Bitcoin Forum

Here's the news from CEX.IO blog:

http://blog.cex.io/cryptonews/cex-io-temporarily-suspends-cloud-mining-services/

They are blaming the BTC price drop & difficulty increase

"as soon as we get an opportunity to upgrade mining hardware, or come to more efficient terms with energy suppliers, cloud mining process will be automatically resumed". - No date given, do not hold your breath.

Is this bad news for the BTC community?

And what happened to the people who bought the Cloud mining service and their contract is still ON . they will get refunded or something? :o I personally was never a fan of Cloud mining anyway , you lose more money then you earn (unless you use it for long term of course)  ::)

I think it's troubling they couldn't be bothered with upgrading their hardware as time went along.
At one time they gave an option to buy their mining hardware but I don't see that now. Their hardware was old a year ago and I didn't see any newer efficient hardware being installed.
They honestly didn't get a ROI and than some on their cloud operation?

I got out of it as soon as balance started to show negative earnings which it has been doing for some time now.

I asked exactly this to them. Following is their response...

Well at least they have left the exit door open to sell off gh/s, I think a lot will be taking this option which will allow them to re-fresh their hardware which they should have done some time ago t keep the cloud mining going

Its a sign that they may have been fractional reserve mining because BTC hasn't dropped that low where it is unprofitable to pay for electricity. Rather than popping like other cloud mining services they simply suspend payouts due to increased maintenance costs.

They have plenty of resources to set up the speeds to other coins. Allowing us to put what we bought into other means of making money. Im not sure why this isnt something that can be done. There are tons of SHA256 coins out there for us to get at.

They have also stated that gh/s remain the property of the customer and that they are free to either hold on to them, sell them or manually mine with them so at least options are there rather than closing all the doors

If it's so much trouble to keep things going then why are there other cloud mining companies that are doing just fine? Doesn't add up, but oh well, I didn't like cex.io much either, seems to me a case of poor management of their funds if they're truly having difficulties.

I wouldn't speak too soon on that one, maybe cex.io is starting the trend for the BIG cloud mining companies

I fucking hope not :S that said, it seems very easy nowadays to spot the ones that are going to fail, just because of how frequently they 'run into' problems.

Where will the BTC go when ghash.io finds a block? (in cex.io pocket)?

no ... because you don't mine BTC in cloud ...  ::)

Do people even get 100% virgin coins from CEX.IO cloud mining? If not, than it is a likely fractional reserve cloud mining ponzi.

Are there any cloud mining companies that payout in 100% virgin coins?

Actually it's good news lmao.

instead of the LOL's how about you state the good news that so obviously awaits us  :o

I'm amazed by your reasoning power. ;)

Well it's going to be shit news for you if you bought hashes to trade with instead of mine with.

Nobody will be buying.

This is indeed taking down the GigaHash price in Cex platform. Right now 1 Ghs costs 0.00076183 BTC on Cex (ref: https://cex.io/#GHS-BTC), which is the cheapest in the industry. They might even buy back at a lower price.

They stopped cloud mining but you still can buy or sell GHS at 0.007? You buy in hope of future profits?

I think that's what some people will do and hold out hope that they get everything back up and running.

Or one of the options cex.io gave is to solo mine existing gh/s so maybe people are buying them up and doing just that

I cannot remember anyone making profit with cloud so far.

I hate cloud mining.

Thank God. Cloud mining is history.

 ;D

I suppose we need to wait until they restore it...

If they really suspended because it's unprofitable you'll have to wait until bitcoin gains value and this might never happen.

Some cloud minings closed when bitcoin fell to $350. It wasn't profitable back then so it can't be now.

This is good news because cex.io shares are now valued appropriately. Before this move, anyone buying them was a sucker. Why were people paying 1 mBTC per GH/s for negative income? I don't know, but cex.io has done them a favor because zero is better than a loss.

How big was the clouding mining farm / hash rate? 

If my memory is correct, cex.io was running the network/pool that had almost 50% of the entire Bitcoin network, just last year.

Probably nothing will happen, they will pause and resume client mining when difficulty will be even higher ; /. Sounds like scam.

You are correct, but they stated that they had no intention of an attack as this would impede on business and even if I recall allocated some has to other pools.

I think it was around 10 Ph/s.

Correct me if wrong.

Have they stopped mining?  All I've heard is that they paused mining contracts.   No more payouts, but no fees either.

People still own the Gh/s but are no longer suffering a loss. 

Curious to see if they keep mining in the coming days/weeks.   

Only good news IMO.

cloud mining (ALL OF IT) has always been a ponzi. 

