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After seeing the number of orders on Cex.io for GHS above 0.05 BTC I thought I would put together some links to relevant information and tools to estimate the return on investment.

Before you buy any GHS make sure you do the sums to see if it is worthwhile.

Here are my calculations that show that people who are buying GHS with cex.io are set to lose more than they invest.

The going price is about 0.072 BTC per GHS.
According to this calculator that uses the past 4(i think) difficulty rises to predict the increase in difficulty, you are set to lose more than half of your investment.
http://www.coinish.com/calc/#

To use this calculator to calculate the return per GHS,
Set the hash rate to 1000 (1GHS)

Change the currency in the investment section to BTC and enter the price of 1 GHS

Set the power requirements to 1.5 and the power costs to 0.3 as per https://cex.io/maintenance

You will see that considering reduction you stand to loose US$47 from an investment of about US$75

You can play around with the difficulty increase to achieve different results if you believe it is going to slow down.

However, it is hard to imagine it slowing down much if you will soon be able to get 1200GHs for US$7000, about 10 bitcoins, which equates to 0.0083 bitcoins per GHs. Almost 10 times less than the going rate on cex.io
http://bitcoinwisdom.com/bitcoin/calculator

The historical rise in difficulty and the next predicted rise can be found at the link below. The difficulty is set to rise more than 22% next time.
http://bitcoinwisdom.com/bitcoin/difficulty

It is very unlikely that at the current price of GHS that you will break even let alone make a profit.

The over inflated price is probably due to the generous referral system where if you refer someone you get 3% times the amount of GHS they buy. That combined with a lot of people wanting to get in on the mining business makes perfect conditions to exploit Beginners. Consider the advice you receive carefully.

If you have found this useful please consider donating 1Muj6adZViZ6nGWgT3bM3PUbGK3pK4Kx78

Al you pointed is right, actually first time I ever heard of cexio I did the maths and find out that is a total loss. Despite of that you don't count that this is not like other mining contracts. The fact that you can sell the hashing power actully adds an extra figures for your roi. In the rest of mining cloud services you cannot resell your contract at your will.

On the calculation I did. I'd say you could mine 0.0165 BTC @ 1GHs on the next year starting now. On an investment of 0.084 is a total loss as you said, but if the price of GHs is the same, it results that you win!!!
The first time I get into cexio the price was something around 0.07 I though this is not going even to keep the price, as difficult rise this price will go down. But you know what? I was wrong price went up and I think I saw it close to 0.1 what is just crazy, obvious over value.

But you know now i'm in, I'm trading GHs for BTC. and I found out that is an incredible good thing to trade for noobs on trading. As you have the mining profit as back up for your bad trades.

So by the way If you are thinking to get in... look in my signature ;)

not necessary lose money.

1) don't forget you are also mining once you have GHS. so you have to factor in how much GHS you are investing now. Even if you sell your GHS at a later stage, you would have made x bitcoins based on pure mining alone.
2) you also mine other coins.
3) hosting market will boom with bitcoins booming because newbies will want to get in without wanting to mess with equipment and electricity. GHS price will drop but it shouldn't be drastic.

I've made some nice coin off cloud mining just the past few days that I have been in it, buying and selling contracts, low selling at high and earning from mining itself.

1) yes, that's the reason for the value of GHS. Would you spend 2 gold coins to buy capacity in a gold mining deposit that will only ever mine 1 gold coin worth of gold?
2) you are set to loose about half your bitcoin investment if you hold them indefinitely. I haven't done the calc on how fast you are generating the alt coins, but I don't think their combined value is worth anywhere near half the amount of bitcoin you need to invest to mine them. If you think their value will go up one day, why not just buy some now with bitcoin?
3) that's why I wrote this post, to warn them they will not make back their investment. You could make money mining and intentionally selling your GHS to people for an overinflated price, but there is no gurantee that uou wont be caught holding GHS when people realise it is not woryh it and the price crashes. If you pull it off you are gaining from someone else's misery.

Well obviously you need to buy cheap and sell expensive, and in meantime, mine some sweet coins!

It's a zero sum game. Everytime someone gains by trading someone else loses. The price will hold while everyone thinks they are smarter than everyone else. Once a few people get nervous and decide to cut their losses the price will crash hard. You will need to do quite well at trading to double your money, because the highest reasonable price is half the current value.

which one is better :

store all my btc in a wallet and doing nothing and hope that btc price will increase, when the time come then sell all btc into usd and enjoy the money

or

put all btc into cex.io, convert all into ghs, and doing nothing and hope that btc prices will increase and get btc by mining, when the time come then sell all ghs into btc and btc into usd and enjoy the money

?

