Why does CEX.IO "lend" it's miners to others?

[MasterBizon]

I found about CEX.IO and it's cloud mining, and I'm wondering why they offer their GHs to people...

Wouldn't it be much more profitable for them to just keep their  miners for themselves and reap all of it's profit?

[Argwai96]

they do it because it is way overpriced. i wouldn't use them.

[Sniperdude]

with the rise in difficulty for BTC and the random times between how fast pools fine blocks, they can sell mining power for a steady income. you might make money you might not, but CEX.IO will be making money regardless.

Its a gamble and the house always wins.

[StealthyCactus]

similar principle as a casino, you may or may not make money, but they always will.

[Gimmelfarb]

yep, steady money is a good way to go..... mining speculation is a tough gig....

[|Fr0sty|]

What surprises me is producers haven't moved in a similar direction, selling computing power rather than shipping hardware. That business model would have been severely more profitable for them, I think.

People are rightfully suspicious and reluctant with the shipping time and cost and the possibilities of broken hardware, warranties involved, etc. If you could just buy computing power from the producer, prices are lower because the middle man is cut out and there is no risk and hardware maintenance involved.

[MasterBizon]

Would you suggest I invest my btc into it instead of have them sitting in a wallet? Because that's pretty much where they are right now...

[AustenN]

Would you suggest I invest my btc into it instead of have them sitting in a wallet? Because that's pretty much where they are right now...

After running some numbers I found that for every bitcoin you invest into Ghash on CEX.IO you get .1 back... This doesn't make any sense because people are trading all the time! Someone please explain to me how it could possibly be so overpriced and people still buy into it in huge quantities. Is my math wrong? They are currently selling a GHS/BTC for .075 bitcoins... which would yield about .007 BTC at this current difficulty.

[chandrew]

you run the chance that GHS goes down

someone made a cex.io calculator: http://www.ltcinstawallet.com/cexio-reinvest/ - the profits hit a limit

[AustenN]

you run the chance that GHS goes down

someone made a cex.io calculator: http://www.ltcinstawallet.com/cexio-reinvest/ - the profits hit a limit

So lets say I bought .01 BTC for GHS on CEX.IO. At the current rate of .075 BTC/GHS I would get .133 GHS or 133 MHASH. What time period would I get that hash rate for?

[AceWallen]

i think it is because mining power is way over-priced there. i would not recommend it!

[Peters920]

I found about CEX.IO and it's cloud mining, and I'm wondering why they offer their GHs to people...

Wouldn't it be much more profitable for them to just keep their  miners for themselves and reap all of it's profit?

No, because they are selling for a higher price

[AustenN]

It is still nearly 3 times more profitable than buying those ASIC erupter usbs :p I see it as not a way to make money but an easy way to get into the bitcoin hobby. You don't need any experience or knowledge of computer things to get into mining.

[chandrew]

you run the chance that GHS goes down

someone made a cex.io calculator: http://www.ltcinstawallet.com/cexio-reinvest/ - the profits hit a limit

So lets say I bought .01 BTC for GHS on CEX.IO. At the current rate of .075 BTC/GHS I would get .133 GHS or 133 MHASH. What time period would I get that hash rate for?

you keep it forever, in theory, until you sell or CEX.io goes down.

[niothor]

It is still nearly 3 times more profitable than buying those ASIC erupter usbs :p I see it as not a way to make money but an easy way to get into the bitcoin hobby. You don't need any experience or knowledge of computer things to get into mining.

Everything on this planet is more profitable than buying usb miners .

[mindfulmojo]

The main way you make money with cex is by becoming a day trader... I've definitely made money but it's stressful.

What I recommend is to trade (buy low, sell high, hopefully), make a good a profit. 

By doing this you can either keep your profit, or you can have your gh/s at a discount and hold on to it.