Cryptsy now offering shares in mining contracts. MN1. Question

[DrBitcoin]

Every time I've tried to invest or day trade altcoins, I've lost BTC. At this point, I've lost about 0.25BTC so I decided just to buy and hold.

Today I noticed that Cryptsy is now offering shares in a mining contract that offers daily payouts. Each share costs about 0.0185BTC and the payout varies but today's was .00014941BTC per share. Not a staggering amount of return on investment but it could add up?

Date                   Total Distribution   Per Share
2014-04-11   1.49409437BTC.      0.00014941 BTC

I'm intrigued by this concept. Buying shares of a mining contract  I trust Cryptsy about as much as I trust any Bitcoin exchange (maybe a tiny little bit more). But I just don't see how I'm going to make much BTC doing this. I guess it is possible I could buy a share for .0185, and the value could go up and I could sell the share. But it could also go down and that erases any minuscule amount of Bitcoins that are generated daily through mining.

Anyone else interested in this? Anyone else thinking about investing in it?

[RockHound]

My best friend got into similar shares offered by Cryptorush.in. I know there's been some negative press about this particular altcoin exchange. However the concept is still interesting.

I'm curious, can you trade these said shares within Cryptsy just like CEX.io for mining contracts?  

[DrBitcoin]

My best friend got into similar shares offered by Cryptorush.in. I know there's been some negative press about this particular altcoin exchange. However the concept is still interesting.

I'm curious, can you trade these said shares within Cryptsy just like CEX.io for mining contracts?  

Yes. You can trade the shares just like any other altcoin.

To me it is analogous to a stock that pays dividends.

[RockHound]

My best friend got into similar shares offered by Cryptorush.in. I know there's been some negative press about this particular altcoin exchange. However the concept is still interesting.

I'm curious, can you trade these said shares within Cryptsy just like CEX.io for mining contracts?  

Yes. You can trade the shares just like any other altcoin.

To me it is analogous to a stock that pays dividends.

Nice one brother - I exclusively deal in Ƀ these days but will look into. I wonder if the share holders get real-time updates on mining (name of altcoin, mining hash rate, total blocks awarded, etc)

[Bit_Happy]

I've been using Cryptsy and didn't notice.
Thank you for the news.
I'll buy some.   

[hellscabane]

It's an interesting approach of taking a dividend route, but just as a note, each share is kinda like getting a 1Gh/s miner. And since the network doesn't show much signs (if any) of slowing down it may be hard to make ROI on the initial investment.

That said, you never know whether these mining contract shares will be put into something else in the future.

[jparsley]

Intresting development, looks like a lifetime contract. Ill buy some but i dont expect to make much profit unless btc diff drops

[datz]

With Simple Exchange you can start and run your own funds.

[liondani]

Cryptsy stated clearly at the beginning that after the 10.000 shares sell, the market would open so everybody could trade the shares he owned.(I have a statement from the customer support too)***
Now they increase the MN1 contract to 20.000 shares (that means +10000 shares) !!!! If I would know they made something diferrent from the first statement I wouldn't buy.

BigVern new announcment on twitter:
"Due to demand, we will be increasing the MN1 contract to 20Th - will also offer 10k more shares.Double capacity means no dilution of shares"

THEY THINK WE ARE STUPID OR WHAT?

ok the dividents will be the same BUT the shares market price will decline its simple as that...
for example if the market real demand is for 30.000 shares then the +20.000 shares demand must be purchased from the open market since only 10.000 was available (so the price would increase) NOW they give 10000 more so the remaining demand is minus 10000 shares and if they continue to CHEAT investors like that they can give more and more and more until demand is very very low so the price will drop immediately after the market will open(or for the optimistics it will increase but not as it could before the added suply). THANK YOU CRYPTSY for SCAMMING US... Personaly I bought shares to sell them not to keep them... So if I new that the first statement was a BIG LIE I wouldn't buy !!!




***(I will provide screenshots for all the conversation ASAP because its interresting)


04.11.2014
Hello xxxxxxxx,
You will be receiving continuous payouts of what is mined.  
I am unable to reverse your purchase, but you are welcome to sell your shares once the other half of the set 10000 shares have all
been taken.  We have sold 1/2 of them already in first 12 hours, so its actually looking pretty good for all involved.


Sincerely,
Jim
Customer Service Manager
Cryptsy.com



PS Not to mention the price of 0.0185 BTC per share 1GH/s compared to https://cex.io/#GHS-BTC of 0.0106 BTC

[wasamata]

Absolute rubbish and a gimmick.
Invest in GHS at your peril!!
I like cryptsy
but this is a low point.
If you have any questions,
take a look at the long term CEX.IO chart.

[hellscabane]

I do have to agree that it wasn't the "fairest" move to allow another 10,000 shares to be sold. You gotta remember though, these shares somewhat function as a type of "Bond." The only difference is there is no guarantee of return and it is highly risky.

