Mining with CEX.IO or why do I not believe skeptics

[Macno]

I just startet with a few satoshis to get a feeling.

I bought this:

2013-12-21 18:23:15    0.00299372 GHS   0.00591770 GHS   BUY   Bought 0.00299372 GHS at 0.06839982 BTC
2013-12-21 18:23:15    0.00292398 GHS   0.00292398 GHS   BUY   Bought 0.00292398 GHS at 0.06839981 BTC

And now my balance is minus 1 satoshi?

2013-12-21 19:02:40   -1e-8 BTC   -0.00000001 BTC   MINING   Block #276256, /Share: 0.000000000862, Fee: 0.00000001

Was the fee higher than my reward due to my small investment?
 

[Timetwister]

CEX.io ghash/s are still very overvalued. If price stays so high is because there are still enough suckers buying, but in the end value and price always match, and those holding ghash/s at that time will lose a lot. It only makes sense to invest at current prices if difficulty increases very slowly the following months and no one else offers ghash/s at lower prices.

[Macno]

@Timetwister:
Where can you buy GHash cheaper and comparably safe and easily tradable? I`m not talking about ASIC miners being delivered (or not), but cloud mining like cex.io?

[Frozenace]

Renting a suitable environment to put your rig has also been priced in, I hope... if I could, I would host a majority of my mining power in the cloud, but I've already have some physical miners that need maintenance.

[Colin Miner]

/Share: 0.000000000862, Fee: 0.00000001

The earnings look much lower than the fee, this is probably why your earnings are a minus,

Add some more hashing power to break out of that cycle or point some mining power at their private pool to boost your share.

[kickbit]

You still have to pay electricity buying hash from cex.io. It is already priced in

Yes, but they have pretty low prices

[kuverty]

Your post is quite contradictory, you're saying you don't believe those who say it's not profitable to hold and you must trade the Gh/s in order to make a profit and yet you are doing just that. Next time you buy Gh/s, just hold them and wait until you break even. I would not say holding for two weeks or a month is very long term.

[high110]

Holding GHS long term is not part of this game.  You end up losing big.  It's very hard to ever break even holding the GHS on cex.io.

[Macno]

And what if you keep reinvesting the payouts inluding those altcoins (nmx, ixc and dvc)?

[joele]

And what if you keep reinvesting the payouts inluding those altcoins (nmx, ixc and dvc)?

You will end up losing as well, big time.
The only way to make profit with cex.io is by trading, buy low and sell high.

[Macno]

Only if difficulty keeps climbing at this pace, right? That`s something I don`t quite get in general...it`s a pity that simply buying bitcoins is so much more profitable than investing in the infrastructure. I also like having a (small) btc cashflow and supporting the network, it really sucks that you loose big time if you do that instead of simply hoarding the coins.

[high110]

Only if difficulty keeps climbing at this pace, right? That`s something I don`t quite get in general...it`s a pity that simply buying bitcoins is so much more profitable than investing in the infrastructure. I also like having a (small) btc cashflow and supporting the network, it really sucks that you loose big time if you do that instead of simply hoarding the coins.

It's b/c Cex.io allows increase in liquidity so that it becomes more valuable. Being able to sell the GHS at any moment, gives it the higher value.  Hence, if you're in it for the long term, it makes more sense to do a group buy from a trusted person or just outright buy a miner from one of the big names (I would avoid BFL).   

I tend to buy right after a difficulty change from Cex.io, hold  and sell about .5 or .7 times through to next difficulty change.  Seems to be a working formula.  I might keep some BTC for buying low and selling high if the opportunity presents itself...but this requires time and effort (day trading).  Not all of us have the time while holding a day job.

[kuverty]

And what if you keep reinvesting the payouts inluding those altcoins (nmx, ixc and dvc)?

How would pouring more money into it help to break even? You would be just investing your profit in addition to the original money, why would it be easier to break even with that? So no, it does not help.

[Macno]

How would pouring more money into it help to break even? You would be just investing your profit in addition to the original money, why would it be easier to break even with that? So no, it does not help.

Yes, sorry, I "calculated" in BTC terms as I consider NMC etc do be worthless "addons"...and the reinvestments in GHash let the cash flow grow and the price drop might be overcompensated...some wishful thinking...

By the way: when you sell GHash, who gets the rewards from the mining jobs they already started but that haven`t been finished yet? When you buy GHash, you only get the "new" rewards, don`t you? I guess cex.io get`s this difference?

[aceking]

the only way you can make a profit at cex is by trading.

[msc_de]

In long term man has to sell ghs out otherwise there must be a big loss, three months for bitcoin mining industry is long term. Trading, mining and meanwhile well prepared to escape 

[kuverty]

How would pouring more money into it help to break even? You would be just investing your profit in addition to the original money, why would it be easier to break even with that? So no, it does not help.

Yes, sorry, I "calculated" in BTC terms as I consider NMC etc do be worthless "addons"...and the reinvestments in GHash let the cash flow grow and the price drop might be overcompensated...some wishful thinking...

By the way: when you sell GHash, who gets the rewards from the mining jobs they already started but that haven`t been finished yet? When you buy GHash, you only get the "new" rewards, don`t you? I guess cex.io get`s this difference?

I see getting paid every time the Ghash.io pool finds a block, so the rewards go to whomever that's holding the Gh/s when a block is found. So if you sell the mining power, you won't get anything for the time after the last block found by the Ghash pool. But blocks are found so often that it isn't really significant.

[bitpop]

It's like a pyramid scheme. Only reason you're making money is by conning someone else. This is fraud. Last person holding your worthless ghs loses. Hot potato anyone?

[MWNinja]

The payout is PPLNS so you will continue to see a diminishing payout on GH/s that were sold for approx 12 hours. Ghash.io is a damn good pool, I love the shareholder feature for managing group-buy hardware payouts. I bought some GH/s initially but since sold them when the price was right. Still have a few GH/s from referral and acquired from trading NMC. Really the price of a GH should be around .04btc right now, so it is expensive ~ but people are willing to pay a premium for not having a houseful of loud hot miners.

[msc_de]

Since 1T TO3T MINER ON THE WAY AVAILABLE, THE CEX PRICE MUST BE DOWN.

TONIGHT IS 0.062BTC LOW