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

[TechByPC]

the price is down and down agian

Down? 27.3. was price 0.0105 and now is 0.0114, I've covered my loses from past two weeks and I'm at zero balance now. A time to quit I guess But I'm still curious about reasons for growing. Maybe it's related to bitcoin price loses...

Yes, it can't be anything logical. You won't return .003 BTC with 1GHS between now and the FHA contracts, so there is no reason to purchase at the current rates. It's silliness. FHA is an obvious better value at this point.

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[xstr8guy]

Definitely a losing deal unless you magically make money day trading GH/s themselves.

The organization itself can dump as much hashing power as they want on the market making you a perpetual bag-holder.

They've basically invented a business model where they can be in perpetual IPO mode and constantly create new shares.

They don't even need to actually have the hardware to back all the GH/s they issue, because the market price they can dump into is always higher than that amount of GH/s will ever mine until the end of time. They could in principle operate as a Ponzi for a long time without anyone noticing it, as long as there are sufficient people willing to hook up to Ghash.io to make its total hashrate look plausible, because the immediate BTC sale of any GH/s they dump onto the market will pay off any simulated mining earning plus generate a profit.

Ridiculous.  They obviously have the hashing power.  Check blockchain.info.  They're the biggest portion of the network by far.  Not that I think CEX.io is a good way to make money.  Far from it!

[lucates]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

But in real life $10K would buy you a heck of a lot more than 10 GHS.

Now I see the problem, Currently you can buy 600 GHs from butterfly labs for $4680 and you have to pay electricity cost. Same 600 GHs will cost around $8500 through cex.io - not a great deal, but I can imagine when next batch of asic miners will be shipped and GHS/BTC will fall that for few months this could be profitable

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

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

[fullintegrity]

I have been mining and currently have just under 60 GH/s and also 11 antminers (2 GH/s) here in the house, along with a gridseed (dual miner) and have found all this VERY INTERESTING and some worthwhile to learn. I do think the article was perfectly written to help the newbie understand what they are getting into, wish i had read it prior, but i went at this very blindly after dropping about .5 btc on btce and playing for 3 months while the market crumbled, still managed to break even, so what they heck, now im making more btc than i would if i hadnt gotten into it.
thanks for sharing. 

[silvestar]

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably  because of the price rise in the past few days).

[bomberb17]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

[Anotheranonlol]

PETA is considerably more profitable than CEX

PETA - 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

[Majixagi]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

I mostly agree with this, however I'd point out that cost has been going up lately, which is counterintuitive. Right now I'm down to less than 1GHs because I expect a sell off and then I'll buy back in.

[Houseman]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

I mostly agree with this, however I'd point out that cost has been going up lately, which is counterintuitive. Right now I'm down to less than 1GHs because I expect a sell off and then I'll buy back in.

This is exactly the CEX value proposition when compared to the fixed contract cloud miners. With CEX you can buy/sell your GHS at anytime in very liquid market. You have the chance to buy - mine (for however long)- sell. Profit is possible both from mining income and GHS trading.

[Anotheranonlol]

PETA is considerably more profitable than CEX

PETA - hashrate per share 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

Just to prove the point above,

Todays PETA prices:

the mining operation has increased, now each share is entitled to 17.2GH instead of 15GH as earlier.

PETA - hashrate per share 17.2GH = last market price 0.0715 BTC
PETA- 1GH =  0.0041 BTC

[bomberb17]

PETA is considerably more profitable than CEX

PETA - hashrate per share 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

Just to prove the point above,

Todays PETA prices:

the mining operation has increased, now each share is entitled to 17.2GH instead of 15GH as earlier.

PETA - hashrate per share 17.2GH = last market price 0.0715 BTC
PETA- 1GH =  0.0041 BTC

Like I said however, there is a risk involved into all this (website shutdown/account hack etc.)
Both investments are risky, peta just looks even more risky compared to cex.
 

[zvs]

Not that I'm too keen on either price, but buying on cex.io at 0.0072 or whatever it's at now would be stupid or possibly uninformed, since MN2 on Cryptsy is the equiv of .0075 per GH right now, and it doesn't charge that 30%+ maintenance fee that cex.io does (or is it 40% now, after the difficulty increase?).

ed: I'll call it 35% after difficulty increase, since it used to be 35%, they cut the fee by 13%, but the difficulty is about to go up 13%.... so then the MN and MN2 on Cryptsy should be valued near .001.... or cex.io should be worth a shitload less.

i'd need cex.io around 2.5c (ed2: oops, I mean 0.0025) for me to be interested, the cryptsy stuff around 4c (0.004)

[zvs]

Not that I'm too keen on either price, but buying on cex.io at 0.0072 or whatever it's at now would be stupid or possibly uninformed, since MN2 on Cryptsy is the equiv of .0075 per GH right now, and it doesn't charge that 30%+ maintenance fee that cex.io does (or is it 40% now, after the difficulty increase?).

ed: I'll call it 35% after difficulty increase, since it used to be 35%, they cut the fee by 13%, but the difficulty is about to go up 13%.... so then the MN and MN2 on Cryptsy should be valued near .001.... or cex.io should be worth a shitload less.

i'd need cex.io around 2.5c (ed2: oops, I mean 0.0025) for me to be interested, the cryptsy stuff around 4c (0.004)

err, that'd be MN would be around .01, MN2 around .1.. if you based it off of what people are paying on cex, anyway... gd, fixed

[bomberb17]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

Ok so I'll try to take the fee into account.
From here
https://cex.io/maintenance
fee is $0.26/month for 1 GHS
which makes 0.26/660 = 0,00039 BTC/month
which makes 0.000013 BTC/day

So for the current difficulty, each GHS makes a net of about 0.000035 BTC/day.
For the upcoming diffuculty, each GHS will make roughly 0.00003 BTC/day.

[zvs]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

Ok so I'll try to take the fee into account.
From here
https://cex.io/maintenance
fee is $0.26/month for 1 GHS
which makes 0.26/660 = 0,00039 BTC/month
which makes 0.000013 BTC/day

So for the current difficulty, each GHS makes a net of about 0.000035 BTC/day.
For the upcoming diffuculty, each GHS will make roughly 0.00003 BTC/day.

and on Cryptsy, it'll make 0.000043 per day, which is why it doesn't make sense that they're at essentially the same price right now

again, not that I think either of them is worth buying, but it just shows the general stupidity out there

[hoop]

if i buy  100 GH from CEX, how and when get profit

[xstr8guy]

if i buy  100 GH from CEX, how and when get profit

Lol, you do know that 100GHs will earn you approximately $0.57 per day, right? You'd be very lucky to actually get half that after maintenance fees.

So why bother? You could probably find a 25 cents every day by looking down while going for a short walk. Plus you'll get fresh air and exercise. And it costs you nothing!

Anyways, here's the answer to your question...
∞

[Thenen]

if i buy  100 GH from CEX, how and when get profit

Actually, whatever hash that you purchase from cex will not earn you any profit. It will give you negative return.

[SuniX]

if i buy  100 GH from CEX, how and when get profit

Your profit opportunity is in the buying and selling of the asset itself. The mining rewards are a small token flow relative to the price you pay. Trade it, don't buy sit back and think profit will arrive.

[junglecat]

I use CEX.IO GH as a hedge against electricity on my own farm while the BTC is idle in my mining wallet. Then when I'm ready I dump it into more miners.