Once again, if these shares are pegged to 1 Gh/s for their lifetime, then it'll be hard to make ROI at the current rate that the difficulty is increasing.

That said, you never know what the long-term plans for these shares are.

[tins]

Intresting development, looks like a lifetime contract. Ill buy some but i dont expect to make much profit unless btc diff drops

I bought a few, as well. The lifetime contract did it.
Nice first 2 payouts...I think. Well, I guess I don't really know...I've never mined btc, so don't know what is nice or not. But, I think it was good for what I paid thus far.

[mmihai1978]

i have bought at 0.0185 and sold at 0.02, for a small profit. Quite happy with these contracts , but i would not hold them long time. I can't see the upside.

[hellscabane]

So apparently these shares are selling for over 0.0275 BTC each (nearly 50% up from what you could buy them for originally). Fortunately, I had a bunch that I had a sell order at around 0.025 (and I didn't think that they would actually sell). Anyone have any thoughts on why these contracts are being sold for so much over what they were sold for?

I don't particularly care to get the ones I sold back (I still have a few left over that I'm keeping, and with the price differential that I sold mine for, it's like I got those for free). I'm more curious than anything.

[Bit_Happy]

....Anyone have any thoughts on why these contracts are being sold for so much over what they were sold for?

People see an initial up move and jump in like lemmings.
More accurate pricing will be seen in a week or two.

[hellscabane]

....Anyone have any thoughts on why these contracts are being sold for so much over what they were sold for?

People see an initial up move and jump in like lemmings.
More accurate pricing will be seen in a week or two.

Fair enough, it's what I figured too. It is surprising though. Even at the beginning, each share of .0185 BTC pegged to 1Gh/s was only slated to make a BTC ROI if difficulty increases hovered at 2.5%-3% for the next 12 months.

Once it hit around .021 BTC each, difficulty actually needed to start decreasing around 1% per retarget for the next 12 months in order to make ROI.

At 0.025 BTC, I have no clue what the thought process is behind buying. This is why it's very curious.

[hellscabane]

Does anyone have a comprehensive excel file for future profit using cryptsy mining contracts? If not I could start one. I'd like to have a nice graph with some input boxes, and even a few separate sheets for various negative and positive scenarios.

BTW, I've seen these types of calculators, but I prefer excel: http://www.bitcoinx.com/profit/

There's probably someone here that has a more comprehensive Excel File (in fact, I know there is, I just don't remember where it's reposited in). But in the interim, you could use something like https://bitcoinwisdom.com/bitcoin/calculator.

[psybits]

Unfortunately the Bitcoin mining GH/s at Cryptsy are way overpriced - which means less chance of making anything back on your investment.

You can buy 1 GH/s of mining power for a third of the price at PB Mining.

And you can also buy 1 GH/s of mining power (which can be traded on an exchange) at CEX for about half of the price.

Disclosure: these are affiliate links above - but honestly the GH/s on Cryptsy are so overpriced.

[Bit_Happy]

Unfortunately the Bitcoin mining GH/s at Cryptsy are way overpriced - which means less chance of making anything back on your investment.

You can buy 1 GH/s of mining power for a third of the price at PB Mining.

And you can also buy 1 GH/s of mining power (which can be traded on an exchange) at CEX for about half of the price.

Disclosure: these are affiliate links above - but honestly the GH/s on Cryptsy are so overpriced.

Why would the market be so inflated? Thanks for the alert, I'm not up to speed on mining contract prices.
Eventually either Cryptsy's will go way down or PB Mining will have a huge rally.

[psybits]

Unfortunately the Bitcoin mining GH/s at Cryptsy are way overpriced - which means less chance of making anything back on your investment.

You can buy 1 GH/s of mining power for a third of the price at PB Mining.

And you can also buy 1 GH/s of mining power (which can be traded on an exchange) at CEX for about half of the price.

Disclosure: these are affiliate links above - but honestly the GH/s on Cryptsy are so overpriced.

Right, but I thought cryptsy didn't have fees or extra charges? You simply buy for life, and get your returns, right?

PB Mining has no fees either - and after 5 years (when the contract runs out) the GH/s will be virtually worthless anyway. There is no way to sell the GH/s later on though - they are 5 year mining contracts.

CEX does have some small fees - but nowhere near enough to make it worth spending twice as much at Cryptsy.

CEX is the best option if you're looking to mine and trade - the trading platform there is very professional and the GH/s are much closer to the market rate than at Cryptsy.

To seriously try and get a return on investment PB Mining is the best option (assuming the service lasts). You can buy 100 GH/s there for 0.58 BTC- I don't want to know how much it would cost for 100 GH/s on Cryptsy.



This is the best mining calculator (which shows upcoming diff changes): https://www.alloscomp.com/bitcoin/calculator