Mining with CEX.IO or why do I not believe skeptics

junglecat

newbie

Activity: 33

Merit: 0

Quote from: fsb4000 on October 19, 2014, 08:03:37 PM

Quote from: junglecat on October 19, 2014, 05:50:03 PM

Quote from: silvestar on June 01, 2014, 09:49:51 PM

Quote from: lucates on April 10, 2014, 06:27:53 AM

I buyed 250 GHS and realise he mines only with 16%, 84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably because of the price rise in the past few days).

You are correct that the current fee is ~30%. The algorithm is here: https://cex.io/maintenance

your calculation is wrong.
current fee = (0.105 / 0.1654) * 100% = 63.5%

https://bitcoinwisdom.com/bitcoin/difficulty

Yes, I calculated it a while ago and have not looked again. I should have been more clear. So it has doubled, so has the price per GH. It still isn't 84%. Assuming the market keeps moving sideways 63.5% is still very good as an electricity hedge. Cool

fsb4000

legendary

Activity: 1400

Merit: 1000

Quote from: junglecat on October 19, 2014, 05:50:03 PM

Quote from: silvestar on June 01, 2014, 09:49:51 PM

Quote from: lucates on April 10, 2014, 06:27:53 AM

I buyed 250 GHS and realise he mines only with 16%, 84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably because of the price rise in the past few days).

You are correct that the current fee is ~30%. The algorithm is here: https://cex.io/maintenance

your calculation is wrong.
current fee = (0.105 / 0.1654) * 100% = 63.5%

https://bitcoinwisdom.com/bitcoin/difficulty

junglecat

newbie

Activity: 33

Merit: 0

Quote from: silvestar on June 01, 2014, 09:49:51 PM

Quote from: lucates on April 10, 2014, 06:27:53 AM

I buyed 250 GHS and realise he mines only with 16%, 84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably because of the price rise in the past few days).

You are correct that the current fee is ~30%. The algorithm is here: https://cex.io/maintenance

junglecat

newbie

Activity: 33

Merit: 0

I use CEX.IO GH as a hedge against electricity on my own farm while the BTC is idle in my mining wallet. Then when I'm ready I dump it into more miners.

SuniX

newbie

Activity: 11

Merit: 0

Quote from: hoop on October 18, 2014, 09:36:00 PM

if i buy 100 GH from CEX, how and when get profit

Your profit opportunity is in the buying and selling of the asset itself. The mining rewards are a small token flow relative to the price you pay. Trade it, don't buy sit back and think profit will arrive.

Thenen

full member

Activity: 226

Merit: 100

Quote from: hoop on October 18, 2014, 09:36:00 PM

if i buy 100 GH from CEX, how and when get profit

Actually, whatever hash that you purchase from cex will not earn you any profit. It will give you negative return.

xstr8guy

hero member

Activity: 784

Merit: 1004

Glow Stick Dance!

Quote from: hoop on October 18, 2014, 09:36:00 PM

if i buy 100 GH from CEX, how and when get profit

Lol, you do know that 100GHs will earn you approximately $0.57 per day, right? You'd be very lucky to actually get half that after maintenance fees.

So why bother? You could probably find a 25 cents every day by looking down while going for a short walk. Plus you'll get fresh air and exercise. And it costs you nothing!

Anyways, here's the answer to your question...
∞

hoop

legendary

Activity: 1524

Merit: 1001

NOBT - WNOBT your saving bank◕◡◕

if i buy 100 GH from CEX, how and when get profit

zvs

legendary

Activity: 1680

Merit: 1000

https://web.archive.org/web/*/nogleg.com

Quote from: bomberb17 on June 05, 2014, 02:04:00 PM

Quote from: bomberb17 on June 04, 2014, 02:01:37 AM

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

Ok so I'll try to take the fee into account.
From here
https://cex.io/maintenance
fee is $0.26/month for 1 GHS
which makes 0.26/660 = 0,00039 BTC/month
which makes 0.000013 BTC/day

So for the current difficulty, each GHS makes a net of about 0.000035 BTC/day.
For the upcoming diffuculty, each GHS will make roughly 0.00003 BTC/day.

and on Cryptsy, it'll make 0.000043 per day, which is why it doesn't make sense that they're at essentially the same price right now

again, not that I think either of them is worth buying, but it just shows the general stupidity out there

bomberb17

hero member

Activity: 773

Merit: 528

Quote from: bomberb17 on June 04, 2014, 02:01:37 AM

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

Ok so I'll try to take the fee into account.
From here
https://cex.io/maintenance
fee is $0.26/month for 1 GHS
which makes 0.26/660 = 0,00039 BTC/month
which makes 0.000013 BTC/day

So for the current difficulty, each GHS makes a net of about 0.000035 BTC/day.
For the upcoming diffuculty, each GHS will make roughly 0.00003 BTC/day.

