I have pointed my own miners to CEX.IO to mine scrypt coins and have been happy with the results so far. I was going to use some of my profits to buy some of their GHS, as it sounds attractive having cloud based miners. I am having some difficulty trying to figure out the profitability part though, and hope someone can enlighten me.
According to the profit calculator on their site, if I buy say 10 GHS at current rates it will cost me approximately 0.11488 BTC for those 10 GHS. Going to the 'Estimate Profit" calculator I enter in my theoretical 10 GHS and leave the other settings at default I get a cumulative profit of only 0.05 BTC before it stops returning anymore. This is not even 1/2 of what it would cost me to purchase the hash-rate.
I cannot believe people are buying hash at twice the expected return, so I assume I need to change from the default values in the calculator to make proper projections. I further assume the maintenance fee and pool fee cannot be changed from 3% each? If so, please let me know. This would then leave the values for current difficulty (again I assume this is from the block chain), difficulty increase per month (default 50), conversion rate and conversion increase per month. If someone can help give me the appropriate values to base my estimates on I would be extremely thankful.
If you are looking at BTC, it isn't profitable by just cloud mining. The growth of the pool size (which get reflected with difficulty) and the fees will kill your profits. The biggest problem is that GHS is still way overvalued and the price of it drops faster than the mining proceeds build up. Trading can make up the difference and the income from mining can make the trading even more profitable. However, trading fees are going to kill that. I used to love CEX.IO, but I don't see how to make money there anymore. I actually pulled out over a month ago at a .5 BTC loss, but I'm easily made that back a scrypt.cc. That is a much safer place to mine.
I joined scrypt.cc tested it out ran a ad campaign and dumped a bitcoin into it. Left it be then I started seeing some ponzi sites popping up all over in the gambling place and from there I just started thinking on how a scrypt farm was really capable then my speculation started to set in that scrypt.cc is nothing more then a ponzi scheme. I am not saying its true or not but they dont let you cashout in anything other then what you can buy the scrypt hashing power with. They don't inform you on which coin is mined nor an option to keep that coin. It could be legit but I like to see data in my cloud hashing that I use.
When I joined cex.io it was shortly after I got my 3 BFL units in October or november. I was never one to really mine on the go-to or largest pool I liked the underdog pools where more luck was involved. I really thought the idea of being able to just increase my hashing power with portions of my earnings was an amazing offer. Last week I was curious to see my all time profit that i've withdrawn and what i've deposited and compare to some calculators. I didn't hit no jackpot but I was able to keep up with difficulty rates maintain a steady monthly payout and made more mining there then I would have if I just kept my 120 GHS on some other pool.
Now I didn't partake to much in the day trading aspect of the GHS however I made sure when I purchased more GHS it was during panic sells or when I seen a abnormally large red candlestick for no apparent reason. I have sold out on GHs completely to at certain high peaks but it wasen't very consistent and I can say I've made some bad trades to one was rather recent about a month ago and lost nearly a entire bitcoin. Since i've been on cex I haven't needed to upgrade any of my hardware and gained roughly 200GHS alone in referral bonuses extra.
The price per GHS they offer is not very far off from buying physical hardware from another store that most likely wont deliver for weeks or months and by the time you get it its already lost its value. The joy of having the ability to own 1000GHS right this minute is something everyone has wanted and the cool thing its not a contract. It really all boils down to preference, careful trading, and of course risk no matter which way you look at it.
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