Topic: Serious qestions about CEX.io and other cloud mining services - page 3. (Read 18563 times)
November 25, 2013, 01:32:14 AM
I would stay away from the virtual mining thing. If you wanna mine, just buy the hardware, mine with it and once it becomes unprofitable, sell it on ebay. Trust me, alot of dumbasses will buy old mining equipment with no understanding of ROI.
November 25, 2013, 01:18:46 AM
Daledaledale,
It is not you that is confused, it is the people that buy the shares that are confused. Some people that buy the shares are speculating that somebody is going to pay even more for them. That works sometimes, but the price is already too high and trend is down, so on average anybody that buys these shares is going to lose money.
It is not you that is confused, it is the people that buy the shares that are confused. Some people that buy the shares are speculating that somebody is going to pay even more for them. That works sometimes, but the price is already too high and trend is down, so on average anybody that buys these shares is going to lose money.
Some people cannot afford to buy equipment, or cannot run the equipment for one reason or another. It is more expensive to cloud hash, but depending on the price of BTC versus the cost it can be profitable.
Really? I don't think it can, because you can't pay in anything other than BTC, so I don't see why it has anything to do with the BTC/USD rate. I am saying that if you put X BTC into cex.io and simply cloud mine, there is no chance of ever getting X out, and definitely not more than X. If that was made clear to users (again, who are not interested in spec trading GHS v BTC) then no one would sign up. Currently the site seems extremely dishonest about what is going on.
You can get more out if the difficulty goes down (or goes up less). That is the gamble.
I think the lowering of difficulty (or even the lowering in the speed of increase) is very very unlikely.
New ASIC technologies are just going to break the roof.
Just for the record, I don't disagree, and I don't recommend buying hash power on CEX. I'm just saying that if you buy hash power on CEX with the intention for holding it for mining profits you are implicitly expecting difficultly to stagnate or fall.
So if the question is "are hash shares on CEX overvalued" my answer would be yes and your answer would be yes, but isn't a logical certainty.
The one thing that would likely put a damper on difficulty would be a big crash in the price of BTC. So in a way you could look at CEX as being a short on BTC.
Some people cannot afford to buy equipment, or cannot run the equipment for one reason or another. It is more expensive to cloud hash, but depending on the price of BTC versus the cost it can be profitable.
Really? I don't think it can, because you can't pay in anything other than BTC, so I don't see why it has anything to do with the BTC/USD rate. I am saying that if you put X BTC into cex.io and simply cloud mine, there is no chance of ever getting X out, and definitely not more than X. If that was made clear to users (again, who are not interested in spec trading GHS v BTC) then no one would sign up. Currently the site seems extremely dishonest about what is going on.
You can get more out if the difficulty goes down (or goes up less). That is the gamble.
I think the lowering of difficulty (or even the lowering in the speed of increase) is very very unlikely.
New ASIC technologies are just going to break the roof.
Daledaledale
Interesting analysis. I don't know any thing about the company but there are a lot if scams in BTC world and even more suckers as we can see from the five short years of its history.
If you don't understand it or it doesn't make sense. Stay away. Plenty of other gullible fools out there.
Interesting analysis. I don't know any thing about the company but there are a lot if scams in BTC world and even more suckers as we can see from the five short years of its history.
If you don't understand it or it doesn't make sense. Stay away. Plenty of other gullible fools out there.
cex is a was of money and time imo
Some people cannot afford to buy equipment, or cannot run the equipment for one reason or another. It is more expensive to cloud hash, but depending on the price of BTC versus the cost it can be profitable.
Really? I don't think it can, because you can't pay in anything other than BTC, so I don't see why it has anything to do with the BTC/USD rate. I am saying that if you put X BTC into cex.io and simply cloud mine, there is no chance of ever getting X out, and definitely not more than X. If that was made clear to users (again, who are not interested in spec trading GHS v BTC) then no one would sign up. Currently the site seems extremely dishonest about what is going on.
You can get more out if the difficulty goes down (or goes up less). That is the gamble.
Well, you can buy GHs, mine for a month and sell it.
If the prices of a GHs lower at the constant rate it has been lowering at, you can make a profit like that.
If the prices of a GHs lower at the constant rate it has been lowering at, you can make a profit like that.
Some people cannot afford to buy equipment, or cannot run the equipment for one reason or another. It is more expensive to cloud hash, but depending on the price of BTC versus the cost it can be profitable.
