CEX.IO down to .042 /ghs.....how low will it go?

[miningair]

10 days ago it was around .073
7 days ago it was around .065

Gradually in the last week it has gone down to .042

I'm assuming this is a reaction to the difficulty changing. But how low do you guys think it will go?

[kuverty]

In what time frame? In a few years for example, if Bitcoin's price keeps rising we could see 0.0001 for example. It will keep going down almost surely for a long time. We will see 0.02  quite soon. Lots of new miners are going to hit the network in the early 2014, powerful ASICs.

[mikestro]

im sticking with the 0.02 but who know maby the price's will go up again after all it's people like me and you who wheeling to pay 0.07 or as now only 0.04

[moredillon]

It will degrade over time for sure, but the recent series of downspikes is from a multitude of things.

People were getting weary of cex.io/ghash.io having the market share on mining and harnessing 51% of that power can be a bad thing as they could potentially control the blockchain for a period of time. This is from the wiki:

An attacker that controls more than 50% of the network's computing power can, for the time that he is in control, exclude and modify the ordering of transactions. This allows him to:

Reverse transactions that he sends while he's in control
Prevent some or all transactions from gaining any confirmations
Prevent some or all other generators from getting any generations
The attacker can't:

Reverse other people's transactions
Prevent transactions from being sent at all (they'll show as 0/unconfirmed)
Change the number of coins generated per block
Create coins out of thin air
Send coins that never belonged to him
It's much more difficult to change historical blocks, and it becomes exponentially more difficult the further back you go. As above, changing historical blocks only allows you to exclude and change the ordering of transactions. It's impossible to change blocks created before the last checkpoint.

Since this attack doesn't permit all that much power over the network, it is expected that no one will attempt it. A profit-seeking person will always gain more by just following the rules, and even someone trying to destroy the system will probably find other attacks more attractive. However, if this attack is successfully executed, it will be difficult or impossible to "untangle" the mess created — any changes the attacker makes might become permanent.
https://en.bitcoin.it/wiki/Weaknesses#Attacker_has_a_lot_of_computing_power

Check out https://blockchain.info/pools for a pie chart. Also: https://en.bitcoin.it/wiki/Comparison_of_mining_pools for more info.

People moving away pushed the value/price down and that drove more people away, like a downward spiral. Still in the middle of that now.

In the end it is bringing the price down for hashing power, which is good for you.

Check the price against some other options:

https://cloudhashing.com/contracts
$1000 for a year at 20 GH/s

https://products.butterflylabs.com/homepage-new-products/1-gh-cloud-hosted-bitcoin-hashing-power.html
$10.83 per 1GH/s for a year

[mikestro]

$10.83 per 1GH/s for a year look like  good deal to me the only problem that i have read tpeople that order from bfl stuck with the pre order for months and even Still A Year Behind, Broken Promises so you pre order now and you never know when u recive your order atleast cex.io you pay and recive what you paid for  without any waiting

[odolvlobo]

I'm assuming this is a reaction to the difficulty changing. But how low do you guys think it will go?

As long as the difficulty continues to rise, the price will continue to fall. The lower bound is 0.

As I expect the difficulty increase to taper off after the next few months, my prediction for the price of cex.io in 6 months is about 0.0037 BTC.

[StopSmoking]

Can you buy GH/s on CEX.IO  and let it solomine the full time?

[nastybit]

Price will continue to fail as difficulty will rise almost all the time.
Next ASIC generation will literally send difficulty to the moon so time your sell accordingly
(ref: http://bitcoin.sipa.be)

[odolvlobo]

Can you buy GH/s on CEX.IO  and let it solomine the full time?

The purpose of buying GH/s on cex.io is to earn mining revenue. You can hold it and collect the income for as long as you want. Keep in mind that 1 GH/s will probably never earn more than 0.030 BTC total, so I wouldn't pay 0.042 BTC for it.

[melvster]

10 days ago it was around .073
7 days ago it was around .065

Gradually in the last week it has gone down to .042

I'm assuming this is a reaction to the difficulty changing. But how low do you guys think it will go?

Difficulty is not the only factor, supply and demand play a role.

For some people (probably the majority) it's the only way into mining/btc so they would pay a premium for convenience.

42 mbtc does seem slightly expensive for a GHS, and when it was at 73 mbtc that was clearly high ... but 10 mbtc would be cheap at this point.  Pick a number in the middle.

I suspect there will always be demand for a product like this, and cex is the first mover in this area

I think we could see sub 10 mbtc next year.