A major announcement was made yesterday afternoon by CEX.io, as they decided to put all of their Bitcoin cloud mining efforts on hold due to unprofitability. While this change has to do with the current Bitcoin price drops, it looks like cloud mining on CEX.io will not be resuming any time soon. Here is some more information unveiled by the team earlier today on Bitcointalk.
It is important to note that all of the GH/s mining power users can buy, sell and trade on the CEX.io platform, is not property of CEX. Each and every bit of cloud mining hashpower is provided by companies who have partnered with CEX.io, and none of the devices is stored in any of the location CEX has access to. This is something I pretty much expected, but it is good to see this confirmed by an official representative.
Speaking of the mining hardware provided by their partners, CEX.io pays maintenance fees to these partners while Bitcoins are being mined. Or to be more precise, those maintenance fees are paid in fiat currency (USD). Given the recent drop in Bitcoin price, cloud mining has simply become inefficient when comparing the income generated versus the maintenance fees.
While the Bitcoin cloud mining over at CEX.io is on hold for the time being, the company and platfor; are not shutting down. All of the GH’s in users’ balances can still be freely traded on the marketplace in exchange for fiat currencies, Bitcoin or other digital currencies. The exchange platform’s operations are not affected by the decision to halt all Bitcoin cloud mining for now.
But there is also good news for CEX.io, as several of their customers are indicating they will keep mining with them once profitability has been restored. As a result of this positive feedback, the CEX team is working on a “switch button”, allowing every user to control their own cloud mining directly from their user profile. More information on this feature will be announced in the near future.
For those of you wondering what it would take for CEX.io’s Bitcoin cloud mining to become profitable again, you might be shocked at the result. Given their hardware maintenance fees owed to their partners in USD, CEX.io needs a Bitcoin value of AT LEAST US$320 at the current mining difficulty. Do keep in mind this value will fluctuate as the mining difficulty changes.
With the Bitcoin cloud mining program paused for the time being, CEX.io will focus on their two main projects : the Crypto Exchange and the GHASH.io mining pool. The Crypto Exchange has benefited from the fiat currencies and KYC/AML procedures being implemented. GHASH.io on the oher hand will be undergoing some major changes and upgrades in the near future.