All About BItcoin and Litecoin mining and other alternative crypto currencies
After the announcement of the dual mining awards for the new Ghash.io Litecoin mining pool and then “changing the rules” on the go two times already, now it seems the LTC mining pool at the CEX.io operated service is experiencing some temporary issues. A series of blocks (11 in total) in the LTC pool are getting no confirmations, probably marked as orphans, however this is about 3 hours of mining time literally wasted for the people that expect to be getting double awards for their hashrate. We have already gave our recommendation to move your miners from the LTC pool as soon as they started adding extra rules some time after the initial announcement for double mining awards. So if you still haven’t done so, we are again going to recommend that you do this now, because with a few more rule changes and issues in the pool there is a chance that you might end up with less than the normal LTC mining profit for a week instead of the promised 2x (or up to 2x in the best case). It seems that CEX.io were not fully ready to launch their LTC mining pool and they were not ready to handle the overwhelming user interest to their 2x mining award and they are not handling it well even after changing the rules for the 2x award.
It seems that CEX.io did not expect so overwhelming users interest in their dual mining rewards for Litecoin mining in their new pool. The pool has almost reached 40 GHS of Litecoing mining hashrate in less than 24 hours since the announcement of the promotion for the double payout per LTC block. And in order to prevent getting 51% of the Litecoin network, now the reward multiplier will be adjusted according to the pool speed. For a total hashrate of the pool below 40 GHS the 2x multiplier will remain active, between 40 and 60 GHS the multiplier will be just 1.25x and for over 60 GHS it will will go down back to x1. And since the Litecoin pool hahrate has already gone very close to 40 GHS it is possible that soon the profitability of mining LTC at the CEX.io Litecoin mining pool might not be as good as if mining in alternative pools with automatic switching for the most profitable altcoin. So keep an eye on the pool hashrate if you have moved your Scrypt miners to the Ghash.io pool already to mine Litecoin and if the hashrate of the pool continues to rise so rapidly be ready to move back to other pools…
Update: It seems that CEX.io now wants to drive away all of the users they brought back to their pool. The 2x bonus awards that was initially without a limit and then was available with the total pool speed of up to 40 GHS has now been reduced for a pool speed of 25 GHS. We no longer recommend to stay at their Litecoin mining pool, get your miners away from there as they are really not handling the situation well… move them now and withdraw your mined LTC earnings. We don’t want to have to check every few minutes if they have changed their mind yet again and as a result to have mined less LTC that we could’ve if we used another pool with no rules that change all the time and probably neither do most of you!
The fresh information from CEX.io about the addition of an option to buy future mining contracts for Bitcoin has made us thing and calculate how profitable are they if we compare them to what other options are already available to start mining immediately. We are going to do a comparison between the FHA contracts (purchasing cloud mining hashrate for the end of April) that you can already purchase to the currently being shipped Bitmain AntMiner S1 BTC ASICs and to a BTC cloud mining service that is already available and running by offering 5 year Bitcoin mining contracts, namely the PB Mining Bitcoin cloud mining service. We are going to compare how much it will cost you to purchase 1 Terahash (1 THS or 1000 GHS) worth of Bitcoin mining hashrate at each of these services.
1 THS of ASIC mining hardware currently shipping:
- 5x 180 GHS Bitmain AntMiner S1 overclocked to 200 GHs each
- This will cost you about 5 BTC for the moment for the miners
- You will need power supplies for about 2100W for them
- You will need to pay for 2.1 KW of power an hour for electricity
- Miners will be at your door in a week and you will start mining
1 THS of PB Mining cloud hashrate currently being sold:
- The current cloud mining hasrate price is 0.0083 BTC per 1 GHS
- You will need to pay 8.3 BTC at the moment for 1000 GHS
- The cloud hashrate will start mining for you in a few hours
- No extra cost for electricity or need to support hardware
- This is a long term mining contract for 5 years that you purchase
1 THS of CEX future cloud hashrate for end of April (FHA):
- The current contract price for FHA is about 0.00799999 BTC per 1 GHS
- You will need to pay 7.999 BTC for a purchase of 1000 GHS contract
- The cloud hashrate will start mining in about month and a half for you
- No extra cost for electricity or need to support hardware
- You can sell or trade the cloud mining hashrate contract at anytime
So it seems that all of the above options do have their own advantages, but there are disadvantages as well. It is up to you to decide what seems the most reasonable for you at this moment if any of the options is a viable alternative for you. Based on our experience, the AntMiners are very good product and the company making them is really fast and ships from stock (if ordering directly from them), not to mention the always up to date prices going down with the difficulty increase. The PiggyBack Mining cloud mining service so far is working great based on our few weeks of experience using it, they also update prices after difficulty increase. The use of CEX.io for cloud mining is not so good of long term investment in mining hashrate due to the higher prices driver by the users trading on exchange, but if you use the platform for trade and treat the cloud mining as just an extra profit while trading it is not a bad option.