turtlehurricane (OP)
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May 15, 2014, 02:10:37 AM Last edit: September 27, 2015, 12:13:22 PM by turtlehurricane |
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q119108
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May 15, 2014, 04:15:30 PM |
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Bitcoin cloud mining services provide hashing power in exchange for Bitcoin. Cex.io is perhaps the biggest and most popular Bitcoin cloud mining service. You can buy 1 GH/s of mining power for 0.0071 Bitcoin
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zolace
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May 15, 2014, 04:50:28 PM |
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Seems is like just one big scam to me, I kinda figured unless you buy more then 3 TH you really wont make profit the ones that are in the game are the ones who been mining and with half there profits they keep investiing into more hashing power, thats the only strategy is that I see thats how senior miners been doing it for a while have done it.
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odolvlobo
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May 15, 2014, 05:20:00 PM |
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Bitcoin cloud mining services provide hashing power in exchange for Bitcoin. Cex.io is perhaps the biggest and most popular Bitcoin cloud mining service. You can buy 1 GH/s of mining power for 0.0071 Bitcoin
Unfortunately, cex.io charges 0.007 BTC per year per GH/s as a maintenance fee. That is about what 1 GH/s will mine in a year! Profit/loss per 1 GH/s over the next year: Mining revenue | +0.007 | Cost | -0.0071 | Maintenance fee | -0.007 | Profit/loss | -0.0071 |
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Ron~Popeil
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May 15, 2014, 05:56:10 PM |
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I used to buy GH there with my mining payouts while waiting for enough to accumulate for an auto payout. It isn't worth it to do that now with the fees. The pool performance there has been rough this week too. 2-3 disconnects a day all week.
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Cryptological
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May 16, 2014, 02:31:44 AM |
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Seems is like just one big scam to me, I kinda figured unless you buy more then 3 TH you really wont make profit the ones that are in the game are the ones who been mining and with half there profits they keep investiing into more hashing power, thats the only strategy is that I see thats how senior miners been doing it for a while have done it. The article headline is very negative biased. In the article itself it discusses the ability to trade the GHS and that is an advantage CEX has over other cloud miners. Just sitting on cloud hashing won't yield a decent enough profit regardless of wjo the provider is, same as just sitting on cash in the bank won't. I've only just tried it out myself, but can see how the mining and trading combnination works very well. .https://bitcointalk.org/index.php?topic=317001.msg6726473#msg6726473
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Shogen
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May 16, 2014, 03:55:35 AM |
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Bitcoin cloud mining services provide hashing power in exchange for Bitcoin. Cex.io is perhaps the biggest and most popular Bitcoin cloud mining service. You can buy 1 GH/s of mining power for 0.0071 Bitcoin
Unfortunately, cex.io charges 0.007 BTC per year per GH/s as a maintenance fee. That is about what 1 GH/s will mine in a year! Profit/loss per 1 GH/s over the next year: Mining revenue | +0.007 | Cost | -0.0071 | Maintenance fee | -0.007 | Profit/loss | -0.0071 |
This. In the past, cex shows the maintenance fee both in USD and as a % of mining revenue. But now, the % is becoming so high that cex decided to hide it from customers lol.
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murraypaul
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May 16, 2014, 01:02:55 PM |
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The article headline is very negative biased. In the article itself it discusses the ability to trade the GHS and that is an advantage CEX has over other cloud miners. Just sitting on cloud hashing won't yield a decent enough profit regardless of wjo the provider is, same as just sitting on cash in the bank won't. I've only just tried it out myself, but can see how the mining and trading combnination works very well. .https://bitcointalk.org/index.php?topic=317001.msg6726473#msg6726473 You are just relying on the greater fool theory. If CEX GHs aren't profitable, then eventually you will run out of fools to trade yours to.
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BTC: 16TgAGdiTSsTWSsBDphebNJCFr1NT78xFW SRC: scefi1XMhq91n3oF5FrE3HqddVvvCZP9KB
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komar
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May 16, 2014, 01:24:00 PM |
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You are just relying on the greater fool theory. If CEX GHs aren't profitable, then eventually you will run out of fools to trade yours to.
And this is important: nobody realize that CEX GHs will not be in profit ever. Everybody thinks that cex.io is an "investment for the future", or "they're like stocks", or "it will give me bitcoins ever". The count of BTC given by any mining hardware is finite, and one CEX GH costs more than it could mine ever.
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ejinte
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May 17, 2014, 09:43:43 AM |
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"not a profitable investment"
That depends on WHEN you trade and to WHO for WHAT price.
Some people defensively made a profit there, buying the Ghz cheap and selling them expensive and in the mean time making profit from the BTC they mine. Right now it might not me a good time to buy Ghz there, but if one were holding Ghz it might be a good to sell them to some fool who pays overprice for it.
In the end someone will make a profit and someone will make a lose. Not to strange.
