Buy Hashing power at CEX.io - do you think it's legit?

[Zeek_W]

Without a increase in difficulty it would take around 2 to 3 months to hit ROI. But difficulty will increase and the price will drop, so I guess this is not profitable.

Hardware break even: 76 days
Net profit first time frame (3 months): 3.95 USD

You can't factor in second hand value of Gh/s though? It's something that still puzzles me

[Mitchell]

Without a increase in difficulty it would take around 2 to 3 months to hit ROI. But difficulty will increase and the price will drop, so I guess this is not profitable.

Hardware break even: 76 days
Net profit first time frame (3 months): 3.95 USD

You can't factor in second hand value of Gh/s though? It's something that still puzzles me

Oh yeah. I totally forgot about that. But still, that price will just go down in the coming two months, I don't think it changes a lot.

[Zeek_W]

Without a increase in difficulty it would take around 2 to 3 months to hit ROI. But difficulty will increase and the price will drop, so I guess this is not profitable.

Hardware break even: 76 days
Net profit first time frame (3 months): 3.95 USD

You can't factor in second hand value of Gh/s though? It's something that still puzzles me

Oh yeah. I totally forgot about that. But still, that price will just go down in the coming two months, I don't think it changes a lot.

I am valuing it at 50% what I paid. Nothing to quantify it, just speculation.

[monbux]

Without a increase in difficulty it would take around 2 to 3 months to hit ROI. But difficulty will increase and the price will drop, so I guess this is not profitable.

Hardware break even: 76 days
Net profit first time frame (3 months): 3.95 USD

Now, if CEX.io is legit, then I think you are calculating it wrong.  You are able to sell these GH/s back to the market, for the same, or lowered price.  Or maybe even higher price.

[Zakryze]

Without a increase in difficulty it would take around 2 to 3 months to hit ROI. But difficulty will increase and the price will drop, so I guess this is not profitable.

Hardware break even: 76 days
Net profit first time frame (3 months): 3.95 USD

Now, if CEX.io is legit, then I think you are calculating it wrong.  You are able to sell these GH/s back to the market, for the same, or lowered price.  Or maybe even higher price.

Why would GH/s be priced higher when the difficulty becomes higher? 

have you ever heard of the greater fool theory?

[icem3lter]

Without a increase in difficulty it would take around 2 to 3 months to hit ROI. But difficulty will increase and the price will drop, so I guess this is not profitable.

Hardware break even: 76 days
Net profit first time frame (3 months): 3.95 USD

Now, if CEX.io is legit, then I think you are calculating it wrong.  You are able to sell these GH/s back to the market, for the same, or lowered price.  Or maybe even higher price.

Why would GH/s be priced higher when the difficulty becomes higher? 

have you ever heard of the greater fool theory?

http://en.wikipedia.org/wiki/Greater_fool_theory
 

Not unrealistic, considering the best profit of ASIC miner is sell it immediately after you receive your preorder

[pedrog]

Legit, but doesn't seems to be a good deal for the buyer...

[po1992one]

Obviously, if it was good deal, the CEX.io would not sell the hashing power

Unless difficuty starts falling soon, but it wont happen

[Novalok]

Its really not a bad deal.
Look at it this way. Currently you purchase Ghash ~.135-.140 which in turn generates ~.00005000-~.00005500 at the current difficulty per block currently averaging 3 blocks per hour so roughly .00015000 per hour.
Now with that your looking at .0036 BTC a day. which in turn at this difficulty turns to .108 BTC a month.
Now take your .108btc and sell your Ghash after 30 days, if you get more than .03-.04 for it... Which you will. You have made not only ROI but a small profit.

So if you by 10Ghash or hell make it 13 for safe measure, you should make ~1BTC at a current cost of 1.35-1.6 BTC. In which after you make your 1BTC, you sell back the Ghash at ~ 1BTC

So see its all about money now. vs money later

[clock27]

im lovin cex.io so far so good IMO keep up the good work cex peeps

[udet4food]

Its really not a bad deal.
Look at it this way. Currently you purchase Ghash ~.135-.140 which in turn generates ~.00005000-~.00005500 at the current difficulty per block currently averaging 3 blocks per hour so roughly .00015000 per hour.
Now with that your looking at .0036 BTC a day. which in turn at this difficulty turns to .108 BTC a month.
Now take your .108btc and sell your Ghash after 30 days, if you get more than .03-.04 for it... Which you will. You have made not only ROI but a small profit.

So if you by 10Ghash or hell make it 13 for safe measure, you should make ~1BTC at a current cost of 1.35-1.6 BTC. In which after you make your 1BTC, you sell back the Ghash at ~ 1BTC

So see its all about money now. vs money later

LOL. Are you sure you understand the difficulty will continue to increase for few months for sure? It shows no signs of slowing don, still at a rate about +30% every 10 days

[Mitchell]

Aaaaand, I just received spam from them. So my trust in them (the little I had) is now completely gone. If you need to send spam as a company, you are either a huge scam or even a bigger scam.

[pedrog]

Aaaaand, I just received spam from them. So my trust in them (the little I had) is now completely gone. If you need to send spam as a company, you are either a huge scam or even a bigger scam.

Terms and Conditions may apply, it's not spam if you gave your email address and agreed with the terms.

[odolvlobo]

Its really not a bad deal.
Look at it this way. Currently you purchase Ghash ~.135-.140 which in turn generates ~.00005000-~.00005500 at the current difficulty per block ...

