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

[Timetwister]

@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?

I don't care if you can or not buy them for less, but actual Cex.io prices are too high. Those buying are basically betting that difficulty will increase at less than 20% per month (or planning to sell to bigger suckers).

[kickbit]

@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?

I don't care if you can or not buy them for less, but actual Cex.io prices are too high. Those buying are basically betting that difficulty will increase at less than 20% per month (or planning to sell to bigger suckers).

Did you read the article?
I just bought some ghashes, sold them, got some profit. That's simple.

And btw I did the same few days ago. I bought 100 Ghashes. And prices are going down again. I hope I wouldn't lose any btc this time
And of course, any exchange is a game. You can loose or win.

[Macno]

Hi Kickbit, on your calculator site you reference "* GHs sell price - is the lowest price for which you can sell GHS and cover your losses." but I can`t find it on the page?

[Timetwister]

@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?

I don't care if you can or not buy them for less, but actual Cex.io prices are too high. Those buying are basically betting that difficulty will increase at less than 20% per month (or planning to sell to bigger suckers).

Did you read the article?
I just bought some ghashes, sold them, got some profit. That's simple.

And btw I did the same few days ago. I bought 100 Ghashes. And prices are going down again. I hope I wouldn't lose any btc this time
And of course, any exchange is a game. You can loose or win.

You have won because another sucker paid even more, eventually someone will hold this overvalued shares and lose.

[bigb159]

Go to Cex. Open the trollbox and do everything they tell you to do.

[kickbit]

Hi Kickbit, on your calculator site you reference "* GHs sell price - is the lowest price for which you can sell GHS and cover your losses." but I can`t find it on the page?

Yeah, I'm working on user interface... It's not perfect yet.

You can find it if you click on any month row:

[kuverty]

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?

No secret that the price will keep going down, nothing fraudulent there.

[coin123123]

kickbit there is mistake in app title it should be:
"Estimate your bitcoin mining loss"

[kickbit]

kickbit there is mistake in app title it should be:
"Estimate your bitcoin mining loss"

I don't think someone who wants to lose something will use calculator.

[kuverty]

0.052 BTC/Gh, would like to see how the proud holders are doing now

[TechByPC]

As of 201312252035 (Eastern US)

BTC Guild: 0.00183451
Eligius: 0.00179885
EclipseMC: 0.00167789
Ghash.IO: 0.00168542 (0.03009683 GHS * 0.056)

Not a proud holder, just doing an experiment over time. Each pool has a single block erupter that has been running since the 14th. I'm reinvesting all proceeds from ghash.io directly into GHS with the instant buy function, so no fancy trading. As with any less liquid commodity, I wouldn't recommend getting yourself into a situation where you have to sell it at a low in order to make a payment on something. At the very least, it is holding its own with the other pools - it has been up and down.

[xTachibana]

the 100TH mine (now around 520TH) offers 1GH per share at about 60% the price of CEX.io, can be sold at any time (smaller orderbook though), and equipment is constantly being added.

you are investing in a mine operation rather than a single GH. CEX.io sucks for mining, only profits anyone can/will make is from buy low/sell high, not the actual mining income

what is this 100th mine that offers 1ghash for .03 btc each ?

[phiche]

I mined with cex for a couple of weeks and enjoyed trading hashpower and earning bitcoins rather than just having them sit in my wallet.

The problem that I had with them though is that there was no indication of how or when CEX added to the supply of hashpower. I asked them and they said they only do it when the difficulty increased, but basically it was totally opaque. There is no way that I could tell what was the total supply of hashpower in the market or how it was changing.

Despite that, I traded for a while. I thought I basically had the market figured out. With the difficult changing at known intervals I though it would be relatively simple to sell just before the difficulty changed (supposedly the high) and buy just after the change (supposedly the low). But during the last adjustment the market didn't act like that, which gave me the heebie-jeebies so I sold everything (at around 0.072 BTC/GHS) and I'm super glad I did because it crashed hard the last few days.

The motto of the story is: a market is a market. If you plan to trade in it then you're doing it to make money and you need to invest time to learn it and do it properly. Basically I don't have the time, so I'm not willing to take the risk any longer. It was a good learning experience though.

[coin123123]

The motto of the story is: a market is a market. If you plan to trade in it then you're doing it to make money and you need to invest time to learn it and do it properly. Basically I don't have the time, so I'm not willing to take the risk any longer. It was a good learning experience though.

Market is a market when all possibilities are open, unlike cex, where 'goods' have very short expiry date which leaves no option but price going down, and you can't short this 'market' so this is a loose loose situation unless others fall to this misrepresentation.

[Macno]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

[bitpop]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

The point is to enrich themselves and scam you.

[Macno]

Ok, but what do they add? Do they "IPO" new GigaHash and sell them on the exchange?

[bitpop]

Ok, but what do they add? Do they "IPO" new GigaHash and sell them on the exchange?

Bitfury chips supposedly

[phiche]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

Cex has 2 types of mining: the mining which you as an individual bring to the pool (like any other pool), and the hosted mining they offer for people to trade in BTC and NMC. The two do not mix. Cex themselves supply all of the hosting for the hashpower that gets traded on their market, i.e. Cex is in total control of the supply of hashpower in the market - they are supposed to act as "market makers".

The way that Cex does it is they add more hashing hardware in their hosting facilities and then they sell it onto the market at the market rate (which means that Cex earns the bitcoins for these trades) and the price is, of course, set by supply and demand. If Cex did not increase the supply of GHS in the market, you would actually see a rise in the cost per GHS because of more miners coming to the pool with greater amounts of bitcoin fighting over the same amount of supply (yes, this would happen despite the return on holding GHS decreasing as the difficulty increases).

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price. They could be as clumsy as adding 5TH/s and dumping it all onto the market at once causing the price to crash, or they could be smarter and dribble it in over time. You just don't know, but I guarantee they are not as smart or as experienced as the traders in a commodities market.

[bigb159]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

Cex has 2 types of mining: the mining which you as an individual bring to the pool (like any other pool), and the hosted mining they offer for people to trade in BTC and NMC. The two do not mix. Cex themselves supply all of the hosting for the hashpower that gets traded on their market, i.e. Cex is in total control of the supply of hashpower in the market - they are supposed to act as "market makers".

The way that Cex does it is they add more hashing hardware in their hosting facilities and then they sell it onto the market at the market rate (which means that Cex earns the bitcoins for these trades) and the price is, of course, set by supply and demand. If Cex did not increase the supply of GHS in the market, you would actually see a rise in the cost per GHS because of more miners coming to the pool with greater amounts of bitcoin fighting over the same amount of supply (yes, this would happen despite the return on holding GHS decreasing as the difficulty increases).

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price. They could be as clumsy as adding 5TH/s and dumping it all onto the market at once causing the price to crash, or they could be smarter and dribble it in over time. You just don't know, but I guarantee they are not as smart or as experienced as the traders in a commodities market.

+1 Best explanation I've heard so far.