No equipment, no mining, just promises of forever payouts.

things can't sustain when demand drops and overall price is not rising.

cex.io and many cloud mining companies proove they have the equipement!

one thing is sure. the price will FALL a lot in the next days.

The difficulty may go down so the revenue of current miners that are connected will go up.

correct but it is necessary new equipment+ electricity bill(which is huge) and you need money for that. without profit, no money.
no money? no hardware and no mining :)

yeah cex.io had 10ph's they are still running. if you go to cex.io/redeem you can see for your self. you can buy over there but the ghs are freaking worthless no matter how many you buy. in one month they went from .0015 to .00055 last night they where at .00041 cloud mining sucks and its all just a scam. buy miners in hand from amazon no where else! thets my advice

So you buy at 0.0005 and they don't mine!? Can you get back the equipement?

Cant believe that peoples can be so stupid. Sorry.

Your are buying not working service with only hope, that bitcoin price to the moon and service start again a business after 1-2-3-4 years later? Also big chance that be never. But thats alright that your are buying,because a lot of people wanna sell it for you worthless thing what they own.

Peoples, please..

fistlu cex stop mining
and today hashnest stop mining too
i dont think they will start minin again..
cloud mining will die..

How can they stop mining and hashrate increases again.

This is fucking insane.

This may be a good opportunity to buy up a lot of shares of cex's GHs cheaply. The price will eventually rebound high enough so that it would be profitable for owners of GHs to turn them back on and the difficulty seems to be stabilizing somewhat. This is especially true if you have some bitcoin that you can afford to have be tied up for several months

cloud mining is almost dead. maybe some chinesse to still mining :)

They are still mining for themselves, just officially stopped, so they don't have to pay their customers.
The price of BTC will go up again and they know it.

because they arent actually mining? just saying they are then buying the coin to pay people, not sure.

this is not cheap by any means. the other place has it at  a similar price, and they are plugged in. still paying out.

It looks like they are trading at $0.11 right now. Compare that to the roughly $0.3289 per gh/s that an s3 costs (plus the cost of a PSU). Granted an s3 is probably going to be more efficient but the cost per gh/s is much higher

Other cloud mining companies are not "doing just fine."  EG, Cointerra, GMP, and PETA are dead.  Even AM and 100TH are down to paying the occasional dust dividend.

Lethn may be the dumbest Legendary member of this forum.  He spews idiotic, demonstrably incorrect crap like this all the time.

The difficulty may be stabilizing because cex.io is stopping cloud mining. If the price of BTC will go to 300$ again soon, they will resume mining and the price per GHS will go back to 0.0013 or more per GHS for a more than 100% profit in BTC.

now bitcoin prize is 210 dolar
if we can see over 250 dolar, mining will be profitable again
i hope we can see..
i lose profit cex and hashnest in same time :(

Why would that be troubling? Cloud mining gets you a fixed amount of hashing power just like buying a miner gets you a fixed amount of hashing power. If you're running a physical miner then at some point, electricity costs will be greater than mining income. The same is true of cloud mining. If you bought a physical miner and it became unprofitable would you expect the seller to send you a new, more efficient miner free of charge? No, you wouldn't, so why would you expect a cloud mining service provider to upgrade their cloud mining contracts free of charge.


"Cloud mining services" that go pop are not cloud mining services at all - they're ponzis. If you look at the few legitimate services, they all have have a "stop mining clause" for when maintenance fees are greater than mining income. Anyone mining for a profit would turn their miners off under such conditions. It's simply common sense.


There are only 2 legitimate cloud mining services left in the game - ASICMiner's AMHash and BitFury's Bit-x. All the others are ponzis and therefore have no hardware costs to recuperate and no maintenance fees to pay. Hashnest has become unprofitable. Bit-x became unprofitable but they reduced their maintenance fees by 33% to keep themselves in the game.


ASICMiner, BitFury, Bitmain and KNC all offer cloud mining services. None of them offer "forever" payouts. Perhaps you should look at some of the legitimate services from the manufacturers instead of the ponzis.


Both ASICMiner and BitFury run their own cloud mining services and both companies will have ~0.2 J/Gh ASIC very soon. In the coming months, you'll undoubtedly see those ASICs power new cloud mining services. I'll be very surprised if Spondoolies don't get in on the action too.

Cloud mining isn't dead, it's about to explode now that most manufacturers are running their own services.

What was the price when cex stopped its cloud mining operations? I think they will definitely offer cloud mining when the price is 300$

it was 230 USD.

many other big miners stopped their activity and cash out the Bitcoin. the boat is sinking  :-[

wait why the hell would they stop? i dont even understand what the heck is going on.. is it all based on difficulty?