Option A, because if the price of GHS corrected to a value where one bitcoin investment would eventually mine one bitcoin, that it is to break even. It would probably be worth about half of what it is now and you would loose about half of your bitcoin. For some reason the price of GHS is worth more bitcoins than it will ever mine, about double. If the price stays that way then good for you, you can mine and sell your GHS for close to the price you paid and make a nice profit. But why should the price stay high? I think it is the rush of people wanting to join and trusting the market price without doing the calculations properly. The dificulty is going to rise, as people see they are getting less and less at some point they will panic and sell. Those who don't get out first will lose their BTC

It is also important to have a feeling for where the price of bitcoin is going
http://bitcoincharts.com/charts/mtgoxUSD#rg10ztgSzm1g10zm2g25zv
At the moment it is rising fast and has bounced back quickly from the adjustment a few days ago. This will create an incentive for people who can spend USD on developing faster chips, which will lead to a faster and more sustained increase in the total hashing power, meaning increased difficulty. The returns from each GHS will then reduce faster.

It should also be noted that during the gold rush more money was made selling mining equipment than mining gold. Macro psychology whoud suggest that it is likely that the same will be true with the bitcoin boom.

OH MEIN GOTT CEX PRICES ARE FALLING!! EVERYONE, START SELLIN!

The hash rate has jumped in the past few days, expect another significant dificulty increase and reduction in mining returns in about 8 days. http://bitcoinwisdom.com/bitcoin/difficulty

I liked them in the beginning, did some trading, etc. Then they decide to rewrite their TOS and yanked all my bonus shares. You can't trust them not to just change TOS at any time and leave you with a worthless account.

In the beginning cex.io was amazing. I remember putting .7 bitcoin and just trading gh/s back and forth and tripling my bitcoins. This was back when bitcoin was 150ish or so but man those were the days. That was when you could buy gh/s cheap and the difficulty wasnt 100 million yet lol. Now that the difficulty is so high the the usd per gh/s is high its a lose lose situation for most.

The difficulty is set to rise 30% in a few hours but the price is still 0.068 btc/ghs

About to increase the Bitcoin mining difficulty so Th/s gonna be the minimum.

I have updated the calculations at the current difficulty. I used 0.068 btc per GHS and 650 US per btc which gave an initial investment of US44.2 the expected return considering reduction was US-33.15 (note i use the expert setting). This means if you spend 1 btc to buy ghs you will probably only ever mine 0.25 btc! To break even the price needs to be 0.0175 btc per GHS. This game of chicken holding GHS to trade is getting ridiculous.

I have ghs in that site and was wondering it the price would increase in 2014?

I don't see why it would. It might bounce around a bit but the difficulty is increasing so the return is diminishing.

I calculate about the same results...    0.0175 BTC/GHS or lower to make $$.   I can only assume that everyone there is holding on hoping for more suckers to enter the market.

I have yet to understand how CEX adds GHS to the market....   I'm guessing they drop it in for a guaranteed profit?

Something smells funny with CEX.IO...

The problem is they have a marketplace where they own almost the entire sell side.  An exchange is a meeting place where buyers come to be matched up with sellers, not where a seller dumps their wares for more than they are worth. There is no price discovery here. They sell ONLY because it is more profitable than mining, which they are doing anyways.

CPU cloud mining have fixed price.

My sentiments exactly why don't the haters in this posting understand that... I swear I hate the BTC retards.

Mining contracts and similar constructs will always be in a declining price-trend. If you're banking on "buy low and sell high", you're betting against the trend and while you may hit some fortunate timings of short-timescale dips and peaks, it is essentially just gambling. Not investing.

Investing is sort of gambling. 99.9% of investments have some form of a risk and you are willing to to accept that risk (lost), FYI if you actually read anything you would see CEX.IO  IS NOT a mining contracting company. I serves as a pool and trading GH/s. THERE IS NO CONTRACT. I purhcase today at .42 then sold .44 BTC.. That's a one day profit.. Also the .42 that I invested is from the bitcoins I mined on their pool..........

You don't really know what a contract is, do you?

The fact that something carries risk doesn't mean it's gambling. Risks can often be estimated and, if necessary, hedged against. Most investments are not at all gambling.

