How does CEX work?

[miztaziggy]

If CEX initially sells the mining power for say 0.01 BTC / GH, it presumably receives the 0.01 BTC which it uses to pay for electricity and the miners that are used.

Surely, that 0.01 BTC will soon run out with electricity and maintenance costs, so, where does the other income come from to pay for that, since the mining power GH is then traded between users, not bought directly from CEX.


So then, what about people that have put their BTC into this service and purchased mining power. I presume that currently they're getting 0 returns since the cloud mining service is turned off?

[newIndia]

Video explanation: https://www.youtube.com/watch?v=K8hTnEG5bno

[BitUsher]

I would be careful as most cloud mining operations seem to be partial or full ponzi's . I don't know of any that will even give you virgin coins anymore.

[Cicero69]

This sounds like something people should stay clear of.

[oldbute]

They charge a maintenance fee https://cex.io/maintenance

[Madness]

If CEX initially sells the mining power for say 0.01 BTC / GH, it presumably receives the 0.01 BTC which it uses to pay for electricity and the miners that are used.

Surely, that 0.01 BTC will soon run out with electricity and maintenance costs, so, where does the other income come from to pay for that, since the mining power GH is then traded between users, not bought directly from CEX.


So then, what about people that have put their BTC into this service and purchased mining power. I presume that currently they're getting 0 returns since the cloud mining service is turned off?

Well yeah Of course I guess they are getting 0 returns . that's obvious
"“Mining with using User’s Gigahashes can be stopped by CEX.IO if the amount of the Maintenance Cost exceeds rewards for each mined block or if the mining is economically inexpedient.”"
Here is what they said on their blog once they turned off their cloud mining services : http://blog.cex.io/news/cex-io-temporarily-suspends-cloud-mining-services/ also see here : https://cex.io/maintenance "For sole purposes of covering electricity and upkeep, we charge a small commission for cloud-based GHS."

[Bit_Happy]

If CEX initially sells the mining power for say 0.01 BTC / GH, it presumably receives the 0.01 BTC which it uses to pay for electricity and the miners that are used.

Surely, that 0.01 BTC will soon run out with electricity and maintenance costs, so, where does the other income come from to pay for that, since the mining power GH is then traded between users, not bought directly from CEX.


So then, what about people that have put their BTC into this service and purchased mining power. I presume that currently they're getting 0 returns since the cloud mining service is turned off?

Yes, what did happen with their mining pool? Last year it (ghash.io) was #1, and so big that people were really concerned about them having over 50% of the network power.

Edit: 'Madness' posted while I was typing. If the #1 pool cannot make money, hopefully prices will rise soon and they can get back in business.

[thresher]

They charge a maintenance fee https://cex.io/maintenance

They charge a maintenance fee that is higher than the btc you will mine, so they get you're initial investment and then they just cripple you with endless debt.
What is that shit, sharecroppers or something?

[michinzx]

I would be careful as most cloud mining operations seem to be partial or full ponzi's . I don't know of any that will even give you virgin coins anymore.

cex has been around a while and I would say that they arent a scam, but cloud mining will most likely not get you ROI, even more so now that bitcoin price has dropped enought for them to shut off miners.

[Divinespark]

CEX doesn't work. Isn't that the whole bloody point? LOL

[kpitti]

This is good question. I winder the same as I was with CEX sone time ago, but quit 😄 early. Anyone who has a contract can explain here?