CEX.IO Temporarily Suspends Cloud Mining
What a great deal for CEX.io. If we initially trusted our money on CEX believing we could have made our money back in 4 months on about 1000$. The main thing is never pay to have your money given back to you without interest, a bank seems like a better place to put your money than cloud mining. Other websites such as Hashnest and ZeusHash have paused their mining activities.
Cex.io’s Official Statement:
“Suspension of CEX.IO cloud mining service is only a forced temporary measure, the result of cloud mining costs exceeding mining profit,” “Currently all cloud mining/maintenance costs are directed to the Hardware provider, hence, we are open for negotiations with additional mining hardware providers, who can offer favourable terms. And, as soon as we get an opportunity to upgrade mining hardware, or come to more efficient terms with energy suppliers, cloud mining process will be automatically resumed.”
-Jeffrey Smith, Chief Information Officer of CEX.IO.
Meanwhile, CEX.IO will continue operating as full service exchange platform for trading cryptocurrencies and fiat money. As Bitcoin mining difficulty has continuously been dropping, cex.io decided it was time to screw their customers by stopping their cloud mining services.
The ultimate scam: Bitcoin Cloud Mining
“As new bitcoin fanatic, I thought CEX.io cloud mining could deliver”
It made so much sense to be able to buy and sell ghs just like bitcoin. Their exchange had horrible read times for the API, slow response, long trade order items. Nowadays, cloud mining companies are offering all sorts of incentives to get new subscribers into their programs. Also, we’ve read rumors that the Chinese government is subsidizing certain mining initiatives in order to manipulate the market. It seems foolish to believe that, it seems just as foolish not to consider any chance of possibility there.
MIT Technology Review has written an extensive article about how many bitcoin mining businesses have ceased since the slump in bitcoin’s price. The rapidly changing difficulty has further exacerbated the problems. It’s funny to think these companys invest so much time and money into developing more efficient and powerful miners, to all of sudden close up shop just because of a price correction. Did anyone really think that bitcoin would stay around $1000 before any kind of mainstream adoption.
“A very real and serious problem is centralized mining.”
Mining in the cloud for the mere novelty and convenience of having to say you have “mined bitcoin” is the wrong approach to mining. Many have told me that mining bitcoin should be left to the pros because of the risk of fire, shock, protection, and other risks associated with running high-powered computational hardware 24/7, 365. The problem is that mining is meant to be done by the people, those who got in early, have profited already. Cloud mining is something that will continue, but this market correction gives those involved time to reconsider the novelty, or as some would call it “their investment”. This is a major setback for the viability of being able to mine bitcoin without your own in house equipment.
GHS Become Worthless
The users enabled CEX to purchase powerful machines so they could grow their business, in exchange we constantly gave up our bitcoins for Gh/s that now are worth essentially zero. Price per GHs in October 2014 was roughly $1 USD now (January 2015) that same Ghs is roughly 0.15 cents USD on CEX.
Now if others are still able cash out withdrawals will take forever. CEX is slowly approaching a scam status. In a penny stock at least you would go to no bid and still be able to claim a tax loss, here is another story.
Our Stance on CEX.io Cloud Mining
We’ve begun to shift our interests on exchanges from CEX.io and towards BTC-E. It is equally important to realize that any amount invested needs to be diversified. We insist upon a continual process of depositing to mediate risk by . This process involves trial and error. For the time being there is no central exchange that is the prominent safest exchange for crypto coins. For a period of time it was Mt. Gox. That’s no longer the case. For now, we will use other cryptocurrency exchanges like: BTC-E, Bitstamp and Bitfinex.