CEX.io GHS Bubble ?

[bbeesley]

 you must have invested very recently and got lucky because it has been mostly going down for months

yes, and yes

[hexagram]

I don't see Cex.io as a profit center in it's own right but rather I use it as a place to store some of my BTC

if I have my BTC sitting in a wallet, it earns nothing

if I use some of my BTC to buy GHS then it makes at least some BTC

when and if I need the BTC, I just sell the GHS and withdraw the BTC back to my wallet

I don't have all of my assets in this primarily because I don't want to trust any entity too much lest I get Gox'd

so far, it has worked out positively for me...your mileage may vary.

Oh God no, don't do that.  Look at the graph for the price over the last 6 months.  It will just keep going down faster than anything you might be mining.  You're basically giving money away to the flippers.  If you're going to get into CEX you HAVE to flip to make a profit.  Otherwise just put your money in cold storage.

By storing BTC in cex.io and use them for mining, we get these 2 values:
X = initial ghs buy value
Y = final ghs sell value + mining profit - maintenance fees - risk of cex.io/ghash.io hack or shutdown

if you think Y will be greater than X, go invest on cex. If not, keep them on offline wallet.
The only certain thing is that noone can say which it will be.

I was just thinking what bbeesley was thinking overnight and I'm glad I found this thread. My logic was that my BTC isn't doing anything in my wallet, so perhaps throwing them into CEX.io would at least get them to work in order to get more BTC. I thought it would make more interest than putting fiat money in the bank. Of course being a n00b I didn't account for the price of GHs dropping over the past 6 months because just like a lot of people see the price has been rather stable in the last month or so.

Thanks guys and Godspeed..

[nuggetbram]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

[hexagram]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

Hi thanks for sharing, do you remember exactly how long these few months were?

[Mayuyu48]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

wow, rare example for someone make profit only from mining
how long you mining there? and how much GHS prices when you bought and sold?

[ranochigo]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

Serveral months ago, it was certainly quite profitable, nowadays, with the maintenance fees and high difficulty, it isn't so profitable any longer. I don't think there was maintainence fees when you bought it.

[bbeesley]

I don't think there was maintainence fees when you bought it.

there have been maintenance fees for at least the last year.  they only account for the cost associated with electricity and maintenance, something we pay on our end when we mine at home

while the cost of mining eats into profit, in the case of Cex it doesn't completely eliminate profit.

if Cex GHS's weren't fungible - they can be traded back to BTC and or purchased in micro amounts - then you would be depending solo on getting back your BTC investment but since you can trade back out at any point, you have a much lower risk and at least for me, it has been better than just leaving the BTC in a wallet doing nothing

[nuggetbram]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

wow, rare example for someone make profit only from mining
how long you mining there? and how much GHS prices when you bought and sold?

The prices did change a bit, from about 0.0068 to 0.0071 over the course of three-four months. It's profitable so long as you sell your ghs after a while and the price remains constant (even better if it goes up, obviously)

As bbeesly said, it's not the best investment, but it's certainly better than leaving them in your wallet. Gives you an interest of sorts

[picolo]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

wow, rare example for someone make profit only from mining
how long you mining there? and how much GHS prices when you bought and sold?

The prices did change a bit, from about 0.0068 to 0.0071 over the course of three-four months. It's profitable so long as you sell your ghs after a while and the price remains constant (even better if it goes up, obviously)

As bbeesly said, it's not the best investment, but it's certainly better than leaving them in your wallet. Gives you an interest of sorts

If you are likely to lose money because the price is likely to go down more than what you will get in interests it is not a good investment and your bitcoins are better of in your wallet!
Playing casino can give you a return in the short run but you are mathematically a loser when you play

[DrG]

Hell, I threw 0.15 into CEX out of curiosity, left it in there for a few months, sold it and ended up with 0.23. As a purely mining investment, CEX is awful, but due to the pretty consistent prices, buying, mining for a while and making more than the withdrawl fee will almost certainly net you a profit.

wow, rare example for someone make profit only from mining
how long you mining there? and how much GHS prices when you bought and sold?