You pay for the right to mining proceeds. You may resell those rights. Just because there's no actual contract involved doesn't make the mechanics of the investment any different from a mining contract.

That's speculating, not investing. The long-term trend on mining contracts is down. The proceeds from mining have to exceed the decrease in price. Will they? No. At best you may be able to offload the contracts to someone who is worse at math than you.

What about the part where the GH/s you purchase goes towards your worker and their pool has 0% in fees... Also the fact that you earn other crypto currencies (NOT just NMC).

cex.io is like any other investment I agree. The gh/s you have should only be for short term and I view it more of an interest to my coin than a profit maker. Buy and sell to make a profit that is where you make money not mining.

Well I'm pointing my 10GH/s rig to their pool and I'm making more with their pool mining than BTCGUILD and Triplemining. And the GH/s that sits in my account while I wait to sell on the market minning for me is like you said interest. Win Win all around... Not sure why more people aren't doing this...

And I will protect cex.io. They do really good job.

And this is my sotry and my own experience:
https://bitcointalk.org/index.php?topic=378439.0

PS. I'm still trading on cex.io :)

The price of GHS is overpriced and (long term) trending down faster than the mining rewards can compensate.  If you buy, chances are that you won't be able to sell them at a higher price. Only a retard would think that that is a good idea to buy. The only reason that it works is that there are enough fresh retards trying to get in that they push the price up. I hope that if they are thinking of buying GHS they will read this first and do the sums and stay away.

I got out at .041...

Fortunately, someone over at Scc saved my buttocks and I've been making a steady average of .5% a day on what I used to have invested at CEX.  TheRue is very good at explaining "Bad Maths" and when you combine the BTC difficulty with the CEX business model and the really poor attitudes of Admin and staff... it was a no brainer to dump what I had at CEX and go to Scc.

It's vaugely like CEX where you buy mining shares and can trade them on the site's exchange.  That's about where the similarity ends though.  Scc has software that analyzes the profitability of the top 40+ Scrypt coins every 60 seconds and actively mines the top 3-5 coins.  The coins are exchanged and you're paid in btc... every 10 minutes. NO MORE LOSING PROFITS TO MAINTENANCE FEES!  Since it's scrypt coins, the blocks come in at several per second so there's never a long, money sucking, wait between blocks.  The variability of scrypt coins and the fact there are multiples of them at any time... increases the profitability for a much longer time than any single coin can provide.  Just Awesome!

Come on by and meet staff that's happy and helpful (What a concept, right?) and a community of people that are helpful and happy as well.  Really a great atmosphere change from the trollbox at CEX. Wow!  Accounts are free at Scrypt.CC?ref=baagt (http://Scrypt.CC?ref=baagt) and ref links don't change your profits... they DO help me out in a much needed way and I'm sure you'll love it there!

Any service that is mining a single coin has this same issue.  You can switch to LTC mining operations but the rise in difficulty is still there, just slower than for BTC.  The real money these days?  It's in Multi-Mining Scrypt coins!

Check the boards for other posts of mine... I have a few on here regarding Scrypt.CC?ref=baagt (http://Scrypt.CC?ref=baagt) where I'm invested now.  Been tracking their progress in beta the last almost 2 months now.  Week or two more and they'll be ending Beta.  The bummer is that although they'll have the bugs fixed and the new site face up... all the cheaper beta KHS will be gone when that happens.  Doh!

Won't hurt to come check it out... open a free account Scrypt.cc?ref=baagt (http://Scrypt.cc?ref=baagt) and then come by an IRC chat some of us have to help answer your questions. :)  Webchat.freenode.net/?channels=#scrypt.cc (http://Webchat.freenode.net/?channels=#scrypt.cc).  Most of us have been in chat on Scc for almost 2 months now, so we've been around to talk with Admin the most and pick up the most answers.  Come pick our brains... happy to share!

See you there and...

Keep it Clean! :D
p.s. Absolutely LOVING IT THERE!

So no need in trading, won't get much on CEX.IO anyways but maybe not, I dunno, anyway have to have a lot of money so to trade for good!

Let's talk about mining instead, you can just simply buy 1000 GH/s * 0.0052/3.22$ = 3220$ you'll lose 0.26$ (as I remember for maintenance) which will be worth 260$ per month!

