Topic: Mining with CEX.IO or why do I not believe skeptics - page 4. (Read 22063 times)

For the most I try, I don't understand how these businesses make money.

You've got the gold buried, and the shovel in your hands. So you rent the shovel ? Wtf ?

 I just don't trust them. Period

 Was "fun" mining there for a while, but felt like I was mining for a crime syndicate or cartel for some-odd reason

 Not to mention I had genuine issues with not being able to properly sort workers alphabetically, hide old/retired workers, and set payout thresholds. Either way, back to supporting BTCG after ghash.io added that massive block of hash power recently.

 I guess now we know where all the Bitfury chips have been going for the last couple months

 *sigh*

Looks like the scam is collapsing

+1 Best explanation I've heard so far.

Cex has 2 types of mining: the mining which you as an individual bring to the pool (like any other pool), and the hosted mining they offer for people to trade in BTC and NMC. The two do not mix. Cex themselves supply all of the hosting for the hashpower that gets traded on their market, i.e. Cex is in total control of the supply of hashpower in the market - they are supposed to act as "market makers".

The way that Cex does it is they add more hashing hardware in their hosting facilities and then they sell it onto the market at the market rate (which means that Cex earns the bitcoins for these trades) and the price is, of course, set by supply and demand. If Cex did not increase the supply of GHS in the market, you would actually see a rise in the cost per GHS because of more miners coming to the pool with greater amounts of bitcoin fighting over the same amount of supply (yes, this would happen despite the return on holding GHS decreasing as the difficulty increases).

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price. They could be as clumsy as adding 5TH/s and dumping it all onto the market at once causing the price to crash, or they could be smarter and dribble it in over time. You just don't know, but I guarantee they are not as smart or as experienced as the traders in a commodities market.

Bitfury chips supposedly

Ok, but what do they add? Do they "IPO" new GigaHash and sell them on the exchange?

The point is to enrich themselves and scam you.

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

Market is a market when all possibilities are open, unlike cex, where 'goods' have very short expiry date which leaves no option but price going down, and you can't short this 'market' so this is a loose loose situation unless others fall to this misrepresentation.

I mined with cex for a couple of weeks and enjoyed trading hashpower and earning bitcoins rather than just having them sit in my wallet.

The problem that I had with them though is that there was no indication of how or when CEX added to the supply of hashpower. I asked them and they said they only do it when the difficulty increased, but basically it was totally opaque. There is no way that I could tell what was the total supply of hashpower in the market or how it was changing.

Despite that, I traded for a while. I thought I basically had the market figured out. With the difficult changing at known intervals I though it would be relatively simple to sell just before the difficulty changed (supposedly the high) and buy just after the change (supposedly the low). But during the last adjustment the market didn't act like that, which gave me the heebie-jeebies so I sold everything (at around 0.072 BTC/GHS) and I'm super glad I did because it crashed hard the last few days.

The motto of the story is: a market is a market. If you plan to trade in it then you're doing it to make money and you need to invest time to learn it and do it properly. Basically I don't have the time, so I'm not willing to take the risk any longer. It was a good learning experience though.

what is this 100th mine that offers 1ghash for .03 btc each ?

As of 201312252035 (Eastern US)

BTC Guild: 0.00183451
Eligius: 0.00179885
EclipseMC: 0.00167789
Ghash.IO: 0.00168542 (0.03009683 GHS * 0.056)

Not a proud holder, just doing an experiment over time. Each pool has a single block erupter that has been running since the 14th. I'm reinvesting all proceeds from ghash.io directly into GHS with the instant buy function, so no fancy trading. As with any less liquid commodity, I wouldn't recommend getting yourself into a situation where you have to sell it at a low in order to make a payment on something. At the very least, it is holding its own with the other pools - it has been up and down.

0.052 BTC/Gh, would like to see how the proud holders are doing now

I don't think someone who wants to lose something will use calculator.

kickbit there is mistake in app title it should be:
"Estimate your bitcoin mining loss"

No secret that the price will keep going down, nothing fraudulent there.

Yeah, I'm working on user interface... It's not perfect yet.

You can find it if you click on any month row:

Go to Cex. Open the trollbox and do everything they tell you to do.

You have won because another sucker paid even more, eventually someone will hold this overvalued shares and lose.