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

[Elwar]

Cloud mining....your bitcoins are in the cloud.

Just don't ask for them.

They're on the line.

[aerobatic]

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

what you said makes no sense.   professional miners have lower costs than home miners because they use scale and location to their advantage.  if the professionals get priced out because of the low btc price, there is no way that home miners can take up the slack as their costs are significantly higher, and it'd be very unprofitable.   home miners aren't a 'charity'.  they mine for the reward, not just to power the network.  if it was significantly unprofitable, home miners can't afford to do it.   (and if they want bitcoins, they would just BUY them, for less cost than mining them).

[mayax]

only few home miners afford hardwares of over 30K.

otherwise, you cannot be on profit. also, you cannot be on profit if you sell the Bitcoin for 200 USD...

http://blockchained.com/profit/index.php

[arvindr]

only few home miners afford hardwares of over 30K.

otherwise, you cannot be on profit. also, you cannot be on profit if you sell the Bitcoin for 200 USD...

http://blockchained.com/profit/index.php

Looks like the price drop would demotivate a majority of  people from mining as it won't be profitable at all.

[sandpaper]

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

what you said makes no sense.   professional miners have lower costs than home miners because they use scale and location to their advantage.  if the professionals get priced out because of the low btc price, there is no way that home miners can take up the slack as their costs are significantly higher, and it'd be very unprofitable.   home miners aren't a 'charity'.  they mine for the reward, not just to power the network.  if it was significantly unprofitable, home miners can't afford to do it.   (and if they want bitcoins, they would just BUY them, for less cost than mining them).

Luckily a lot of home miners do it on a small scale but enough to make an impact especially with the turn off of some. I know for awhile I had no electric cost because of a fixed rent and could get away with using inefficient machines. That could still be the case for a lot. Solar / wind powered should also not feel the effects nearly as much if at all. What's it matter if the price goes to $200 when you have 2kw solar dedicated to it (already paid off).

[ensano]

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

what you said makes no sense.   professional miners have lower costs than home miners because they use scale and location to their advantage.  if the professionals get priced out because of the low btc price, there is no way that home miners can take up the slack as their costs are significantly higher, and it'd be very unprofitable.   home miners aren't a 'charity'.  they mine for the reward, not just to power the network.  if it was significantly unprofitable, home miners can't afford to do it.   (and if they want bitcoins, they would just BUY them, for less cost than mining them).

Lots of home miners have free power and are only running under 1TH as a hobby.  There'd still be plenty of power securing the network if the big farms shut down.  

Personally I'm hoping for a price of 1-150$.  This would see the farms disappear very fast

[mayax]

free power? can you please give an example of free power. do not tell me about solar power because it is not free.
you need an expensive investment for that and it's not working if you live in Sweden or even in Eastern Europe where 6 months is winter.

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[ensano]

free power? can you please give an example of free power. do not tell me about solar power because it is not free.
you need an expensive investment for that and it's not working if you live in Sweden or even in Eastern Europe where 6 months is winter.

My rent is all inclusive.  I pay x amount per month regardless of the amount of power I use.


I have free power.  I've identified 4x 15 amp breakers that I don't use so theoretically I can run 6000 watts at my place with only the upfront cost of the equipment.

[mayax]

and how much profit do you make now?

[ensano]

and how much profit do you make now?

I don't mine.

You asked for an example of free power.  There it is. 

[ensano]

and how much profit do you make now?

Also, I don't know if you're aware but there's a thing called a "bitcoin mining calculator".  What it is is essentially a calculator that calculates the potential earnings for bitcoin.  You can use it to see if something would be profitable to mine with.

https://bitcoinwisdom.com/bitcoin/difficulty

Try playing around with it with a $0.00 electricity price and 0% pool fee.  If you can purchase equipment at $.20/GH then it's a solid investment

[n3rvi0zz0]

Bitcoin total hashrate at 07:22 Time +0 293,976,66

Im following the total hashrate of the network, yesterday goes from 330 to 292, today bitmain will start shipping the new miners, i waiting for the big fall the price of the coins goes under 50 usd at least for couple of years, in time the reward of the block still the same (25) bitcoin will lost value because the people drop his coins cheap are the BIG FARMS.

Also the second open fire its the inflation they dont put limit to the manufacturation of miners, (BITMAIN, SPONDOLIES, KNC MINER) they build 50 petahash of miners in 3 months, they burn the network the difficulte raise level nobody can imagine and after that they sell the hardware like new.

like that be sustainanble its a dream.

