CEX.io Halts Cloud Mining Service Due to Low Bitcoin Price

[tokeweed]

Bitcoin mining service CEX.io has announced it will suspend its cloud mining activities.

The company stated in a 12th January blog post that it is no longer profitable, blaming declining revenues amid a dropping bitcoin price. CEX chief information officer Jeffrey Smith told CoinDesk that operations would resume if the price of bitcoin climbs above $320, calling the move “temporary”.

The suspension comes after CEX customers experienced disruptions to their cloud mining service, which the company at the time attributed to third-party complications. Smith said that the two issues are unrelated; that the economic impact of a drop in bitcoin prices cut into its ability to offer its clients profitable mining services.

Indications from CEX’s forums suggest that customers were informed over the weekend about both the risk of unprofitability as well as stipulations in the customer terms of service related to potential stoppages. On Friday, a CEX spokesperson cited the former when asked about reported customer compensation issues.

more here...  http://www.coindesk.com/cex-io-halts-cloud-mining-service-due-low-bitcoin-price/

[Kakmakr]

So what happens with the people owning Gh's now?

You loose your investment? ^frown^ or are they going to buy up all the remaining GH's at a reduced price? ^Grin^

[tokeweed]

you could take that risk, yes. 

[n3rvi0zz0]

mining its a risk from the beginning, now with the coins at 270 usd we lost money.

I want to see what is the next step from all the companys squeeze the asics to break the sustability


Cex first one, Knc miner Second and Bitmain 3rd

[BitmoreCoin]

It depends on the price of electricity. CEX.io's electricity is too high and machines are too old, hence lower efficiency. Bitmain might not have that problem. Their latest machines have efficiency of 0.5J/GH.

[kpitti]

Will be interested to check decrease of total Hash in the network. It`s must be visible.

[PolyCoin-Team]

mining its a risk from the beginning, now with the coins at 270 usd we lost money.

I want to see what is the next step from all the companys squeeze the asics to break the sustability


Cex first one, Knc miner Second and Bitmain 3rd

The coins are at $240 now not $270!!!

[sandykho47]

If bitcoin price keep falling down
Another cloud mining will halts their services too

I wonder if bitcoin difficult will down this week ?

[flipstyle]

If bitcoin price keep falling down
Another cloud mining will halts their services too

I wonder if bitcoin difficult will down this week ?

Possible but not likely.  The chinese have tens of millions into dedicated supercomputing farms that I doubt they'll stop their operations just because of dropped price.  Then again, I could be wrong.

[Chemistry1988]

Not a surprising news at all. You should see this coming a week ago, when bitcoin price was going down and mining difficulty was expected to go up 10%.

[wang_yan]

If bitcoin price keep falling down
Another cloud mining will halts their services too

I wonder if bitcoin difficult will down this week ?

Possible but not likely.  The chinese have tens of millions into dedicated supercomputing farms that I doubt they'll stop their operations just because of dropped price.  Then again, I could be wrong.

There're a lot of ant miner shipping tomorrow, so the difficulty still might grow.

[serje]

Is it to early to ask if you got cexed?
How much is the GH they sold worth now?

https://www.youtube.com/watch?v=K2ku1A5Ox8U

[n3rvi0zz0]

total Hash Rate:    292,177,963 GH/s

and dropping!!!

[mayax]

Other miners like cloudhashing.com announced that they will stop minering if the price will fall under 200 usd.

they can't cover their costs with this price.

[newIndia]

Other miners like cloudhashing.com announced that they will stop minering if the price will fall under 200 usd.

they can't cover their costs with this price.

Cloud Mining services with consistent payment history are now very few. The options are narrowing down.

[ikydesu]

How about they have ghs in cex.io
Must sell all
One by one cm service down

[Kazimir]

What I don't understand... Why isn't everybody moving to P2P mining? No trust issues, better for Bitcoin, less dependency on 3rd parties. Win-win?

[monotone]

Will be interested to check decrease of total Hash in the network. It`s must be visible.

https://bitcoinwisdom.com/bitcoin/difficulty

[elephantas1]

Is it to early to ask if you got cexed?
How much is the GH they sold worth now?

https://www.youtube.com/watch?v=K2ku1A5Ox8U

it fell from 0.0015 to 0.0005 im really happy now that i sold it a few weeks ago when they had problems and now im safe

[johnyj]

Approach bitcoin in any centralized way of doing business is very dangerous, soon many large firms will go broke and mining back to the hands of home miners. Home miners are not fiat profit oriented, while large organizations are not