Why do people still buy GHs at CEX?

[skooter]

Even CEX's OWN WEBSITE tells you that you'll lose money by buying their product

https://cex.io/calc

Punch in the #s representing the current market stats

100 GH
16% maintenance fee
0% pool fee

Current difficulty: 5006
Difficulty increase: 50

Conversion rate: 460
Conversion rate increase/decrease: 0

So for 100 GH at their current prices, you'd pay 1.1 BTC
Their calculators show that you'll get a .62 BTC return before maintenance fees > return, at which point your GH are worthless.

Even the default values that are in the page when you go to it show a net loss if you buy their GH, so it's not like people are getting deceived by false marketing.

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[m3]

Just buy contracts for a shorter amount of time and for a better price from http://www.altcc.com

[ghur]

Because you can sell them again.

Like with everything, you can make a profit on it or make a loss on it.

[snarlpill]

^ What he said. Many people make Far more money trading GHs there than actually holding the GHs and receiving the dividends from mining. I personally do both, and have also made more from trading than holding. But their markets have very high volume it seems 24/7, your assets there are Very liquid at any given time (= being able to liquidate -sell- your assets and make the profit/cash out anytime needed). I personally enjoy being a member of that, the mining dividends I receive from just ~21 GHs right now is way more than I could make from faucets, and I fully enjoy the trading. Patience is key there. If you are looking for a cloud mining company that has more guaranteed returns and less chance, try bit-mining.co . 0% variance means you get your correct amount on the hour every hour. I hope this helped somebody, and if you want to sign up for CEX or bit-mining, feel free to PM me and grab my ref. link. 

[Bitcoin Magazine]

bitcoin will be free in a year anyway.  i'm buying all pennies for 1 satoshicoin

[killinitsoftly]

I don't get it either.
Might be mining share operators who prefer guaranteed income for their shareholders?  Just a thought...

[mysidia]

If the price of a GH is set by the market in Bitcoin terms....  then it bears to keep in mind: the markets are not always rational, and the market for CEX GH can remain irrational for substantially long periods of time.

Not all offers are good ones.
It appears buyers significantly overpay.   Ashame they don't offer a way to sell GHs short  ---  receive the cash for selling a GH,  in exchange  for paying the buyer the BTC  that a GH would have paid them...

[ManeBjorn]

I started out at CEX buy purchasing 10 gh/s.  I have since purchased another 20 gh/s.
By trading I have just this week made it to 100 gh/s.  Not bad for the cost of the initial 30 gh/s investment.  I don't know how to trade very well but I keep at it.

For actual investment I am using http://scrypt.cc?ref=baab5.  Scrypt.cc has a ROI of about 160 days or less, the community is nice and the cost of kh/s is very cheap right now.  I have just over 650 kh/s that make about .0064 BTC per day.  Not a bad deal.

Cloud mining is something that makes sense for some and not others.  I do have a small mining setup at home as well.

I guess it is what you make of it.

[romang]

bitcoin will be free in a year anyway.  i'm buying all pennies for 1 satoshicoin

Huh.

[Bit_Happy]

I need to remember to go to CEX next time I'm trading.

[ManeBjorn]

It took me being up odd times of the day to hit the highs and lows of when different countries would get up and go to bed.
It is fun.  Luckily I'm up odd hours anyways due to my injury.

I need to remember to go to CEX next time I'm trading.

[BitOnyx]

bitcoin will be free in a year anyway.  i'm buying all pennies for 1 satoshicoin

Huh.

I guess he meant it will be fully mined out.

[James222]

Because they're hoping to have a ROI. They would if they would keep their minig power for life. Instead they resell it so the wheel always keeps turning!

[ajw7989]

Most people are playing it like an exchange and the mining gh can just be viewed as interest

[snarlpill]

Because they're hoping to have a ROI. They would if they would keep their minig power for life. Instead they resell it so the wheel always keeps turning!

Actually....  They will get much closer to/surpass their ROI by trading higher than they bought, instead of just hanging onto them. As time passes by, the amount you get for your GHs will slowly decrease. This is because of a couple different reasons, difficulty raises being a main reason. So right now I own 24.2 GHs at CEX, right now this gets me ~5000 Satoshis every time they solve a block. A year from now though, I imagine I would be getting little to nothing back from those 24.2 GHs unless I increase that amount.

Most people are playing it like an exchange and the mining gh can just be viewed as interest

Exactly. And no trading fees = a Huge plus to trading there/mining there. Huge. And it doesn't hurt that GHash.io (their mining pool) has been killing it lately with getting the blocks. 38 blocks claimed by them just on 4/2/14. That number would be even higher if I went back a full 24 hours. https://blockchain.info/blocks
And like I said, approx. 5000 Satoshi reward for my 24 GHs, multiplied by 38 blocks, = 0.0019 BTC added to my account just for today, so far. Much more than I could hope to make on faucets, and like it's been said - the dividends are just a plus, like interest.

[Bit_Happy]

It took me being up odd times of the day to hit the highs and lows of when different countries would get up and go to bed.
It is fun.  Luckily I'm up odd hours anyways due to my injury.

I need to remember to go to CEX next time I'm trading.

Assuming good volatility, that does sound great.

[snarlpill]

^ Indeed. VERY high volume with their trading, Very volatile most times. If you have experience trading, and patience, you can definitely make a nice profit. Especially if you have a decent amount of BTC to start with.

[BitOnyx]

But do people still buying in CEX ?

[BigBoy89]

i think many ppl who still buy GHS in cex.io are bitcoin newbie
they see many cex.io promotion (using PTC or banner) and think buy GHS from cex.io will make profit
they still don't know how to calculate BTC earnings from cloud mining and don't understand rising difficulty will make GHS / BTC price drop to earth
if they figure out like that, they will cashout their GHS and withdrawal their BTC from cex.io
and go to antoher cloud mining who give "reasonable" price for GHS

[Billyboy402]

with all the new cloud miner > i dont understand why CEX.IO is still 0.0037