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Title: CEX.IO Question and Review Post by: williamj2543 on March 02, 2014, 03:01:42 AM Hello,
I just recently put my 0.25BTC into www.cex.io, and I have invested all of it into roughly 10ghs of cloud hashing. Normally cloud hashing is something you pay for with money on a monthly basis or so, and you don't get your money back. Cex.io is different, because you can exchange your ghs to Bitcoin any time you want instantly. As soon as you exchange your Bitcoin to Ghs, it starts mining right away with their own pool ghash.io (the pool that is reaching 51% control), which I don't really believe they should put all their hash rate into a pool which is approaching 51%, even if it is their own. They actually submitted a press release saying please mine somewhere other than ghash.io to control this, and they said they are in the progress of mining on multiple other pools to spread out their massive hashrate. Anyways, as soon as I traded my bitcoin to the ghs I went onto the ghash.io pool with my cex.io credentials, and I saw that indeed it was mining at 10ghs. This was a couple of hours ago and now I indeed have a very small amount of Bitcoin in my cex.io account, and at anytime I could get my 0.25BTC and take away the profit I mined. But this got me thinking. How could they afford to provide free mining and make a very small amount off of it (their fees are 2% I think). Lets say someone had 1,000BTC, and put it in website. The current cost of 1ghs is ~0.0235BTC, so lets find out how many ghs we can get with 1000BTC by dividing 1000BTC by 0.0235. That is 42,553 ghs, or 43.5 terahashes. Yes, 1000 bitcoin is a ridiculous amount of bitcoin, worth almost a million dollars, but lets say a millionare had a bunch of bitcoins lying around. According to the bitcoinx.com profitability calculator, you would make 6.5BTC a day, or almost 4 thousand dollars a day, from doing absolutely nothing. At any time, you just trade your ghs back to bitcoin, and now you have 1,006 bitcoin, for putting your money into this random website for 24 hours. Cex.io does get 3% of that, but they are just giving out free money for temporarily giving them 1000 bitcoin for 24 hours. Anyways, I have made a bit of bitcoin, and I will update you every day or so on how it goes. Probably in a month it will be time to withdrawal and I will see if I actually get extra free bitcoin, or maybe there is a catch. Any of you have any experience with this website? Thanks for reading this! -William Title: Re: CEX.IO Question and Review Post by: renee25 on March 02, 2014, 03:32:19 AM free? if they are not mining for you they are mining for the them, you're just borrowing their mining power!
the price could drop at any time. keep in mind they could ADD more hashing power at any time. so your returns will diminish over time. and remember that if btc goes up the ghs will go down . Title: Re: CEX.IO Question and Review Post by: Maxxt on March 02, 2014, 05:04:30 AM Are you sure about price relation?
It seems to me that, all else equal, price of 1 ghs goes up when btc price in usd grows. Title: Re: CEX.IO Question and Review Post by: williamj2543 on March 02, 2014, 02:51:09 PM Hey,
I just checked the site over for any catches, and the "maintenance fee" is actually 13%. Now I think that there is no more catches, cause 13% would actually take a nice chunk out of people's profits. I made around 0.0005 bitcoin over night which is like 30-40 cents. Yay... Title: Re: CEX.IO Question and Review Post by: byt411 on March 02, 2014, 03:00:12 PM Also, the prices are going straight down, since the price there is not worth it.
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