a $2.5k USD machine that never sees ROI and will have a HORRID resale value come, say, February?

"At least with CEX I can pull out."

1 GH/s at cex.io will also never see a positive ROI and will have a HORRID resale value in February, probably somewhere around 0.005 BTC, if you are lucky.

Hmm, good luck making back your investment. But worth a small investment for the 'fun' of it I think.

Because of recent outage, I am currently removing funds from CEX. I will likely be back. Here is an anecdote, one last time:
I came to CEX with some 0.94863546 BTC spange, and am leaving with 1.29863546 BTC.
That is a 31.1489% profit, or "R-O-*******-I."
I have been using the site since the evening of the 22nd. It is roughly the same time now, but today is the 1st. That is 10 days. That's 3.1% return every day, which is way more than what I see using a tuned EMA trader. I did not just "get lucky," I used my head, and made BTC. With very little BTC.

I'm not even aggressively day trading, considering it is an exchange with 0.00000% transaction fee.

But you people seem a little thick to the idea so I'm just going to stop talking about it now.

Good evening all,

nynexx

If we ignore the fees and charges, the price is still too high to see any positive return. And worse still, fees coming.

Everyone says this, but really its true:  You're better off buying some BTC in cash from an exchange rather than investing in an ASIC that you won't get for months on end.  By the time you do, as mentioned above, the difficulty will be so high that there's no guarantee you'll ever meet ROI. 

That's not to say mining isn't profitable.  For some, it certainly is.  But this was Satoshi's brilliance.  The market will self-regulate between profitability in mining and not mining via difficulty level.

Ghash is on the point of being unprofitable.

I am surprised the price is still at 0.1079 per GH/s... Based on my calculation, the fair price should be 0.05 Gh/s...

I'm want to buy for the exchange. And, I'm still deciding if I should go for this.

Before you jump in blindly and buy GH/s, it would be a good idea to figure out how much it will mine for you. I'll give you a hint ... 1 GH/s will mine less than 0.06 BTC over the next year. That is where the price will go, so buying now could be very risky.

I totally agree, not worth it. I would use the money to buy BTC instead. At least you have the bitcoins right away and they will go up in value within the next year.

Cex will be unprofitable in about a month or two.

It is only a good idea as long as there are gullible people who you can sell them to for a profit. It's a terrible model, though.