CEX.io GHS Bubble ?

[Bitcoin++]

I open CEX.io and find this rather confusing price:

GHS/BTC = 0.00747 which is the equivalent to THS/BTC = 7.47 = 4.487 USD

So you need to pay more than 7 BTC for one TH/s? It does not make sense at all. Here's why:

Currently one TH/s generates BTC 1.12 per month = 667 USD.

Don't forget maintenance. One TH/s costs 260 USD per month, reducing the profit to 407 USD, so it takes 11 months to break even. With difficulty increases it will surely never happen.

Am I right?
 

[1714808585]

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[1714808585]

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[1714808585]

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[newIndia]

I open CEX.io and find this rather confusing price:

GHS/BTC = 0.00747 which is the equivalent to THS/BTC = 7.47 = 4.487 USD

So you need to pay more than 7 BTC for one TH/s? It does not make sense at all. Here's why:

Currently one TH/s generates BTC 1.12 per month = 667 USD.

Don't forget maintenance. One TH/s costs 260 USD per month, reducing the profit to 407 USD, so it takes 11 months to break even. With difficulty increases it will surely never happen.

Am I right?
 

CEX.io is overpriced and its well kown fact for techies. But for people desperate to invest in mining this is the only option and hence they are gambling. For instance, I know one blonde, who is in r/GirlsGoneBitcoin and earning from private shows, investing whatever she's earning into CEX.io for a mirracle to happen that will eventually pay her mortgage.

[Godye Sclaro X9]

I open CEX.io and find this rather confusing price:

GHS/BTC = 0.00747 which is the equivalent to THS/BTC = 7.47 = 4.487 USD

So you need to pay more than 7 BTC for one TH/s? It does not make sense at all. Here's why:

Currently one TH/s generates BTC 1.12 per month = 667 USD.

Don't forget maintenance. One TH/s costs 260 USD per month, reducing the profit to 407 USD, so it takes 11 months to break even. With difficulty increases it will surely never happen.

Am I right?
 

If you buy a mining contract and hold it, then it probably won't be profitable because you will end up with less bitcoins than the amount you put in. If that is your goal, then I agree it would be better to simply hodl the bitcoins themselves and your calculations seem to support this conclusion.

What you are forgetting is that you can profit by trading the mining contracts themselves.

[Bitcoin++]

If you buy a mining contract and hold it, then it probably won't be profitable because you will end up with less bitcoins than the amount you put in. If that is your goal, then I agree it would be better to simply hodl the bitcoins themselves and your calculations seem to support this conclusion.

What you are forgetting is that you can profit by trading the mining contracts themselves.

This is the definition of a bubble 
Yes, you can trade and make a profit, but over all it is a negative sum game. Better play roulette and get 95 cents back for every dollar on average. You are more likely to win there too.

Even worse, by speculating in GHS you enable miners to use Ghash at no fee. I think they actually accept miners for free because some miners convert their revenues to GHS.

[GhostDK]

Don't forget that you can sell your GHS after you are done with mining And the price of GHS haven't moved much the last month

[Bitcoin++]

The game you are playing is not so different from this:

http://youtu.be/gkwosOW181Y - China soldiers pass 'live grenade' in training exercise

Normally I wouldn't care but the fact that you mess up Bitcoin saddens me.

I advise you to play at a casino instead.

[Mayuyu48]

forget cloud mining generally, and cex.io especially
we can't make profit from it
since bitcoin difficulty skyrocketing every 12 days, it will make our profit from cloud mining fewer every day
don't forget cex.io maintenance fee, it's too high
and their GHS price is overpriced!
stay away from it

[thresher]

Maybe a month or two ago I experimented with minmal amounts of btc on pb mining, havlock, and cex.io.

Cex.io was the first one I pulled out of when my btc balance started becoming negative from mining.......its not like cex.io wasn't taking their cut of the profits, just trying to bill me extra for mining on their shit scam site.

[SecureErase]

What great bitcoin wisdom advice here....'Better play roulette' 'I advise you to play at a casino'

OP, if you buy any cloud mining contract and sit back and do nothing you are unlikely to come away happy. If you have the time to educate yourself a bit about what you are getting into then perhaps you can profit or at least learn something. With CEX and GHS you are buying a trade-able asset with a very liquid market, which also happens to generate dividends in the shape of mining returns once you have bought them.
GHS pricing has been downwards for months pretty much inverse to difficulty increasing, however that relationship has disconnected for the past 6 weeks or so as GHS pricing (in its market has found a bottom area and remained above that and slightly trending upwards).

thresher says CEX was the first one of 3 he pulled out of due to high costs on 'their shit scam site' but what he didn't tell you is that his PB money is completely gone as it can never be 'pulled out' and with Havelock the liquidity is so low good luck getting that out at a price you'd like.

Again educate yourself a bit about what it is you are buying into and the reasons for doing it and make sure you have an exit strategy as well as an entry.

[Bitcoin++]

What great bitcoin wisdom advice here....'Better play roulette' 'I advise you to play at a casino'

OP, if you buy any cloud mining contract and sit back and do nothing you are unlikely to come away happy. If you have the time to educate yourself a bit about what you are getting into then perhaps you can profit or at least learn something. With CEX and GHS you are buying a trade-able asset with a very liquid market, which also happens to generate dividends in the shape of mining returns once you have bought them.
GHS pricing has been downwards for months pretty much inverse to difficulty increasing, however that relationship has disconnected for the past 6 weeks or so as GHS pricing (in its market has found a bottom area and remained above that and slightly trending upwards).

thresher says CEX was the first one of 3 he pulled out of due to high costs on 'their shit scam site' but what he didn't tell you is that his PB money is completely gone as it can never be 'pulled out' and with Havelock the liquidity is so low good luck getting that out at a price you'd like.