zvs

legendary

Activity: 1680

Merit: 1000

https://web.archive.org/web/*/nogleg.com

Quote from: zvs on June 05, 2014, 07:06:20 AM

Not that I'm too keen on either price, but buying on cex.io at 0.0072 or whatever it's at now would be stupid or possibly uninformed, since MN2 on Cryptsy is the equiv of .0075 per GH right now, and it doesn't charge that 30%+ maintenance fee that cex.io does (or is it 40% now, after the difficulty increase?).

ed: I'll call it 35% after difficulty increase, since it used to be 35%, they cut the fee by 13%, but the difficulty is about to go up 13%.... so then the MN and MN2 on Cryptsy should be valued near .001.... or cex.io should be worth a shitload less.

i'd need cex.io around 2.5c (ed2: oops, I mean 0.0025) for me to be interested, the cryptsy stuff around 4c (0.004)

err, that'd be MN would be around .01, MN2 around .1.. if you based it off of what people are paying on cex, anyway... gd, fixed

zvs

legendary

Activity: 1680

Merit: 1000

https://web.archive.org/web/*/nogleg.com

Not that I'm too keen on either price, but buying on cex.io at 0.0072 or whatever it's at now would be stupid or possibly uninformed, since MN2 on Cryptsy is the equiv of .0075 per GH right now, and it doesn't charge that 30%+ maintenance fee that cex.io does (or is it 40% now, after the difficulty increase?).

ed: I'll call it 35% after difficulty increase, since it used to be 35%, they cut the fee by 13%, but the difficulty is about to go up 13%.... so then the MN and MN2 on Cryptsy should be valued near .001.... or cex.io should be worth a shitload less.

i'd need cex.io around 2.5c (ed2: oops, I mean 0.0025) for me to be interested, the cryptsy stuff around 4c (0.004)

bomberb17

hero member

Activity: 773

Merit: 528

Quote from: Anotheranonlol on June 04, 2014, 02:28:29 PM

Quote from: Anotheranonlol on June 04, 2014, 08:52:39 AM

PETA is considerably more profitable than CEX

PETA - hashrate per share 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

Just to prove the point above,

Todays PETA prices:

the mining operation has increased, now each share is entitled to 17.2GH instead of 15GH as earlier.

PETA - hashrate per share 17.2GH = last market price 0.0715 BTC
PETA- 1GH = 0.0041 BTC

Like I said however, there is a risk involved into all this (website shutdown/account hack etc.)
Both investments are risky, peta just looks even more risky compared to cex.

Anotheranonlol

hero member

Activity: 588

Merit: 504

Quote from: Anotheranonlol on June 04, 2014, 08:52:39 AM

PETA is considerably more profitable than CEX

PETA - hashrate per share 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

Just to prove the point above,

Todays PETA prices:

the mining operation has increased, now each share is entitled to 17.2GH instead of 15GH as earlier.

PETA - hashrate per share 17.2GH = last market price 0.0715 BTC
PETA- 1GH = 0.0041 BTC

Houseman

member

Activity: 156

Merit: 10

Quote from: Majixagi on June 04, 2014, 10:19:06 AM

Quote from: bomberb17 on June 04, 2014, 02:01:37 AM

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

I mostly agree with this, however I'd point out that cost has been going up lately, which is counterintuitive. Right now I'm down to less than 1GHs because I expect a sell off and then I'll buy back in.

This is exactly the CEX value proposition when compared to the fixed contract cloud miners. With CEX you can buy/sell your GHS at anytime in very liquid market. You have the chance to buy - mine (for however long)- sell. Profit is possible both from mining income and GHS trading.

Majixagi

member

Activity: 98

Merit: 10

Quote from: bomberb17 on June 04, 2014, 02:01:37 AM

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

I mostly agree with this, however I'd point out that cost has been going up lately, which is counterintuitive. Right now I'm down to less than 1GHs because I expect a sell off and then I'll buy back in.

Anotheranonlol

hero member

Activity: 588

Merit: 504

PETA is considerably more profitable than CEX

PETA - 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

bomberb17

hero member

Activity: 773

Merit: 528

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

silvestar

legendary

Activity: 1134

Merit: 1002

Quote from: lucates on April 10, 2014, 06:27:53 AM

I buyed 250 GHS and realise he mines only with 16%, 84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably because of the price rise in the past few days).

fullintegrity

member

Activity: 110

Merit: 10

I have been mining and currently have just under 60 GH/s and also 11 antminers (2 GH/s) here in the house, along with a gridseed (dual miner) and have found all this VERY INTERESTING and some worthwhile to learn. I do think the article was perfectly written to help the newbie understand what they are getting into, wish i had read it prior, but i went at this very blindly after dropping about .5 btc on btce and playing for 3 months while the market crumbled, still managed to break even, so what they heck, now im making more btc than i would if i hadnt gotten into it.
thanks for sharing. Grin

Topic: Mining with CEX.IO or why do I not believe skeptics (Read 22076 times)