There are many things wrong with what you wrote. Let's fix it.

First, the mining:

Currently, 1 GH/s mines about 0.000013 BTC per block, or about .0263 BTC per 2016 blocks. The difficulty changes every 2016 blocks and it takes about 11 days to mine those 2016 blocks. For many months now, the difficulty has risen about 30% each time. Lets assume that will continue for at least another month, and that 1 GH/s will mine 30% less every 11 days.

This table shows how much 1 GH/s will mine in about a month

Days	| Income	| Total Income
11	| 0.0263	| 0.0263
22	| 0.0202	| 0.0465
33	| 0.0156	| 0.0621

So after about a month, 1 GH/s will mine a total of about 0.0621 BTC (not 0.108).

Now, the price:

The current price is about 0.14 BTC.

After a month, 1 GH/s will mine only about 0.0000059 BTC per block. That's down about 55% from the beginning of the month. Since 1 GH/s mines 55% less than it used to, its price is going to be 55% lower, or about 0.076 BTC.

Finally, the total:

If you sell your 1 GH/s after 1 month, you will get 0.076 BTC for it (not .03-.04). Add the 0.0621 BTC you mined and you now have 0.1381 BTC.

You paid 0.14 BTC, so you lose 1.3%. Notice also that the price is dropping more than the amount of the income. Basically, the longer you hold it, the more you lose.

Now, let's assume you pay 0.10 BTC for 1 GH/s.

You still mine 0.0621 BTC, and you still sell the shares at 55% less, or 0.045 BTC, but your total is 0.1066. You paid 0.10, so you have made 6.6% in a month. Not bad.

I don't know why people pay 0.14 BTC for 1 GH/s.

[Mitchell]

Aaaaand, I just received spam from them. So my trust in them (the little I had) is now completely gone. If you need to send spam as a company, you are either a huge scam or even a bigger scam.

Terms and Conditions may apply, it's not spam if you gave your email address and agreed with the terms.

I never gave them my e-mail. Never ever. I don't use anything that is related to them.
Yes, my e-mail is public, but that doesn't mean I want spam.

[Rannasha]

CEX.io is just like all the other Perpetual Mining Bonds (or Mining Contracts) that have been traded on a variety of exchanges. Getting a decent estimate for a good price for them is not hard and you'll find that they are almost always overpriced.

A fun back-of-the-envelope calculation using the sum-formula of a geometric series and some high-school algebra gives you a nice closed formula for the total amount mined assuming a certain difficulty increase each time (taking into account that the period between difficulty-adjustments depends on the increase):
14 X / D
(X = amount earned per day, D = fractional difficulty increase per adjustment, so 0.3 = 30% increase).

Plug in the amount mined at the current difficulty with 1 GHash/s (0.001878) and an increase of 30% per adjustment and you'll find that this 1 GHash/s will only ever mine 0.08764 BTC in this model.

So I would not pay anything more than that if I assumed a 30% increase per adjustment (which for now is still reasonable). In fact, the price of each unit will have to be below the expected earnings, since it takes time to earn the money (and money later is worth less than money now) and you're exposed to counterparty risk.

EDIT: Regarding re-selling the shares: In a rational market, the price of the shares is proportional to the future expected profits. If the expected profits go down by 50% due to difficulty increases, the price of the shares should go down by the same amount. So if your expected profit right now does not add up to the price of the share, don't expect to compensate for that by selling the shares at some later time. Of course, there may be people willing to pay stupid premiums for these types of assets (and the fact that the price of them is still so high is a testament to that), but that's more speculation/gambling rather than investing. And the general awareness that mining is not profitable (both through own hardware and through shares) is increasing, so it'll be less likely to find a "greater fool".

[hunnaryb]

I don't know why people pay 0.14 BTC for 1 GH/s.

Because it is hard to estimate the exact profitability. If current difficulty increase trend continues, you loose a bit. But IF difficulty increasing slows down soon, you may profit

[pedrog]

Aaaaand, I just received spam from them. So my trust in them (the little I had) is now completely gone. If you need to send spam as a company, you are either a huge scam or even a bigger scam.

Terms and Conditions may apply, it's not spam if you gave your email address and agreed with the terms.

I never gave them my e-mail. Never ever. I don't use anything that is related to them.
Yes, my e-mail is public, but that doesn't mean I want spam.

Oh, then it's some other bitcoiner that has your email and is trying to gain referrals, yes, that's spam!

Can you see a referral link in the email?

[odolvlobo]

I don't know why people pay 0.14 BTC for 1 GH/s.

Because it is hard to estimate the exact profitability. If current difficulty increase trend continues, you loose a bit. But IF difficulty increasing slows down soon, you may profit

In general that is mostly true, but there are details that you are overlooking.

If the difficulty trend continues, you lose a lot. The difficulty has been rising 30% for 8 months now. If it continues at that rate you lose about 40% of your investment.

My optimistic model assumes that the 30% rate slows down to only 7% in a few months, and it shows that you still lose money buying 1 GH/s at 0.14 BTC.

Basically, it is very unlikely that anyone buying 1 GH/s at 0.14 BTC is going to break even, and it would take a miracle to see a profit.

[aussie_striker]

Anyone got an update regarding this company. I see some people promote it but on the site there is no mention of referral commissions. What's the deal?

Since it is a couple of months since the last post what do people think now, is it a scam or good or ok but will be no good in future?