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Bitcoin Cloud Mining with CEX.IO – can it work?

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I’ve been learning a lot about Bitcoin and cryptocurrencies over the past few months and have experimented with some simple mining as well.

Bitcoin mining requires some serious (and or specialist) hardware to make any impact and, on top of that, you have overheads such as maintenance and the dreaded electricity bill. There is, though, an alternative – cloud mining.

Cloud mining relies on other people’s hardware – you buy mining power on their machines and they take care of it all. It’s an interesting option but I had wondered whether it was realistic. I’ve been experimenting with CEX.IO over the past week and the results have been interesting.

At this point, it’s probably a good idea for me to say that this is not investment advice and that my results might not match mine! You need to look into this and take whatever risks you feel comfortable with – just like the whole Bitcoin thing in general.

So, about a week ago, I used 0.1 BTC to buy a some GHS. GHS are the CEX.IO unit of mining and 1 GHS = 1 GH/s of hashing power. The mining is done on the GHash.IO pool which has a 0% fee. The price of GHS fluctuates within the market and you can buy and sell at will and without fees – whatever you buy instantly starts mining over at GHash.IO. My 0.1 BTC bought about 1.97 GHS which, in turn, has been delivering a mining return of just under 0.5% per day (compare that to the 0.5% per year bank rate that we have in the UK at the moment!). I have also been logging in daily to reinvest the BTC into more GHS – meaning that my GHS keeps growing with literally no effort – as I write, it’s at 2.049 GHS.

In addition, GHash.IO allows merged mining which means that, with no impact on your BTC mining, you are also mining DevCoin, NameCoin and IXCoin. You can also use those NameCoins to buy GHS – which I’ve also been doing.

To me, the returns at the moment on cloud mining on CEX.IO are good – really good. The market also seems relatively stable (and by relatively stable, I’m talking about relative to the BTC market!) and it allows you to cash in your GHS simply and with no fees – so you can walk off into the sunset with your fist full of Bitcoin!

So, where are the risks? Well, firstly, it’s Bitcoin with all the inherent risks that that entails. The GHS market may fail. The company running it might go under. The returns may reduce.

The upside, to me, looks good and much more interesting than having Bitcoin sat in a wallet doing nothing – although, as said, it’s for you to work out whether cloud mining is for you. Take a look for yourself and find out more about CEX.IO here.

 

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Written by James

January 15th, 2014 at 9:42 pm

Posted in Bitcoin