All About BItcoin and Litecoin mining and other alternative crypto currencies
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.
It seems to be official now after digging a bit around the CexIO website we found some information that “LTC Cloud mining is coming soon” and adding the Litecoin mining pool at Ghash.io is apparently only the first step. The currently running promotion for doubled rewards for Litecoin mining for a week in the new LTC pool is apparently a good trick to attract a lot of user attention and after this week ends the service will most likely start offering LTC cloud mining and trading to go along with the already available BTC cloud mining and trading functionality. And apparently things are already working pretty well with the current pool speed of the Litecoin mining pool at 5.76 GHS and growing as more and more people are joining in. The 100% extra profitability promised over the standard LTC mined is an offer that is not easy to pass at the moment with the not so high profitability of other alternative cryptos, so the news is spreading pretty fast.
The CexIO account Balance page already shows some new things such as the FHM and FHA balance that apparently stands for future mining contracts. 1 FHA and 1 FHM stands for futures contract for 1 GHS that will start mining for you on 26th of April and May respectively with both already traded on the website’s exchange. The purchase of future hashrate at a much lower price of 0.00399999 BTC per FHA or 0.00399999 BTC per FHM. The total FHA (April) is 1000000 GHS (1000 THS) and the total FHM (May) on the exchange is 900000 meaning that apparently there are 900000 GHS (900 THS) more that will be added at CexIO and you can pre-order now. It is very much like pre-ordering a BTC ASIC, but with an exact date for delivery and easier to calculate the break even in time. This however does not mean that these future cloud mining hashrate contracts will be profitable as there are many variables to take into account as well as with pre-orders for ASIC hardware.