The prices did change a bit, from about 0.0068 to 0.0071 over the course of three-four months. It's profitable so long as you sell your ghs after a while and the price remains constant (even better if it goes up, obviously)

As bbeesly said, it's not the best investment, but it's certainly better than leaving them in your wallet. Gives you an interest of sorts

If you are likely to lose money because the price is likely to go down more than what you will get in interests it is not a good investment and your bitcoins are better of in your wallet!
Playing casino can give you a return in the short run but you are mathematically a loser when you play

You can't rationalize with people who don't want to look at the underlying fundamentals.  If you tell somebody that standing on a moving car is dangerous and they do it and they don't die - they'll say it's not dangerous.  Just move along.  The trend-line and the math has been posted to death in many threads.

[bbeesley]

You can't rationalize with people who don't want to look at the underlying fundamentals. 

Oh the irony of suggesting to avoid risk in a bitcoin forum

[philipma1957]

You can't rationalize with people who don't want to look at the underlying fundamentals.  

Oh the irony of suggesting to avoid risk in a bitcoin forum

cex.io can drop from .0074 to .0040  over night  better yet it could  drop that as I type , but it has not done it  so if you purchased  the last month you made money.


 so the real question is do you feel lucky?


fundamentals   suggest a price from .003 to .004

[picolo]

You can't rationalize with people who don't want to look at the underlying fundamentals.  

Oh the irony of suggesting to avoid risk in a bitcoin forum

People see that the price is stable for days or weeks so they think it will stay stable and they can sell at a profit after a few days or weeks when the price is likely to go down at any moment and they are likely to lose when they invest
We hear the same thing with gambling : "i lost because i got greedy and didn't stop in time; if i could stop after winning a little bit i would be so rich"

[bbeesley]

We hear the same thing with gambling : "i lost because i got greedy and didn't stop in time; if i could stop after winning a little bit i would be so rich"

says the guy with the link to a gambling site in his sig? ;-)

I'm not saying that cex.io isn't risky...I am suggesting it is no less risky than buying a miner and hoping to outrun declining BTC value, difficulty increases and power costs to get a positive return

I do both and I tried cex.io with a few hundred GHS to see how it played out and so far, I am cash flow positive (most likely because I bought when it was even lower than it is now) and I still have a fungible asset that I can convert back to BTC at any time I decide.

[bomberb17]

Well the bubble is exploding! GHS price down to 0.006 and dropping fast!

[philipma1957]

Well the bubble is exploding! GHS price down to 0.006 and dropping fast!

pop  pop pop


  I purchased a bit today at .0060  put it back for sale at .0065

I put in a second order at .0055




And in under ten minutes it bounced to .0065 and i made some btc

[Mayuyu48]

Well the bubble is exploding! GHS price down to 0.006 and dropping fast!

pop  pop pop


  I purchased a bit today at .0060  put it back for sale at .0065

I put in a second order at .0055




And in under ten minutes it bounced to .0065 and i made some btc

maybe someone playing with it?
internal person maybe
i'll try your method, maybe i can make some profit there

[philipma1957]

Well the bubble is exploding! GHS price down to 0.006 and dropping fast!

pop  pop pop


  I purchased a bit today at .0060  put it back for sale at .0065

I put in a second order at .0055




And in under ten minutes it bounced to .0065 and i made some btc

maybe someone playing with it?
internal person maybe
i'll try your method, maybe i can make some profit there

  it is a guessing game at best.
 I check the site every 4 hours..Then  if I stumble on it with a big drop like today I buy some and list it back about 7 % higher.

I turned 50 ghs at .0060 into 50 at.0065 in under 10 minutes , but that is truly due to looking at it in the middle of a good drop.  if I had checked 10 minutes later it would have been at .0065 not .0060.

[bomberb17]

Looks now it is stabilized again around 0.0067

[bomberb17]

Still it does not make sense. GHS/BTC price should theoretically follow the difficulty increase. So for 25% diff increase the price should have decreased by 25%, i.e. from 0.0075 to somewhere around 0.0052.. Even though it dropped to 0.006 for a minute, it is now around 0.0067 which is less that 10% drop.
This means the market is extremely optimistic about the ROI of their investment..