Question about cex.io cloud mining

[Ritual]

Hi all,

Firstly, sorry if this has been asked before and I missed it.

I was taking a look at Cloud Mining, specifically with cex.io and I see that the prices per GH atm are about €23.00. I was playing around to see if there was a possibility of making any money on the site, and I found their calculator:

https://cex.io/calc

I was considering having a punt for say €100, which would get me about 4 GHash, but when I plug this into the calculator, I see a return of about 0 and 3 CENTS per month.

Can this be right? Or am I totally reading it wrong. Because it seems....not worth it heh.

Rit.

PS: Or am I missing the point completely with cloud mining?

[Sonny]

Hi all,

Firstly, sorry if this has been asked before and I missed it.

I was taking a look at Cloud Mining, specifically with cex.io and I see that the prices per GH atm are about €23.00. I was playing around to see if there was a possibility of making any money on the site, and I found their calculator:

https://cex.io/calc

I was considering having a punt for say €100, which would get me about 4 GHash, but when I plug this into the calculator, I see a return of about 0 and 3 CENTS per month.

Can this be right? Or am I totally reading it wrong. Because it seems....not worth it heh.

Rit.

PS: Or am I missing the point completely with cloud mining?

You calculation is absolutely right.
Buying hashrate on cex.io is not profitable at all, not even close to get your investment back.


Why would people still go there?
1. People don't really understand how difficulty adjusts itself every 2016 blocks, and how this will affect the mining profitability.
If you understand the effect of rising difficulty, you will know the hashrate price will just keep on decreasing and decreasing.

2. People expect bitcoin price will go up, and thus they find it "profitable" to buy hashrate now (when bitcoin price is low), and get the mining revenue in the future (when bitcoin price is much higher).
However, if you mining profitability comes from the expected uprising bitcoin price, you should and could have better profit by just buying bitcoin directly now.

[qgmurugan007]

People mostly do trading there to make money and the price of GHS is highly volatile, the last time I checked.

[Ritual]

Thanks for info guys, I'm going to give that one a miss

Any thoughts on Scrypt mining contracts?

Rit

[MrsDoublehelix]

Hi Rit,

cex.io is only profitable by trading on this platform - or by mining at 0% pool fees with your own hardware &
which is osblete when you don't already have it in your hands. Best strategy for a future ROI I can recommend
is to buy BTC and simply hodl *smile* it ...

[Ritual]

Thanks Mrs.DNA

So I'll hold hodl hodor hang onto it for now then

Rit.

[cp1]

Thanks for info guys, I'm going to give that one a miss

Any thoughts on Scrypt mining contracts?

Rit

The thing about all mining contracts is they obviously have to sell it to you at a price that's more than it will return.  Otherwise why would they sell it to you?  If you hire me to go solo mine gold, I have to charge you more than the worth of that gold, or I would just keep it for myself.

[Sonny]

Thanks for info guys, I'm going to give that one a miss

Any thoughts on Scrypt mining contracts?

Rit

The thing about all mining contracts is they obviously have to sell it to you at a price that's more than it will return.  Otherwise why would they sell it to you?  If you hire me to go solo mine gold, I have to charge you more than the worth of that gold, or I would just keep it for myself.

Exactly.
By the same token, ASIC manufactures must do enough "testing" before shipping out the pre-ordered units. 

[Ritual]

Ah yeah, I figured that - don't release em until you've mined the hell out of em to get your money back. Can't blame them I guess.

Guess what I am really asking in this thread is "How do I get started, this late in the game, and can I have a piece of that juicy juicy pie please, thank you so very much indeed?"

Rit./

[cp1]

Just go buy btc from localbitcoins, coinbase, etc.  Then you're done!  Not as fun or adventurous as mining, but better in the long run.  You could spend $100 on a USB miner just to get the experience if you like.

[Ritual]

I doubt 100 quid sunk into a 5Ghash BiFury is going to make much Speacially not when the TH miners come online in droves and the diff goes stratospheric (as opposed to the moment where it is simply uncomfortably, bowel-wateringly high).

Yeah, I think I'll sit for a while. Might just plug 100 bucks into something like Cryptsy and play with the altcoins for a bit.

Thanks all

Rit.

[techgeek]

Just go buy btc from localbitcoins, coinbase, etc.  Then you're done!  Not as fun or adventurous as mining, but better in the long run.  You could spend $100 on a USB miner just to get the experience if you like.

This is spot on. It naturally hedges, so why do anything else.

If you want to mine and profit, it would have to be some serious bitcoin hardware and right now its minimum 500ghz - 2THS.

[MrsDoublehelix]

http://i3.kym-cdn.com/photos/images/original/000/688/147/54f.png

[boumalo]

I doubt 100 quid sunk into a 5Ghash BiFury is going to make much Speacially not when the TH miners come online in droves and the diff goes stratospheric (as opposed to the moment where it is simply uncomfortably, bowel-wateringly high).

Yeah, I think I'll sit for a while. Might just plug 100 bucks into something like Cryptsy and play with the altcoins for a bit.

Thanks all

Rit.

Last time I checked Bitfury is at 125$ the unit, 10 for 1000$; I guess you can make money buying 10 of them, mine for a month then sell it back on Ebay for 100$ a piece or even a bit more; I just sold my antminer 1.6Ghs at 122$ and I told the buyer exactly how much he could expect per day

[cp1]

Buying a USB miner for $100 isn't really about the profit, it's about getting the same experience of buying a $10,000 miner.  You get to launch cgminer and see your hash rate and everything, just instead of losing $4000 you only lose $40.

[techgeek]

Buying a USB miner for $100 isn't really about the profit, it's about getting the same experience of buying a $10,000 miner.  You get to launch cgminer and see your hash rate and everything, just instead of losing $4000 you only lose $40.

Which is smart, its what I did when I bought bfl 5ghz, before I bought the 60ghz etc.

[Ritual]

Buying a USB miner for $100 isn't really about the profit, it's about getting the same experience of buying a $10,000 miner.  You get to launch cgminer and see your hash rate and everything, just instead of losing $4000 you only lose $40.

Which is smart, its what I did when I bought bfl 5ghz, before I bought the 60ghz etc.

That's actually a fairly interesting take. I didn't consider that.

Food for thought!

Rit.