Really? I don't think it can, because you can't pay in anything other than BTC, so I don't see why it has anything to do with the BTC/USD rate. I am saying that if you put X BTC into cex.io and simply cloud mine, there is no chance of ever getting X out, and definitely not more than X. If that was made clear to users (again, who are not interested in spec trading GHS v BTC) then no one would sign up. Currently the site seems extremely dishonest about what is going on.
Some people cannot afford to buy equipment, or cannot run the equipment for one reason or another. It is more expensive to cloud hash, but depending on the price of BTC versus the cost it can be profitable.
That said with the great increases in BTC Value, mining has been a losing venture as compared to just buying BTC and holding long term.
Hind sight is always 20/20.
That said with the great increases in BTC Value, mining has been a losing venture as compared to just buying BTC and holding long term.
Hind sight is always 20/20.
I am really confused about the proposition of "cloud mining" or "cloud hashing" services. Let's take cex.io for example.
Let's assume you are not joining cex.io to speculatively trade GH/S <-> BTC and you aren't planning on spamming your referral link all over the place. Why would you ever use their services? I honestly don't get it.
Some statements from their site:
OK, this all sounds like there is some possibility for me to buy cloud hashing time and potentially actually see a return on my investment right? Looking at their own calculator: https://cex.io/calc we can see an estimate of predicted investment VS return.
The current rate for GHS/BTC is .0850, so say I spend 8.5BTC for 100GH/S, their calculator shows that in the first month I will make back 2.39BTC, second 1.59BTC...etc until the twelth month when it has dwindled to .03BTC and is fast dropping. The most I ever make back is 6.92BTC plus a few specks of dust after 12 months as the return approaches 0.
WHY WOULD ANYONE DO THIS? Please I don't want to hear about trading of GHS/BTC, I realize that this is how people are using it to make money, but cex.io themselves isn't only focusing on this, they are selling themselves as a mining service that makes sense, and to me it makes absolutely no sense.
Here is a scam service idea that could make a huge profit: set up a cloud mining service that offers better rates than everyone else. People pay you BTC for GHS. You don't use this BTC for any hardware, you just sit on it, and you pay them out a diminishing trickle of their own funds that decreases as difficulty increases. If you did this right you would actually be giving people better value for their buck than CEX.io and still making huge profits. Actually, how do we know that cex.io or other operations are not doing this?
Can anyone convince me that the whole thing isn't a huge scam? I would love to be convinced. The fact that proponents of the services are constantly spamming around their referral links doesn't help much.
Let's assume you are not joining cex.io to speculatively trade GH/S <-> BTC and you aren't planning on spamming your referral link all over the place. Why would you ever use their services? I honestly don't get it.
Some statements from their site:
Quote
Cloud mining or cloud hashing is a brand new concept, which allows users to form groups (pools), where their joint efforts are rewarded with greater income, in comparison with individual mining with own equipment.
Quote
Now, everybody can earn additional income with little to no risk and frequent payouts.
Quote
Cloud mining with CEX.IO is an easier, more convenient and vastly more profitable way to get Bitcoins.
OK, this all sounds like there is some possibility for me to buy cloud hashing time and potentially actually see a return on my investment right? Looking at their own calculator: https://cex.io/calc we can see an estimate of predicted investment VS return.
The current rate for GHS/BTC is .0850, so say I spend 8.5BTC for 100GH/S, their calculator shows that in the first month I will make back 2.39BTC, second 1.59BTC...etc until the twelth month when it has dwindled to .03BTC and is fast dropping. The most I ever make back is 6.92BTC plus a few specks of dust after 12 months as the return approaches 0.
WHY WOULD ANYONE DO THIS? Please I don't want to hear about trading of GHS/BTC, I realize that this is how people are using it to make money, but cex.io themselves isn't only focusing on this, they are selling themselves as a mining service that makes sense, and to me it makes absolutely no sense.
Here is a scam service idea that could make a huge profit: set up a cloud mining service that offers better rates than everyone else. People pay you BTC for GHS. You don't use this BTC for any hardware, you just sit on it, and you pay them out a diminishing trickle of their own funds that decreases as difficulty increases. If you did this right you would actually be giving people better value for their buck than CEX.io and still making huge profits. Actually, how do we know that cex.io or other operations are not doing this?
Can anyone convince me that the whole thing isn't a huge scam? I would love to be convinced. The fact that proponents of the services are constantly spamming around their referral links doesn't help much.
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