The miners they have now aren't making enough to cover the power cost after the price drop since they're mostly older ones. 

There are rumors the reason bitcoin took this huge plummet is off of BFL. They had to sell off their bitcoin to fiat to pay their customers in a lawsuit. Guess what they still have over 90,000 btc left to dump. It seems bitcoin rebounds above 200 mark so thats good to know.

is it all based on the recent price drop? they dont see a profit or something.

Combine that with the Stamp robbery and it's no wonder the price is going down :(

I am not entirely convinced about this explanation. The truth may lie in a few people dumping large amounts for various reasons : those who stole the gox coins or the stamp coins or during an other hack.

many people sold because they know BTC price will go to 50 USD very soon.

Its been bouncing between $200-$220 all day on CEX.IO. If it does go to $50 then I shall be buying more to hold  ;D

It is nicely over 200$ for about 36H but where will it go? To 160$ (or a little less) or 240$. Any moves it makes is likely to induce an opposite reaction to go back to 210$.

Will go to 50 USD ?

How can you know that? Do you have some source?

if they just suspend their service, what makes people want to go back to them?

I thought it was bitstamps influence on the 19,000 btc that was hacked, and everyone was in panic mode. But I guess the BFL thing added more to this as well.

do you think hashnest will do the same thing?

Guys are you kidding me?

What nicknames are those above?

Tristana + Thresh + Udyr = ?

Is it some kind of LOL playing around?

hashnest  will be closed in max 2-3 weeks for now. they are a ponzi.

wait I thought they were by antminer or bitmain or some shit.

call it as you want, the chinesse HYIPs(ponzi). the cloud mining is a ponzi scheme. it is ok to play (even it is a ponzi) if you want but be careful how much you bet. that's all.

well isnt it  a bit different, since they can produce the asics that are missing or whatever. unless cex also produce asics.

The following are the bitcoin ASIC manufacturers that provide cloud mining services:

ASICMiner - AMHash
BitFury - Bit-x
Bitmain - Hashnest
KnCMiner - KNC Cloud

CEX.IO does not. They were using BitFury miners.

Impossible to make money cloud mining in general but it was especially useless on cex with the fees.

I wasn't lucky enough to make any money out of cex.io. But it is bad for those who still hold hashing power with them.

For sure, left holding the bag as they say.

Could you please provide an average earning per month for a normal cloud miner? let's say that he can "invest" 1000 USD

I heard hashnest is becoming a ponzi? I thought they were legit since they produce asics...

id find the link again and put it here, if I run into it again.

I think theres going to be another price drop based on these services going down.. just saying..

I've heard that it might possibly go up as the difficulty might go down. Don't know if this is true but i have heard this.

they only suspended since the btc value is dropped a lot, and itd be negative if they operate on the scale they have.

electricity costs, basic facility cost, etc.

Are folks buying up the gh/s at low price of approx BTC0.0006 in cex in anticipation for them resuming mining again?

I am just curious, as to how come some cloudmining companies shut down and some are still operating, even when it is not profitable ?

Be cautious, the ones opening could be ponzi's/scams however you want to brand it, especially if the gh/s is very low

Be cautious, the ones opening could be ponzi's/scams however you want to brand it, especially if the gh/s is very low
[/quote]

yeah, we saw a great deal of them lately, like the whole pbmining ponzi crap.. and everything similar to it. stating you`ll have 8 year contract bs.

now imagine every major cloud mining site did this, i think the price would go up since it would be more scarce on not wanting to find more btc.

if it does go down, i dont think it would make that much of a difference this is just my view though.

well to be fair, some of the legit cloud mining companies have charged more for "maintance" then they are really paying out for things like electricity so they can somewhat afford to at least temporarily charge less then the actual cost of electricity in order to keep their miners running

Do you ever think that cloud mining will become profitable again?

It still is, just over a longer period of time.

if bitcoin prizes goes upper than 300 dolar
otherway , it cant be profitable
just wait, and pray for bitcoin prizes

This is not true. As it stands now it is not profitable having your GHs running at CEX. They will become even less profitable as time goes on as the difficulty tends to increase (although the adjustment in ~3 days will likely be an exception to this). You need to remember that when you are cloud mining verses "home" mining you are adding an additional layer of people who need to profit which will make it generally less profitable then if you purchased your hardware yourself 

He never said CEX.IO. He said cloud mining. All the manufacturers offer their their own services now so it means being able to mine without having to pay for shipping, PSUs and ridiculously expensive electricity.