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hensi
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TheSlimShady
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May 19, 2014, 02:04:58 PM |
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Well certainly its not profitable in long term, as the difficulty increases the production decreases and the price of ghashes also go down, i lost 30percent of my investment over there. CEXIO is only beneficial for its owners.
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redwhitenblue
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June 02, 2014, 04:54:48 AM |
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The profitability of GH/s purchased on cex.io is based on how much you pay for it.
If you pay a low enough price for GH/s on cex then over the long run you will earn more BTC then what you paid for them. If you pay too high of a price then you will incur a loss.
The problem is that the price has consistently been above what the GH/s are worth, and the price has not adjusted appropriately to the increases of difficulty.
It is also possible to sell GH/s at a price that is above the "market" price on venues such as ebay and craigslist.
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Ron~Popeil
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June 02, 2014, 06:04:44 AM |
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The profitability of GH/s purchased on cex.io is based on how much you pay for it.
If you pay a low enough price for GH/s on cex then over the long run you will earn more BTC then what you paid for them. If you pay too high of a price then you will incur a loss.
The problem is that the price has consistently been above what the GH/s are worth, and the price has not adjusted appropriately to the increases of difficulty.
It is also possible to sell GH/s at a price that is above the "market" price on venues such as ebay and craigslist.
Yeah the price is really out of whack with most cloud mining services. This one is a bit more than most.
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odolvlobo
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June 02, 2014, 07:53:39 PM |
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Unless someone can explain away this chart, It seems to me that I would rather have my BTC "stored" at CEX.io much like a savings account (you know, back when savings accounts paid interest to our grandparents). Ever since mid april the cost of a GHS at cex has slowly been going up. Slowly, mind you. But if you zoom all the way out, its a massive reversal over the steep downtrend. https://bitcoinwisdom.com/markets/cexio/ghsbtcThere are three things you don't understand. 1. You don't "store" bitcoins at cex.io. You are paying for a service that mines bitcoins for you. There is no guarantee (in fact, it is very unlikely) that you will get back as many bitcoins as you put in, even after you sell your shares. 2. The value of a share decreases as the difficulty goes up. The question is whether or not the revenue from a share will make up the drop in value. That is hard to predict, but the answer is most likely "no" at the current price unless conditions change drastically over the next few months. 3. People that don't understand #1 and #2 lift the price occasionally, but ultimately they lose their money to the people that do understand #1 and #2. Also, bitcoinwisdom (and cex.io) only show prices for the last 30 days. Take a look at the complete range to get the real story: https://cryptfolio.com/historical?days=year&id=cexio_btcghs_daily
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DeboraMeeks
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June 02, 2014, 08:07:39 PM |
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They could just be functioning as a ponzi. Because you CANNOT get ROI they use funds that bought 'GHS' to pay out other investors and so on...
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DolanDuck
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June 02, 2014, 08:45:24 PM |
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In this specific moment of bitcoin history, while the value is under the trendline, I think that holding is the best option. This way you don't have any cares about scams, trading losses, mining worries.
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Ron~Popeil
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June 03, 2014, 07:35:18 AM |
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In this specific moment of bitcoin history, while the value is under the trendline, I think that holding is the best option. This way you don't have any cares about scams, trading losses, mining worries.
Yep. Too many horror stories about cloud mining scams are out there. CEX doesn't seem scammish but I am not comfortable with leaving any bit coin anywhere but in my wallet and especially not there in the form of ghash that can plummet at any time.
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ejinte
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June 03, 2014, 12:05:47 PM |
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In this specific moment of bitcoin history, while the value is under the trendline, I think that holding is the best option. This way you don't have any cares about scams, trading losses, mining worries.
Yep. Too many horror stories about cloud mining scams are out there. CEX doesn't seem scammish but I am not comfortable with leaving any bit coin anywhere but in my wallet and especially not there in the form of ghash that can plummet at any time. It's not a scam it's been around for a long time. However if it's a good deal or not, that's another question.
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odolvlobo
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June 03, 2014, 06:16:06 PM Last edit: June 03, 2014, 06:45:34 PM by odolvlobo |
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So, my follow up question is this: what's the indicator i am missing which puts GHS as bearish when even your long term graph seems to have bottomed out?
You are not missing an indicator. You simply are not looking at the numbers that you have. You have not attempted to answer the most important question: If you invest now, how much will you make? Look back a few posts, you may find an answer. You also haven't validated your assumptions. Let me help you. If you bought 1 GH/s on January 2, 2014: Buy on 1/2/2014 | -0.0417 | Revenue | 0.0258 | Sell on 6/3/2014 | 0.0072 | ------------------------ | ----------- | Profit | -0.0087 (-20.1%) |
Also, the graph has not "bottomed out". That is a horrible misinterpretation. The price will continue to drop as the difficulty rises. It only looks like it has bottomed out because it has dropped so much.
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