Cryptsy now offering shares in mining contracts. MN1. Question

[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.

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.

I think they are over priced because newbs are overvaluing them way too much and getting ripped off - which is why I wanted to let people know in this thread

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[jwinterm]

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

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

[hellscabane]

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

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

It seems that the market is starting to "quiet down" in the sense that prices are lowering. But even at the current prices, a lot has to happen to make ROI on these contracts.

You never know though, Cryptsy could change the function of these shares to somehow make them actually "profitable."

[Don007]

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

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

It seems that the market is starting to "quiet down" in the sense that prices are lowering. But even at the current prices, a lot has to happen to make ROI on these contracts.

You never know though, Cryptsy could change the function of these shares to somehow make them actually "profitable."

The current prices are - in my opinion - not low enough to make ROI..  That's not just for Cryptsy, but also for Cex.io and less valid for PBmining.

Some think they might ROI in half an year, but I'll can make bigger profits in that time (by for example daytrading).

[croato]

I dont know about other services but i am happy with CEX.IO. I dont know if you can make ROI there just with mining but i see that service mostly as trading platform and mining just like nice bonus.

[vossen]

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

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

It seems that the market is starting to "quiet down" in the sense that prices are lowering. But even at the current prices, a lot has to happen to make ROI on these contracts.

You never know though, Cryptsy could change the function of these shares to somehow make them actually "profitable."

I can't believe how many people here think this. As long as the price of your shares don't drop in value, ANY return is profit. There are no sunk costs at all. You need a ROI that exceeds the cost of the hardware only when doing the mining yourself, because you won't be able to sell the miner for the same price you paid for it. Just watch the share prices, and sell if the price drops lower than your purchase price with accrued interest. It's like buying a bond: The vast majority of bonds that people buy offer MUCH lower interest rates.

[hellscabane]

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

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

It seems that the market is starting to "quiet down" in the sense that prices are lowering. But even at the current prices, a lot has to happen to make ROI on these contracts.

You never know though, Cryptsy could change the function of these shares to somehow make them actually "profitable."

I can't believe how many people here think this. As long as the price of your shares don't drop in value, ANY return is profit. There are no sunk costs at all. You need a ROI that exceeds the cost of the hardware only when doing the mining yourself, because you won't be able to sell the miner for the same price you paid for it. Just watch the share prices, and sell if the price drops lower than your purchase price with accrued interest. It's like buying a bond: The vast majority of bonds that people buy offer MUCH lower interest rates.

That is "if" you sell it for an equal or higher price of what you buy it for. But I don't see people being able to sell shares that they buy at .0275 for the same price in the future. The implicit assumption is that you buy a share with the intent of making a return after all transactions.

As for a bond, "profits" aren't "realized" until time of redemption. In this case, it's when you sell your share (or when the value of the fixed income passes the original purchase price). The difference is that there is no guarantee you will sell your share for the amount that you bought it for.

[vossen]

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

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

It seems that the market is starting to "quiet down" in the sense that prices are lowering. But even at the current prices, a lot has to happen to make ROI on these contracts.

You never know though, Cryptsy could change the function of these shares to somehow make them actually "profitable."

I can't believe how many people here think this. As long as the price of your shares don't drop in value, ANY return is profit. There are no sunk costs at all. You need a ROI that exceeds the cost of the hardware only when doing the mining yourself, because you won't be able to sell the miner for the same price you paid for it. Just watch the share prices, and sell if the price drops lower than your purchase price with accrued interest. It's like buying a bond: The vast majority of bonds that people buy offer MUCH lower interest rates.

That is "if" you sell it for an equal or higher price of what you buy it for. But I don't see people being able to sell shares that they buy at .0275 for the same price in the future. The implicit assumption is that you buy a share with the intent of making a return after all transactions.

As for a bond, "profits" aren't "realized" until time of redemption. In this case, it's when you sell your share (or when the value of the fixed income passes the original purchase price). The difference is that there is no guarantee you will sell your share for the amount that you bought it for.

If you think the price of the share will drop substantially, then it would make no sense to buy it. I think the price will stay above .0200 which was my purchase price, for the medium term. All you need to do is set your shares to sell if they fall beyond a certain price. It's incredibly easy. Every payment I get is pure profit.

[devinessa]

Seems pricey

[jparsley]

The price has almost doubled since it started.

[hellscabane]

The price has almost doubled since it started.