That is just one example. A PSU is just a capital expense and can be sold when you no longer need it for nearly the entire cost. You still must (indirectly) pay for shipping as the manufacturer still needs to ship the miners from where they produce them to wherever they will be hosted. Electric costs vary from place to place so your argument that you pay higher electric costs by running them at your home is invalid.

This topic is about cex therefore it should be assumed that he was talking about it. Even if he was not then the overall point of my post is still valid. Mining rewards (net of maintenance) will generally decrease over time as the difficulty increases (although this time around the difficulty will decrease, although not enough to counter the fact that the price of bitcoin has fallen so the net mining reward will still be lower)

hashnest will still be around only because they produce asics as far I know, aka bitmain.

You can't count on reselling heavy used PSUs for almost full price at all. It's also far easier and cheaper to ship all the miners to one central location than to ship them to individual customers around the world. As for electricity costs, most people do not have electricity costs that are less than 0.1 USD/kWh.


It was quite obvious the poster was not talking about CEX but cloud mining in general. Also, that wasn't you point at all. Your point was that cloud mining is unprofitable compared to home mining. That's pretty silly as the maths will show that cloud mining is more profitable for most people.

I would like to see those maths. From what I have seen, the investor, for the most part, has had a choice of either unprofitable or ponzi scheme.

I posted this the other day:

I was unaware. I stand corrected, though I suspect it might be an anomaly.

bitcoin prize is near 300 dolar
so cex can start mining again
we wait news from them..

I don't think they will open up mining again on the "verge" of profit, I think they will wait until it's well in the green before they resume.
But with the high volitility of BTC it may drop back into the red again shortly after.

Hashnest just announcement that they will start mining again
maybe cex will be do same ..

Maybe if we stay higher than 350$ for a few weeks, they will resume mining.

Well my Ghs is gathering "dust" and I got absolutely "zero" from it.  :(

Atleast now, I do not have to deal with negative growth on one of my investments. It was scary to see, me having to owe them for something I invested in. {Those maintenance fee's got out of control }  ???

They probably need a btc at 320$ to break even with the maintenance costs. Why don't you sell your GHS now?

Who would want to buy it, with all the rumours going around that ALL cloud mining are Ponzi's and the possibility that cloud mining will be stopped?

I was hoping for it to start again, and to see if the price would increase, and then dump it on a high, to make up for my loss margin.

If the price for some reason go to the Moon... I will cash out, and be done with Cloud mining for good.

There was an article on Coin Desk that mining could resume when BTC is around 320...  BTC is almost there.  Would it be a good time to start accumulating GHS?  It's been really stable lately. 

Cex.io's cloud mining service wasn't profitable anyways, and cloud mining is just scam. I don't see bad news in this.

But what if GHS/BTC starts trending up and then CEX starts mining again.  There's profit in there.

I've done a few trades with GH/S and BTC on CEX, and I was lucky to get a bit of a profit. The market is generally very dynamic and one day it's low the next hour it's going up again. And I thought it wasn't about the ghs/btc trading price, it was about cex not making the profit they wanted out of this.

That could be it.  But still...  There's profit to be made if say BTC rises to 500 (hopeful), and that you accumulated 10BTC worth of GHS at these prices.  And then it starts trending up.

It wouldn't be a bad trade really.  Although GHS/BTC seems stable now, I'm still waiting (more like scared) in the sidelines.  I might start picking up some when it starts trending above .00080.  It could be a start of an uptrend.

First off, why even buy cloud mining from them right now? It is worthless.

Second of all, extremely high prices nowadays for their GH.

How much does it really cost per GH?  Because this makes me wonder how MN (Mining Consolidated Shares) is sold at Cryptsy at .0074 (right now) per 1.167 GH and it's trending up.

So I am debating (in my mind lol) that GHS/BTC at CEX could be a good investment if:

1.  They start mining again.

2.  Starts trending up.

Found the Coin Desk article I mentioned earlier.


http://www.coindesk.com/cex-io-halts-cloud-mining-service-due-low-bitcoin-price/

Interesting, I would still be wary of high maintenance fee's if/when mining resumes as this was the reason a lot of people sold their GH/s on the site.

Hopefully they've learned their lesson.

I suppose we need to wait until they restore it

I had a few GH/s invested at Cex... I cut my losses.  Fortunately didn't lose big, but it felt bad at the time.
Between Cex & SatoshiDice share investments, I've had my (un)fair share of hard lessons.

Yeap, I'm not a great fan either  :)

just visited cex.io recently , and it changes from mining sites becoming trading sites, what happen  ???