Then the funniest thing goes, by using this: https://alloscomp.com/bitcoin/calculator you can calculate & see

https://i.imgur.com/U08rD8V.jpg

Which means that so to get your 3220$ back you'd need approximately 12 months including 0.26$ maintenance fee, so 12 month will be wasted for nothing & only after 12 months you'll start to make some little profit!

3220/547=5.8 months let's take 6

6*260=1560$

3220-1560=1660

If I'm wrong & made some false calculations & so on pls feel free to remark me, I'll be glad!

Otherwise I don't see any sense to use CEX.IO although a team & site are very cool! :)

Little remark, I see sense of using CEX.IO if you have a spare 5-10k bucks, better more!

So awesome service anyway!

The thing about cex is the gh price are being pulled too high now each gh are about 0.005 BTC still double of the other .

I've been using GHS for some time, and at times the value of GHS falls faster than mining income (net loss).  Other times it doesn't, and occasionally, and only briefly, GHS prices go up. 

I look at this and see GHS share prices were substantially higher last year, confirming this gradual reduction in GHS value.  This works also with the difficult rising.  I notice GHS share price history on CEX only goes back one month, max.  If it went back years, the lights would go on for many, that they lose value just as miner hardware loses value.  But whether or not this trend spells disaster going forward or not, is not clear.  Not to me, anyway.  We've had a large down-swing, from .008 to about .004.  That's a radical and fast decrease.  How fast it looses value, is curious, because if it falls so much that nobody wants them, bit coins will vanish.  BTC is not vanishing . . not yet anyway, so there must be miners ponying up.  I wish I could add more value. 

the bitcoin community has already established that cloud mining and mining in general  sucks eggs

I have about 1500 GH/s on CEX.io and I'm pretty sure that everything mined gets taken away by fees!

Info on current PER GH mining proffits


https://cex.io/maintenance

Currently 1 GH costs 0.0005 and per month you pay cex.io $0.105 per GH in maintenance.

Currently 1 GH earns 0.00034812 \ $0.08 per month

Currently mining with 1 GH at CEX is a negative -$0.025


So if you were mining with 1000GH with cex you would be -$79.90 and go into a minus balance because your not making anything.


In short it doesn't matter what PER GH costs its never going to make profit ATM and you should just sell all the GH you have on cex. Any one that buys any GHS is stupid unless they have very good reasoning and I only know one reason why.

Thanks

is this all based on them not wanting to mine w. the difficulty increase each time? or something else.

I dont even consider them as an option, due to the fees I keep hearing about.

When theres services like hashnest why bother.

CEX is essentially closed now. Unless bitcoin price picks up to over 300 (not looking good) everyone who invested in CEX can kiss their coin goodbye.

I'm not shedding any tears. I was still holding a few GH/s but I sold out of all cloud mining after the pbmining debacle. So I guess I unwittingly made a good move.

cex has essentially proven they actually control the mining equipment so the risks of holding cex's mining shares are not the same as holding pbmining shares.

I would not be at all surprised if cex eventually resumes cloud mining with new, more efficient equipment as they are going to want to attract customers to their site to use their exchange

What about at current prices?  If CEX starts mining again, would the current price of GHS/BTC (.00077 as of now) be a good time to get in?

If not, then I couldn't wrap my head around how Cloud Hashing is selling contracts at such a high price.  Look...

https://cloudhashing.com/bitcoin-mining-contracts

Yeh GH/s are cheap there, I bought a few yesterday since the price is approaching $300 again. I might sit on them and see what happens in the next few weeks with cex.

Any good places to sell GHS?

What are you selling for?

I don't care actually, but let's say BTC.
I am looking for platforms where you can sell GHS, outside of cex.io of course.

I lost interest in mining a year ago, and I totally forgot about my cex.io account. I have 41ghs there, and it appears there is not way to sell them. Some one please update me on recent cex history.

You means trade ghs to btc? click on my signature!


You should go to try contact their support, because they stop their mining activity, but you can still trade ghs/btc there.

i had ~100 ghs on cex, I forgot about that. I accidentally go to cex (i think april 2015)and see that is stopped mining because god unprofitability. i sell it on cex without the problem and withdraw.

Well I see it depends on the market exchanger of that mined coins was still having bigger volume, that's why you could not be certain at all time it's actively trading with the site you usually do transactions. Anyways, mining ideas is not so bad at all but you must think how it really works well with the profit you wanted to, and losing money is not a new story; were always at risk when it comes to profit and for the great success to come you must be informative.