Not quite double, but for all of those that bought during the initial sale, they'll be making .55 BTC per share plus whatever their shares have brought in so far. Which isn't all that bad. (In full disclosure, I sold quite a bit of mine at .025, but I'm at the point now where the "dividends" plus shares I sold are now equal to what I initially put in. It's kinda like got those shares for "free" and every "dividend" that is get is just extra icing on the cake.)

I can't recommend buying shares at this moment though. It's hard to convince me that the amount that can be gotten is worth the risk.

[tins]

The price has almost doubled since it started.

Not quite double, but for all of those that bought during the initial sale, they'll be making .55 BTC per share plus whatever their shares have brought in so far. Which isn't all that bad. (In full disclosure, I sold quite a bit of mine at .025, but I'm at the point now where the "dividends" plus shares I sold are now equal to what I initially put in. It's kinda like got those shares for "free" and every "dividend" that is get is just extra icing on the cake.)

I can't recommend buying shares at this moment though. It's hard to convince me that the amount that can be gotten is worth the risk.

I'd agree with that. I bought in 20 of the initial shares and sold them all off after 3 days for a decent profit. I just don't see them making a positive ROI if holding onto them long term.

[Zooey]

If you're there for the market opening, every thing they make available goes way over value on cryptsy straight away;  an immediate parabolic and crash quite seperate to any other market forces.

[hellscabane]

The price has almost doubled since it started.

Not quite double, but for all of those that bought during the initial sale, they'll be making .55 BTC per share plus whatever their shares have brought in so far. Which isn't all that bad. (In full disclosure, I sold quite a bit of mine at .025, but I'm at the point now where the "dividends" plus shares I sold are now equal to what I initially put in. It's kinda like got those shares for "free" and every "dividend" that is get is just extra icing on the cake.)

I can't recommend buying shares at this moment though. It's hard to convince me that the amount that can be gotten is worth the risk.

I'd agree with that. I bought in 20 of the initial shares and sold them all off after 3 days for a decent profit. I just don't see them making a positive ROI if holding onto them long term.

Yep, pretty much what I did, got made a few BTC in "profit" from it.

If you're there for the market opening, every thing they make available goes way over value on cryptsy straight away;  an immediate parabolic and crash quite seperate to any other market forces.

Yeah, that pretty much is what happens with a lot of things so often. Oh well, quick profit I suppose.

[ellave]

So MN2 shares are now out, at 0.18, can we assume this caused the MN1 contracts to lose value?

[precrime3]

Personally I think there Overpriced and your best bet is the BDD MINE/SELL shares over at havelock investments. Or you could go with cloudmining, and I'd probably go with PB mining.

[cloudminingreport]

Cryptsy MN1 is featured on our bitcoin cloud mining review site at: http://cloudminingreport.com

Here is our full Cryptsy MN1 review

[hellscabane]

So MN2 shares are now out, at 0.18, can we assume this caused the MN1 contracts to lose value?

This had a significant amount to do with it. After all, to balance that value, the values of the MN1 contracts have to go down. Cogently, a new contract doesn't directly affect the price of the older contracts, but there is a severe psychological impact that causes the overall market to react. I do expect the price MN1 to bump up a bit (maybe to .195ish) when MN2 initial sales are completed (and their price bumps up also).

[DrBitcoin]

So MN2 shares are now out, at 0.18, can we assume this caused the MN1 contracts to lose value?

This had a significant amount to do with it. After all, to balance that value, the values of the MN1 contracts have to go down. Cogently, a new contract doesn't directly affect the price of the older contracts, but there is a severe psychological impact that causes the overall market to react. I do expect the price MN1 to bump up a bit (maybe to .195ish) when MN2 initial sales are completed (and their price bumps up also).

I bought one share of MN2.  I like the idea of these contracts.  It is almost akin to buying a stock and getting dividend payouts.  It isn't a lot, but it can add up over time, and if the price is stable it can offset any losses.

The only real problem is that when the hashing power goes up...the "dividend" payouts should exponentially decrease.  So a "lifetime" contract is pretty meaningless if you think about it.  

Then again...if I get 33 cents a share per day, that may not sound like a lot...but my AAPL shares only pay $3.21 per share PER QUARTER!  The risk is much higher in Bitcoin, as cryptsy could dissolve tomorrow and I'd be shit out of luck...but I think this "mining contract" concept is really great.  I can't way to see it more refined.

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