[Not] Good price at CEX.io

[high110]

I sold some of my GH, made 100% profit in a week.  Still got some GH mining away.

I bought 32.7 but got extra 17Gh for referring people. Plus my blade is aiming in to ghash.io so at this moment hashing with 70Gh which 17Gh are free.
Already made 0.50btc profit withing a week.
I know its not a lot but at least something happening better than most hardware and losses of poor people who preorder BFL and other scams.

Nice, I'm still waiting for the price to drop and I have 0 referral

Wow - that's amazing!  I'm also waiting for the price to drop so I can get back in.  I was really spreading the word earlier this week.  I got some of the GM's upset so...I've toned it down.  CEX.io is still a really good idea.  Only problem is, I guess they're trying to make some money... but they need a better fee system.  The one the want to implement might be too costly =/

17 GH is insane...that means the ppl you referred are mining like 566 GHS - sweet dude!

[bigb159]

Yeah, that fee looks way too steep, but it may be a good price for noobs who just want to play at mining. The beauty of this system is that apparently your GH/s increases over time. There's no way my hardware will do that.

[Klubknuckle]

No thanks, I calculated and gave me negative returns..

[frankenmint]

No thanks, I calculated and gave me negative returns..

  so you're holding onto your hashpower forever?  why not just play the buy/sell game for gains?

[zvs]

not sure I understand this - can I short the contracts?  If I do and withdraw the BTC how would they chase me for the bitcoin I would need to pay to the buyer of the contract? If I can't short the contracts, why not? Take away that facility and it is not a real market.
Isn't this just a prettier way of selling one of those nefarious perpetual mining bonds - the value of which only decreases over time?

There is no way to short these contracts, unless you are the issuer.

And you are completely correct in saying that this is just another perpetual mining bond. I have no idea why this construct is suddenly so popular when it doesn't offer anything of value that hordes of previously launched PMBs don't. I guess it's the referral-bonus that turns people into walking advertisement boards.

In any case, these things aren't going to make the 'investor' any money at their current price, except if you get lucky with daytrading them. With the price at its current levels, cex.io can just slowly release more and more units (taking care not to crash the price) and rake in the profits. And if they ever drop in price enough to become profitable, cex.io can just buy them back gradually on the market.

A PMB that can't be shorted is a money-making-machine for one entity only: The issuer.

CEX is just another middle man that want profits for themselves too. Guess its still cheaper to buy ASIC directly...

i think it's cheaper just to buy bitcoins directly,  buying ASICs leads to a 100% chance of losing money

[Atroxes]

I realize they need some sort of way to make money at cex.io to run things, but $0.001 maintenance fee per GH/s PER HOUR... wow. That's alot. That's $24 a day just in maintenance to keep 1TH/s online through bought Cex.io GH/s... They just killed themselves :/

[xtonn]

I realize they need some sort of way to make money at cex.io to run things, but $0.001 maintenance fee per GH/s PER HOUR.. They just killed themselves :/

I agree - that's about 9% of your mining income per day? That's too much.

I think they would end up encouraging people to short sell in order to keep their average ghash per 24h as low as possible - maybe that's the point(?).

[MTBmanTT]

The price right now is WAAAYYY to high anyway you want to look at it.

Last week it was down to .08xxx range which seemed more appropriate given the current difficulty and value of BTC.  I cannot believe it is up to the .10xx per GH/s as of now. It must be a rush of newbies on there, I cannot justify investing with them at the moment.

[Xian01]

It must be a rush of newbies on there, I cannot justify investing with them at the moment.

 I was just thinking the same thing; re: influx of newbies. It just doesn't make sense to be priced at the current levels. I was hoping to reinvest mining proceeds from my farm @ ghash.io into GHS as an experiment, saw the prices, verified the math someone did... LOLWUT ?

 If it gets back down to 0.07 I might consider it, but for now, I'll just watch the markets @ ~0.1 BTC/GHS and boggle.

[cshelswell]

The same thing's going through my head. I can only think people aren't buying to mine but to re-sell. I was kind of thinking though if you bough 100 GHS and got stuck with it then you really wanted a good price. Every morning When I see the price has risen again it's just crazy.

[xtonn]

I can only think people aren't buying to mine but to re-sell.

^^^^^ -- I agree. I just sold my first lot of ghash and ended up in the black (made btc). I bought the ghashes bit by bit over several days and then sold it alltogether. The price just dropped below where I sold too!

[balanghai]

Still resisting at around BTC0.108 so i guess it will hold on for days if not weeks.

[Vani]

Do you think the (still unknown amount of) maintenance fee that is planned on the first of November will influence the price?

[balanghai]

The fee is $0.01 per hour. So it's not that bad. It's dollars not BTC. also I think it would somehow increase the price initially to cover the capital and then go down to BTC0.4 and then correct at around BTC0.6. Let's see what happens.

[Vani]

I'm very curious too see what will happen. Last days I watched the price all the time - like an addict 

[Xian01]

The fee is $0.01 per hour. So it's not that bad. It's dollars not BTC. also I think it would somehow increase the price initially to cover the capital and then go down to BTC0.4 and then correct at around BTC0.6. Let's see what happens.

 How ?! It makes absolutely zero sense for GHS/BTC to be valued at BTC0.6 given you can get physical hardware doing 1GHS for at least half the price.

 Did you perhaps mean BTC0.06 ?

[high110]

yeah i think he meant .04 and back up to .06.

[corsaro]

So i was just tapping some numbers in to http://mining.thegenesisblock.com and i might have this wrong but it looks a lot like you need a price of about 0.05 BTC per GH to turn a profit?

Am I missing something?

yes, you are right. At the moment, considering future difficulty increases, no mining equipment should be paid more then 0.03-0.04 bitcoins per gigahash.
Anyway, bitcoin will probably continue to surprise us, and none will have last word.

[balanghai]

Well the value is holding up and I see good digits. It's numbers game, the more volume, the more profit. Think about a stash of 1 TH/s mining for a day with a starting x price, the next day, selling at the same x price + the 1 day of 1TH/s mining.

Well depends on your trading skills and projection instinct. If you're too scared, stay away and mine with BEs.

[wunkbone]

They are charging a fee soon and its going to drop....