Again educate yourself a bit about what it is you are buying into and the reasons for doing it and make sure you have an exit strategy as well as an entry.

A casino has better odds than CEX' GHS. You are likely to lose in either case, but the Casino gives you better odds and you won't jeopardize this greatest monetary experiment.

[DrG]

CEX pricing has been like this since day 1.  It is well known that it is overpriced, at least for anybody who can do rudimentary math. Most people buying/selling on there end up trading in hopes of selling to somebody else for a higher price (greater fool concept).

If you're going to trade, you might as well trade on an exchange...

[Bitcoin++]

CEX pricing has been like this since day 1.  It is well known that it is overpriced, at least for anybody who can do rudimentary math. Most people buying/selling on there end up trading in hopes of selling to somebody else for a higher price (greater fool concept).

If you're going to trade, you might as well trade on an exchange...

At lest I can take comfort in that someday the bubble will burst and all GHS will go to zero. Due to the rather high maintenance fee it should happen quite soon.

When this happens it will no longer make sense to operate Ghash pool at a loss (I think they did because some of the mining revenues went to CEX/GHS - which must have been extremely profitable)

[DrG]

CEX pricing has been like this since day 1.  It is well known that it is overpriced, at least for anybody who can do rudimentary math. Most people buying/selling on there end up trading in hopes of selling to somebody else for a higher price (greater fool concept).

If you're going to trade, you might as well trade on an exchange...

At lest I can take comfort in that someday the bubble will burst and all GHS will go to zero. Due to the rather high maintenance fee it should happen quite soon.

When this happens it will no longer make sense to operate Ghash pool at a loss (I think they did because some of the mining revenues went to CEX/GHS - which must have been extremely profitable)

Well I believe that is their business model.  They were in effect selling the work that other miners did at a higher price than it was worth.  If you mined or are mining there, you are the power that they were/are selling.

How else could they afford to operate with 0% fee?

Well they will have their profits (which I'm not against) and somebody will be left with nearly worthless shares

[nuggetbram]

I was mining on the ghash.io site for a while do to its good statistics and data, then buying ghs with the BTC I earned to give more more mining power while i sat on them, rather than leaving them in a wallet. Didn't make me much, but it was stil worth it

[thresher]

What great bitcoin wisdom advice here....'Better play roulette' 'I advise you to play at a casino'

OP, if you buy any cloud mining contract and sit back and do nothing you are unlikely to come away happy. If you have the time to educate yourself a bit about what you are getting into then perhaps you can profit or at least learn something. With CEX and GHS you are buying a trade-able asset with a very liquid market, which also happens to generate dividends in the shape of mining returns once you have bought them.
GHS pricing has been downwards for months pretty much inverse to difficulty increasing, however that relationship has disconnected for the past 6 weeks or so as GHS pricing (in its market has found a bottom area and remained above that and slightly trending upwards).

thresher says CEX was the first one of 3 he pulled out of due to high costs on 'their shit scam site' but what he didn't tell you is that his PB money is completely gone as it can never be 'pulled out' and with Havelock the liquidity is so low good luck getting that out at a price you'd like.

Again educate yourself a bit about what it is you are buying into and the reasons for doing it and make sure you have an exit strategy as well as an entry.

I didn't say they were good, I said which one was the worst. Pb right now I believe I am 0.04 down at the moment (probably will pay off overall), I may have cashed out of havelock with profit, cex.io I ditched within the first two weeks, or less.  Spent roughly 0.1 btc at all of them (I go through gambling phases, and when I win, I blow the money on nonsense lol.) I haven't monitored them really because I honestly didn't give a shit.  All I know is pb and havelock seem legit, and cex.io is a scam.
I never saw pbmining or havelock produce a negative mining balance...... What I have seen is cex.io scamming people from day one, with a bunch of trolls that put referral links in their sigs to get money by scamming others into their bullshit. 
Why does one buy cex.io gh?  To dump on someone else for higher.  If that isn't the plan please let me know how your increasing your btc by mining there.

[ranochigo]

There is a reason why they sell their shares instead of mining for themselves, it is impossible to hit ROI , but people won't listen and end up losing BTC when the price went down for the past few months. Most cloud mining will not be likely to hit ROI. They charge you a fee for trading with their overpriced GHS and charge you a high fee to withdraw and the minimum requirement to withdraw is also quite high.

[Bitsaurus]

I was mining on the ghash.io site for a while do to its good statistics and data, then buying ghs with the BTC I earned to give more more mining power while i sat on them, rather than leaving them in a wallet. Didn't make me much, but it was stil worth it

I'm not sure why you say it was worth it when you would have earned more if you didn't reinvest into their business model.

[nuggetbram]

It took little effort - I earned them with my relatively low powered miner, they made a little extra for me, and in the end I sold them with about 2x ROI on my miner, so it turns out relatively well. Yes, I could have invested BTC in other places and made much more money, but this was a simple scheme requiring little to know effort

[ranochigo]

I was mining on the ghash.io site for a while do to its good statistics and data, then buying ghs with the BTC I earned to give more more mining power while i sat on them, rather than leaving them in a wallet. Didn't make me much, but it was stil worth it

They charge a very high maintenance fee, the price of GH is dropping quite fast, the withdrawal fee is 0.001. You should have lost a portion of your money.

[Zuminest]

not really a bubble, more like a downward spiral that the value of the GHash will never hit 0, but very close