All the people contribute to kill bitcoin have full wallets of btc already they drop his profits now because if the trains goes from the station they wanna be covered for millions of usd to start another bussiness.


The crypto currencie world are changing, we not are more blind, we know the only one makes profit in the Bitcoin Mining are the Companyes build the hardware.



 


Now we need to lost thousands and thousands, because mining became a joke.

[tokeweed]

expecting more BTC based companies to close shop in the coming weeks.

[jubalix]

miners are going to get schooled in what term they have to consider their investment over. The next generation of miners will be much more carefull in not overdoing it.

[n3rvi0zz0]

anyway i hope someone build a stong coin to get the place of bitcoin

the only requirement wherever its your hashrate you will get the same reward, the point of have a cryptocurrency its be anonimous safe and fair


bitcoin long time ago wasnt fair for the miners

[Bitcoinpro]

surely they understand this is a very temporary downturn in prices,

and due to the very big run up in prices over the years

its only a technical bear market not a real one

[jubalix]

surely they understand this is a very temporary downturn in prices,

and due to the very big run up in prices over the years

its only a technical bear market not a real one

a good % of people don't temporary downturn in prices or the converse. Most are sheeple

[Collymore]

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^

I wonder what it states in their terms of service about this? If it does state they can do it then I guess people are screwed.

[MUFC]

It's sad to see the reality of what effect the price drop can have on businesses. I guess this won't be the last company to close due to it. With that in mind is cex a legit cloud mining operation? I'm not familiar with each operator but many are known or seem to be ponzis and they inevitably collapse at some point anyway.

[cyberpinoy]

So where is puppets view of this thread, when a company charges 81% maintenance fees, for who knows how long, what CEX is doing is a slap in the face of the people who invested with them. Unfortunately they are in a contract, a binding one, this is a step that could land thier ass in court FINALLY. because no matter how they would like to change their contract, the people who purchased the cloud a year ago are binded to that contract, not any of the recent updates they have been making as they lie and steal and change thier business structure as they see fit to scam as many bitcoins as they can out of thier users and members. Legally they can not change a contract after it has been sealed and the deal has been made. Whatever your contract says at the time of purchase is what they HAVE to carry out, changing the contracts are illegal. I hope some fancy pants lawyers son takes thier ass to court for everything they got.

CEX is a scam, a legally binding scam that has stolen thousands and thousands of bitcoins from innocent investors, miners and just run of the mill people looking for quality service from a prominent company. They are guilty of false advertising, breach of contract, as well as swindling.

[tokeweed]

If they wait until bitcoin price reach $320, they could halts their service for a long time
It's better they to get a new hardware like UMISOO / antminer S4 / something better

true. and who knows how long it'll be at these prices. 1 year? 2 years?  5?? 

[Solange]

If they wait until bitcoin price reach $320, they could halts their service for a long time
It's better they to get a new hardware like UMISOO / antminer S4 / something better

I think they were just stating it's not possible for them to continue until it rises to that price. I don't think they intend to either and will be just forced to shut up shop instead. Sad really but I guess that's business.

[opossum]

If they wait until bitcoin price reach $320, they could halts their service for a long time
It's better they to get a new hardware like UMISOO / antminer S4 / something better

Well the reason they are waiting is that it will cost more in electricity to run the miners then they would mine. This would result in a negative EV for mining which does not make sense to do.

[Talon]

If its all based on all low price, do you think all of the clouding sites are going to halt?

[mayax]

If its all based on all low price, do you think all of the clouding sites are going to halt?

almost all of them will stop mining. it will remain the chinesse

[serje]

If its all based on all low price, do you think all of the clouding sites are going to halt?

almost all of them will stop mining. it will remain the chinesse

and the difficulty will drop and it will be profitable again

[Teemo]

wow I just read the article on coindesk, that some dumb thing to do.. just because the price of bitcoin.. its logical for them since they dont see profit.

i state dumb because what if people who are new getting into bitcoin, and they want to get into the mining game then see that lol.

[BitmoreCoin]

wow I just read the article on coindesk, that some dumb thing to do.. just because the price of bitcoin.. its logical for them since they dont see profit.

i state dumb because what if people who are new getting into bitcoin, and they want to get into the mining game then see that lol.

Their electricity cost is too high